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Dunkin’ Brands reports 2Q revenue down 20%, eyes closure of 800 US locations

Dunkin' Brands

CANTON, Mass., U.S. – Dunkin’ Brands Group, the parent company of Dunkin’ and Baskin-Robbins, said Thursday second-quarter revenue fell 20% as fewer customers visited its stores due to the coronavirus pandemic. The company also said it expects to close around 800 U.S. locations this year as it has been evaluating its most productive cafes.

Dunkin’ U.S. comparable store sales decline of 18.7%, which improved sequentially in each month of the quarter

Baskin-Robbins U.S. comparable store sales decline of 6.0%, which improved sequentially in each month of the quarter

The company reported net closures of 229 Dunkin’ and Baskin-Robbins locations globally, inclusive of 180 Baskin-Robbins International locations; net closure of 40 Dunkin’ U.S. locations, inclusive of the closure of 10 Speedway locations

Revenues decreased by 20.0%. Diluted EPS decreased by 38.0% to $0.44. Diluted adjusted EPS decreased by 43.0% to $0.49.

The Company’s Board of Directors announced the reinstatement of its dividend program.

The Company ended the second quarter with $291 million of unrestricted cash held in the U.S., excluding cash reserved for gift cards and advertising funds

“For Dunkin’ U.S., same store sales improved sequentially throughout the quarter, largely as a result of our ability to pivot quickly and introduce new menu items designed to appeal to customers who are now visiting us later in the day. Our digital platform — a cornerstone of our Dunkin’ Blueprint for Growth — drove significant customer engagement and rapid recovery during the quarter, and last week we announced the hiring of a Chief Digital & Strategy Officer to accelerate our digital future,” said Dave Hoffmann, Chief Executive Officer, Dunkin’ Brands Group, Inc.

“We are extremely proud of our great franchisees who kept the vast majority of our restaurants open during the quarter and really stepped up with a sense of urgency and grit to keep their team members employed, our guests served, and their communities running.”

“This morning we announced that our Board of Directors has reinstated our dividend program, and authorized and declared a quarterly dividend for the third quarter. The reinstatement of our dividend reflects the overall financial health of Dunkin’ Brands and our commitment to shareholders,” said Kate Jaspon, Chief Financial Officer, Dunkin’ Brands Group, Inc.

“In addition, the Company repaid all of its borrowings under its variable funding notes during the second quarter and ended the quarter with a strong cash balance to provide ongoing financial flexibility. Given the strength and stability of our franchised model, coupled with our franchisees’ ongoing business recovery, we remain confident in our ability to maintain appropriate liquidity through the current crisis.”