The company also declared a quarterly dividend of 30 cents per share. At Baskin-Robbins, U.S. average tickets were also higher, driven by cups and cones sales, especially for the brand’s new Warm Cookie Ice Cream Sandwich.
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Dunkin’ Brands Group Inc. reported weaker-than-expected second-quarter revenue yesterday, blaming in part franchisee price
increases that resulted in less foot traffic at its Dunkin’
Donuts and Baskin-Robbins restaurants. “This is probably one of the most hard things we’ve ever had to do – you’re changing a lifetime of how people order”, he said, noting it also was the brand’s biggest operational system change since the establishment of Dunkin’ drive-thru windows.
“Consistent with our asset light-business model we are selling many of our company-owned stores, the majority of which are in the Dallas market, and as a result, are updating our revenue growth target for 2016 to three to five percent from four to six percent”.
Global systemwide sales growth in the second quarter was primarily attributable to global store development and Dunkin’ Donuts U.S. comparable store sales growth (which includes stores open 78 weeks or more).
“We will probably end up, to be honest, with no company stores in the near future. Therefore, we are reaffirming all of our other targets for our 2016 performance”. That growth for USA stores last quarter came from higher average tickets, offset by less traffic.
In the USA, same-store sales rose 0.5 percent for Dunkin’ Donuts locations and 0.6 percent for Baskin-Robbins.
Though the company edged out profit expectations, shares slipped 4 percent before the opening bell Thursday after it trimmed its revenue growth expectations for the year. These increases were offset by fewer company-operated restaurant sales and fewer ice cream sales. Its shares have fallen nearly 15 percent over the past year.
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Over the last twelve months Dunkin Brands Group’s share price has decreased from 54.08 to 46.74, changing by -13.57%. Earnings per share were $0.57. It has approximately 11310 Dunkin’ Donuts and over 7552 Baskin-Robbins points of distribution.
