Dunkin' Brands 2Q Revenue Rises 2.3%


Dunkin' Brands reported lower-than-expected quarterly revenue as fewer customers visited its Dunkin' Donuts and Baskin Robbins restaurants in the United States.

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The company has been facing intense competition from restaurant operators such as Yum Brands Inc's Taco Bell and McDonald's Corp, whose breakfast items have found favor with customers.

Taco Bell launched a $1 breakfast menu in March, while McDonald's started offering all-day breakfast in October.

Second-quarter comparable sales rose 0.5 percent at Dunkin' Donuts U.S. restaurants, which accounted for three-quarters of the company's 2015 revenue. Analysts on average had expected a 0.9 percent rise, according to Consensus Metrix.

Comparable sales at its U.S. Baskin Robbins outlets rose 0.6 percent, widely missing the average estimate of a 3.4 percent rise.

Dunkin' Brands cut its full-year sales growth forecast to 3-5 percent from 4-6 percent, citing the sale of company-owned restaurants.

Total sales increased 2.3 percent to $216.3 million in the quarter ended June 25, but missed the average analyst estimate of $219.9 million, according to Thomson Reuters I/B/E/S.

Net income attributable to Dunkin' Brands rose 17.3 percent to $49.6 million, or 57 cents per share, topping the average estimate by a cent.

(Reporting by Gayathree Ganesan in Bengaluru; Editing by Kirti Pandey)