Analysts forecast that Dunkin Brands Group Inc will post $1.92 earnings per share for the current year.
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Speedway will still be a Dunkin’ Donuts franchisee after the move, the company said.
Despite all the technology and experiments that get investors buying other brands and the rosy view of the future, the numbers reflect a distinct slowdown for the chain of more than 19,095 stores worldwide. Zacks downgraded Dunkin Brands Group from a “buy” rating to a “hold” rating in a research note on Wednesday, July 1st. Analysts also expect revenue to rise about 8 per cent to $808.1 million.
Dunkin Brands Group Incorporated (NASDAQ:DNKN) shares will open today at after closing yesterday at 49.00.
Repeating a forecast that it first gave in April, Dunkin’ Brands said Thursday that earnings this year will be $1.87 to $1.91 a share, excluding a few items. Dunkin’ Donuts CEO Nigel Travis called the idea for such a wage “outrageous”.
One explanation for Dunkin’ Donuts’ slower growth is the extensive competition among fast food restaurants for business from the breakfast crowd. It’s also using DD Perks to increase afternoon sales, for instance.
Dunkin’ said the restaurants being closed accounted for 0.1 percent of its USA sales.
Dunkin’ Donuts will roll out delivery in the Dallas market in the fourth quarter through a pair of companies, Doordash and a local delivery company, Favor. According to the most recently available information, the company is expected to announce earnings for the next fiscal quarter on or around 2015-10-22 for the period ending on 2015-09-30.
And via the investor presentation, it’s clear that Dunkin’ Brands has not been spared from numerous challenges U.S. companies have faced this year.
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Now what: Going forward, Dunkin’ also reiterated guidance for development of 410 to 440 net new Dunkin’ Donuts restaurants in the USA this year – though this doesn’t include impending plans to close 100 franchise-owned, Speedway-operated self-service locations. It’s about 11,310 Dunkin’ Donuts and over 7,552 Baskin-Robbins points of distribution.
