Dunkin Brands Beats Q1 Expectations

reported stronger-than-expected results for the first quarter and lifted its 2015 guidance. The Canton, Massachusetts-based company posted quarterly earnings of $25.6 million, or $0.25 per share, compared to $23 million, or $0.21 per share, in the year-ago period. Excluding one-time items, the company's earnings rose 21.2 percent to $0.40 per share. Its revenue climbed 8.1 percent year-over-year to $185.9 million. However, analysts were expecting earnings of $0.35 per share on revenue of $180.68 million. Dunkin' Donuts U.S. comparable store sales rose 2.7 percent, while Baskin-Robbins U.S. comparable store sales climbed 8.0 percent during the quarter. Dunkin' Donuts U.S. revenue climbed 6.9 percent year-over-year to $133.9 million in the first quarter, while Baskin-Robbins U.S. revenue rose 8.2 percent to $9.9 million. Adjusted operating income surged 15.8 percent in the latest quarter. The company's board declared a Q2 cash dividend of $0.265 per share. Dunkin also announced the retirement of John Costello, President, Global Marketing & Innovation in the middle part of 2016. The average estimate among 10 Estimize users was for earnings of $0.37 per share and revenue of $182.18 million. "This was a really strong quarter and we are delighted with the performance of our product and marketing programs given the severe weather that we experienced in many of the markets where our restaurants are located. Our Dunkin' Donuts U.S. franchisees got the year off to a strong start by demonstrating great flexibility and resiliency in dealing with the challenging circumstances," said Dunkin' Brands Chairman and Chief Executive Officer Nigel Travis. For the year, the company now expects adjusted earnings of $1.87 to $1.91 per share, versus its earlier forecast of $1.83 to $1.87 per share. The company now projects revenue growth of 6 percent to 8 percent, up from 5 percent to 7 percent growth. Dunkin Brands shares rose 1.82 percent to $48.59 in pre-market trading.