Dunkin' Brands 2Q Net Climbs on Sales Growth

By Retail FOXBusiness

Dunkin Brands Earnings

The parent company of Dunkin Donuts and Baskin Robbins has missed earnings estimates.

Dunkin’ Brands (DNKN) reported on Thursday that its second-quarter net income more than doubled amid lower costs and mostly better same-store sales.

Continue Reading Below

The Dunkin’ Donuts and Baskin-Robbins parent, which has turned its attention to expanding the doughnut and coffee chain westward in the U.S., also announced that it has a total commitment for 45 stores to open in California in 2015.

Meanwhile, the ice cream chain has struggled domestically and is the subject of a turnaround effort.

The Canton, Mass.-based company said its profit was $40.8 million, or 38 cents a share, well beyond the $18.5 million profit, or 15 cents a share, in the year-ago period that included a $20.7 million increase in a litigation reserve.

Excluding the litigation cost and one-time items in the latest period, earnings rose to 41 cents from 33 cents.

Revenue climbed 5.9% to $182.5 million. Total operating costs and expenses fell 11%.

Continue Reading Below

Analysts were looking for per-share earnings of 40 cents and revenue of $183 million.

Dunkin’ Donuts saw a 4% increase in U.S. same-store sales, while Baskin-Robbins recorded 1.6% growth.

Internationally, comparable store sales were down 1.7% at Dunkin’ Donuts but up 2.6% at Baskin-Robbins.

Shares were down 25 cents at $42.04 in early morning trading.

What do you think?

Click the button below to comment on this article.