Dunkin Brands Group Inc : Post Earnings Coverage as Dunkin' Brands' Quarterly EPS Surged 27.5%

Upcoming AWS Coverage on Jack in the Box Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 23, 2017 / Active Wall St. announces its post-earnings coverage on Dunkin' Brands Group, Inc. (NASDAQ: DNKN). The Company reported its first quarter fiscal 2017 financial results on May 04, 2017. The owner of the Dunkin' Donuts and Baskin-Robbins chains exceeded earnings expectations. Register with us now for your free membership at:

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One of Dunkin' Brands' competitors within the Restaurants space, Jack in the Box Inc. (NASDAQ: JACK), reported its Q2 FY17 operating results after market close on Tuesday, May 16, 2017. AWS will be initiating a research report on Jack in the Box in the coming days.

Today, AWS is promoting its earnings coverage on DNKN; touching on JACK. Get our free coverage by signing up to

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Earnings Reviewed

For the three months ended April 01, 2017, Dunkin' Brands revenues increased $0.9 million, or 0.5% to $190.7 million, compared to revenue of $189.8 million for the prior year's same period, primarily due to increased royalty income as a result of systemwide sales growth, as well as an increase in rental income due to an increase in the number of leases for franchised locations. These increases in revenues were offset by a decrease in sales at Company-operated restaurants as there were no Company-operated points of distribution during the reported quarter compared to 41 Company-operated points of distribution in the prior year period. The Company's revenue numbers missed analysts' consensus of $192.3 million.

For Q1 2017, Dunkin' Brands' operating income and adjusted operating income jumped 7.0% to $491.3 million and 5.9% to $96.7 million, respectively, from the prior year's same period, primarily as a result of the increase in royalty income. Additionally, Q1 2016 was unfavorably impacted by the operating results of Company-operated restaurants.

Dunkin' Brands' net income and adjusted net income for Q1 2017 increased by 27.8% to $47.5 million and 24.6% to $50.7 million, respectively, compared to the prior year's comparable period primarily as a result of the increases in operating income and adjusted operating income as well as a decrease in income tax expense. Diluted earnings per share and diluted adjusted earnings per share for Q1 2017 increased by 27.5% to $0.51 and 22.7% to $0.54, respectively, compared to the prior year corresponding period. The Company's earnings numbers surpassed Wall Street's expectations of $0.48 per share.

Segment Results

For Q1 2017, Dunkin' Donuts US revenues of $142.0 million represented an increase of 2.3% on a y-o-y basis. The increase was primarily a result of increases in royalty income driven by systemwide sales growth, franchise fees due to an increase in renewal income, and rental income driven by an increase in the number of leases for franchised locations.

Dunkin' Donuts US segment profit in Q1 2017 increased to $108.0 million, an increase of $7.5 million compared to the year ago same period, primarily driven by the increases in royalty income and franchise fees.

Dunkin' Donuts International Q1 2017 revenues of $5.3 million represented a decrease of 27.0% from Q1 2016. The decrease in revenues was primarily a result of a decline in franchise fees as the prior year's same period included a significant market development fee recognized upon entry into a new market.

The segment's profit for Dunkin' Donuts International decreased $1.87 million to $1.89 million in the reported quarter primarily as a result of the decrease in revenues.

During Q1 2017, Dunkin' Brands' Baskin-Robbins US revenues and the segment's profit totaled $10.5 million and $7.3 million, respectively, almost consistent with the prior year's comparable period as decreases in other revenues and franchise fees were offset by an increase in royalty income.

Baskin-Robbins International systemwide sales increased 5.0% in the reported quarter compared to the prior year period driven by sales growth in South Korea, Asia, and Canada, offset by declines in the Middle-East and Japan. Sales in both South Korea and Japan were positively impacted by favorable foreign exchange rates. On a constant currency basis, systemwide sales increased by approximately 3%.

For Q1 2017, Baskin-Robbins International revenues decreased 2.8% from the prior year's same period to $26.1 million due primarily to a decrease in sales of ice cream products to the Company's licensees in the Middle-East. The division's segment profit decreased 4.8% from the prior year comparable period to $8.0 million as a result of a decrease in net margin on ice cream driven by the decrease in sales.

Store Update

In Q1 2017, Dunkin' Brands franchisees and licensees opened 29 net new restaurants around the globe. This included 56 net new Dunkin' Donuts US locations and 1 net new Baskin-Robbins US location, offset by the net closure of 27 Dunkin' Donuts International locations and 1 Baskin-Robbins International location. Additionally, Dunkin' Donuts US franchisees remodeled 81 restaurants and Baskin-Robbins US franchisees remodeled 36 restaurants during the reported quarter.

Company Updates

Dunkin' Brands announced that its Board of Directors declared a cash dividend of $0.323 per share, payable on June 14, 2017, to shareholders of record as of the close of business on June 05, 2017.

Stock Performance

At the closing bell, on Monday, May 22, 2017, Dunkin' Brands' stock slightly fell 0.09%, ending the trading session at $55.64. A total volume of 774.55 thousand shares were traded at the end of the day. In the last six months and previous twelve months, shares of the Company have surged 11.48% and 27.67%, respectively. Moreover, the stock gained 6.10% since the start of the year. The stock is trading at a PE ratio of 25.00 and has a dividend yield of 2.32%.

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