Dunkin' Profit Surges, But Revenue Comes Up Short

Published October 25, 2012

| Reuters

Dunkin' Brands Group Inc's (DNKN) profit quadrupled, topping Wall Street estimates, but revenue fell short of forecasts as sales cooled at established U.S. Dunkin' Donuts cafes.

Domestic Dunkin' Donuts shops account for almost 75 percent of the company's revenue and more than 80 percent of its profit.

During the third quarter, the business reported a 2.8 percent rise in same-store sales compared with 6 percent growth a year earlier.

The Canton, Massachusetts-based company, which also owns the Baskin-Robbins ice cream brand, said net income rose to $29.5 million from $7.4 million a year earlier.

Excluding one-time items, the company earned 37 cents per share.

Revenue rose 5 percent to $171.7 million.

Analysts on average were expecting earnings of 35 cents per share on revenue of $174.9 million, according to Thomson Reuters I/B/E/S.

Dunkin' shares closed at $30.81 on Wednesday on the Nasdaq.

The stock sold at $19 per share last July in one of the restaurant industry's most successful initial public offerings.

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