Dunkin' Brands Reports Fourth Quarter And Fiscal Year 2017 Results
Source Dunkin' Brands Group, Inc.
CANTON, Mass., Feb. 6, 2018 /PRNewswire/ --
Fiscal year 2017 highlights include:
- Dunkin' Donuts U.S. comparable store sales growth of 0.6%
- Flat Baskin-Robbins U.S. comparable store sales growth
- Added 440 net new restaurants worldwide, including 313 net new Dunkin' Donuts in the U.S.
- Revenues increased 3.8%, or 4.9% on a 52-week basis
- Diluted EPS increased 80.1%, or 82.7% on a 52-week basis, to $3.80
- Diluted adjusted EPS increased 7.5%, or 9.0% on a 52-week basis, to $2.43
Fourth quarter highlights include:
- All four business segments had positive comparable store sales
- Dunkin' Donuts U.S. comparable store sales growth of 0.8%
- Baskin-Robbins U.S. comparable store sales growth of 5.1%
- Added 141 net new restaurants worldwide, including 126 net new Dunkin' Donuts in the U.S.
- Revenues increased 5.3%, or 9.8% on a 13-week basis
- Diluted EPS increased 249.2%, or 267.2% on a 13-week basis, to $2.13
- Diluted adjusted EPS unchanged at $0.64, or increased 4.9% on a 13-week basis
Dunkin' Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' Donuts (DD) and Baskin-Robbins (BR), today reported results for the 13-week fiscal fourth quarter and 52-week fiscal year ended December 30, 2017.
"In 2017, we made significant progress positioning Dunkin' Donuts as America's most-loved, beverage-led, on-the-go brand. Morning comparable store sales increased each quarter sequentially, and we had our highest quarterly beverage comparable sales of the year in the fourth quarter of 2017, driven by iced coffee and Frozen Dunkin' Coffee. Our strategic focus on morning sales yielded improved customer counts in that critical daypart during the last three quarters of the year and we are actively working to drive afternoon traffic through p.m. beverages and food along with all-day value offers that kicked-off in January. Additionally, in 2017, we believe that Dunkin' Donuts was once again one of the fastest growing retail brands by unit count in the country," said Nigel Travis, Dunkin' Brands Chairman and CEO. "Other accomplishments during 2017 included adding more than two million members to the Perks loyalty program bringing total membership to approximately 8 million, increasing out-of-restaurant retail sales of Dunkin' branded consumer packaged goods by greater than 30 percent, and successfully testing a simplified menu across 1,000 restaurants. We strongly believe the simplified menu, which is expected to roll-out nationally by the end of the first quarter, will improve franchisees' profitability and enable us to better serve customers."
"We're pleased to have delivered our revenue, operating income, and earnings per share targets for 2017, and look forward to sharing our growth targets for 2018 and beyond at our upcoming investor day on February 8 in Boston," said Kate Jaspon, Dunkin' Brands Chief Financial Officer. "In January, we announced an approximately five percent reduction in our general and administrative expense target in 2018 to two percent of systemwide sales. We are also encouraged by the recently passed tax reform act which includes provisions that we expect to be favorable to the majority of our franchisees as well as net beneficial to Dunkin' Brands."
