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UPDATE: Dunkin' Brands Q4 Profit Misses Expectations


Dunkin' Brands Group Inc. (NASDAQ: DNKN) reported weaker-than-expected earnings for the fourth quarter.

Net income attributable to Dunkin' Brands climbed to $52.5 million, or $0.50 per share, up from $42.1 million, or $0.39 per share, in the year-ago period. Its adjusted earnings came in at $0.46 per share.

Its revenue climbed 5.5% to $193.2 million. However, analysts were expecting earnings of $0.47 per share on revenue of $191.37 million.

Comparable sales at its Dunkin' Donuts stores climbed 1.4% in the US.

Dunkin' Donuts U.S. revenue climbed 3.9% to $144.1 million in the quarter, while international revenue surged 19.7% to $6.7 million.

Baskin-Robbins US revenue rose 3.9% to $8.5 million, while international revenue surged 9.8% to $29.9 million in the quarter.

The company's board declared a Q1 dividend of $0.265 per share, a 15% gain from the fourth quarter dividend. The company's board also approved a new $700 million share repurchase program.

"Highlights from our performance in 2014 included: strong domestic restaurant level unit economics; robust U.S. restaurant development for both brands, including the opening of our first traditional Dunkin' Donuts restaurants in California; growing transactions in the Dunkin' Donuts U.S. business in the face of macroeconomic and competitive headwinds; the launch of both the DD Perks loyalty program, which now has more than 2.5 million members, and Baskin-Robbins online cake ordering; and progress with the retooling of our international businesses as demonstrated by the signing of significant international development agreements in Sweden, Austria, and China," said Nigel Travis, Chairman & CEO, Dunkin' Brands Group, Inc.

Dunkin' Brands shares rose 0.47% to close at $46.60 yesterday.


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Posted-In: profitEarnings News