CANTON, Mass., U.S. – Dunkin’ Brands Group, Inc., the parent company of Dunkin’ Donuts (DD) and Baskin-Robbins (BR), yesterday reported results for the second quarter ended July 1, 2017. Second quarter highlights include:
- Dunkin’ Donuts U.S. comparable store sales growth of 0.8%
- Baskin-Robbins U.S. comparable store sales decline of 0.9%
- Added 64 net new Dunkin’ Donuts and 12 net new Baskin-Robbins in the U.S. and 57 net new international locations
- Revenues increased 1.0%
- Diluted EPS increased by $0.06 to $0.60
- Diluted adjusted EPS increased by $0.07 to $0.64
“We are excited about the progress we have made on our multi-year plan to transform Dunkin’ Donuts U.S. into a beverage-led, on-the-go brand.
Together with our franchisees, we are laser-focused on delivering what matters most to consumers, including: menu innovation; unparalleled convenience driven by digital leadership; restaurant excellence and simplification; and broad accessibility to our products through strategic restaurant development and the sale of our products in other channels,” said Nigel Travis, Dunkin’ Brands Chairman and CEO.
“As evidence of our progress, we will be expanding our menu simplification test to 1,000 locations by October of this year.”
“Our Dunkin’ Donuts U.S. franchisees have invested more than $1 billion into their restaurants over the past two years and have exceeded our expectations for renewal fees year-to-date,” said Kate Jaspon, Chief Financial Officer, Dunkin’ Brands Group, Inc.
“This demonstrates a commitment to and confidence in the Dunkin’ Donuts brand, but with a new store model on the horizon, a large number of restaurant remodels due, and more investment required in equipment and technology, we are working with our franchisees to plan the most effective use of their capital expenditures so that we strike the right balance between driving smart growth and ensuring the current store base meets consumers’ changing needs.
As such, while we are not changing 2017 guidance for revenue, operating income or earnings-per-share, we now expect Dunkin’ Donuts U.S. franchisees to open between 330 to 350 net new restaurants this year. We still expect to finish the year as one of the fastest growing brands in the U.S. restaurant industry both in terms of net store growth and increase in systemwide sales.”