Dunkin' Donuts Parent's Stock Falls After Sales Miss Expectations

Shares of Dunkin' Brands Group Inc. dropped 1.5% in premarket trade Thursday, after the Dunkin' Donuts and Baskin-Robbins parent's sales miss offset a profit beat. Net income rose to $47.5 million, or 51 cents a share, from $37.2 million, or 40 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 54 cents, above the FactSet consensus of 48 cents. Revenue rose to $190.7 million from $189.8 million, but missed the FactSet consensus of $192.3 million. Same-store sales of U.S. Dunkin' Donuts were flat, missing the FactSet consensus of 1.7% growth, while a 2.4% decline for U.S. Baskin-Robbins missed expectations of a 1.5% increase. The company said it continues to expected same-store sales growth in the "low single digit" percentage range for its U.S. Dunkin' Donuts and Baskin-Robbins stores. "While our Dunkin' Donuts U.S. comparable stores sales were flat in the quarter, these results, delivered against an increasingly-challenging environment for retail and restaurants, demonstrate the benefits of our asset-light, 100-percent franchised business model," said Chief Executive Nigel Travis. The stock has gained 7.5% year to date through Wednesday, while the S&P 500 has advanced 6.7%.