According to latest reports, The Canton, Mass.,-based, Dunkin Brands Group (NASDAQ:DNKN) earnings surged in the latest quarter helped by bigger royalty income and franchise fees.
During the announcement the firm gave a disappointing earnings forecast for current year, anticipating adjusted per-share earnings of $2.34 to $2.37 on low-to-mid single digit surge in revenue. Analysts in the meantime were predicting per-share earnings of $2.41 on revenue growth of 3%.
Amid constant fall in foot traffic at its restaurants, Dunkin’ Brands has been modifying its business model to become less reliant on store visits and more dependent on royalties and packaged products sales.
Meanwhile Dunkin Brands Group (NASDAQ:DNKN) also traded off its outstanding company-operated stores during the quarter and is now 100% franchised. Also, starting this week, Dunkin branded ready-to-drink coffee brews are becoming available in grocery stores and other mass merchandisers.
According to results, Company’s same-store sales at Dunkin’ Donuts shops in the U.S. surged 1.9% in the three month period, lesser than Consensus Metrix’s prospects of 2.1% growth, while domestic same-store Baskin-Robbins sales beaten predictions, falling 0.9% in contrast with the expected 1.1% drop.
Including everything, Dunkin’ Brands Group had a profit of $56.1 million, or 61 cents a share, in contrast with a loss of $8.9 million, or 10 cents a share, year over year. Excluding certain items, earnings surged 64 cents from 52 cents.
Year before similar quarter suffered through an impairment charge related to the company’s Japan venture.
Furthermore revenue, which eliminates franchise sales, surged 5.8% to $215.7 million. Total systemwide sales go up 12% to $2.83 billion. Systemwide sales comprised sales at franchisee- and company-operated restaurants, including joint ventures. However Analysts were expecting earnings of 61 cents on $215.5 million in revenue.