Market Overview

Investors Aren't Impressed With Dunkin' Brands Q4 And Guidance, Shares Down 3%

Share:

Shares of Dunkin Brands Group Inc (NASDAQ: DNKN) were trading lower by more than 3 percent early Thursday morning after the company reported its fourth-quarter results.

Dunkin' Brands said that it earned $0.52 per share on revenue of $203.8 million. Wall Street analysts were expecting the company to earn $0.50 per share on revenue of $203.31 million.

The company noted that its Dunkin' Donuts U.S. comparable store sales declined 0.8 percent in the fourth quarter, while Baskin-Robbins' U.S. comparable store sales grew 4.4 percent. For the full fiscal year, Dunkin' Donuts U.S. comparable store sales grew 1.4 percent while Baskin-Robbins comparable store sales growth rose 6.1 percent.

Dunkin Brands added 172 net new restaurants during the fourth quarter and 495 net new restaurants during the full fiscal year.

Looking forward to fiscal 2016, Dunkin Brands said that it expects to earn $2.17 to $2.19 per share on revenue of $843 million to $860. Wall Street analysts were already estimating the company to earn $2.18 per share on revenue of $852 million.

Finally, Dunkin Brands' board of directors authorized an increase to the company's quarterly dividend from $0.27 per share to $0.30 per share.

Related Link: Dunkin' Donuts Scores Partnership With USA Hockey

"For the year, we met or exceeded our financial performance targets including delivering nearly 10 percent adjusted operating income growth and 11 percent adjusted earnings per share growth. In addition to these achievements, we grew the Dunkin' Donuts U.S. restaurant footprint at greater than 5 percent, launched Dunkin' K-Cup® pods into thousands of retail and online outlets nationwide, continued the remarkable turnaround of Baskin-Robbins U.S., and completed a successful debt refinancing at an attractive fixed interest rate," said Dunkin' Brands Chairman and Chief Executive Officer Nigel Travis.

"The Dunkin' Donuts U.S. comparable store sales growth performance was disappointing. To help drive positive Dunkin' Donuts transactions in 2016 and the years beyond, we have begun executing against a strategic plan designed to enable us to deliver an even better guest experience through stronger product innovation, leading technologies to enhance convenience such as on-the-go mobile ordering, and targeted, compelling value offers."

 

Related Articles (DNKN)

View Comments and Join the Discussion!

Posted-In: Earnings Long Ideas News Guidance Restaurants Movers Trading Ideas General