CANTON, Mass. – Dunkin’ Brands Group Inc. reported a profit of $52.3 million in the first quarter of 2019, or 63 cents per diluted share, a 4.3% increase from a $50.2 million profit, or 57 cents per diluted share, one year prior according to a filing Thursday with the Securities and Exchange Commission.
Quarterly revenue was $319.1 million, a 5.9% increase year over year. The company said that sales growth was attributable to global store development and increased comparable-store sales of 2.4 percent over the year in its United States’ Dunkin’ stores, the largest amount in four years. The company credited its offering of espresso and frozen beverages, as well as its breakfast sandwich platform for increased sales. The sales growth at Dunkin’ stores was partially offset by a decline in traffic to the stores, according to the company.
Comparable-store sales for Dunkin’ International stores increased 2.9%, while comparable-store sales for both U.S. and International Baskin-Robbins stores fell 2.8% and 2%, respectively.
“While we are still in the early innings of the implementation of our Blueprint for Growth, Dunkin’ U.S. delivered a strong first quarter, including 5.5 percent systemwide sales growth,” said David Hoffmann, Dunkin’ Brands CEO and president of Dunkin’ U.S., in the earnings release. “This solid performance, across both morning and afternoon, was driven by consistent, compelling national value promotions and continued beverage sales momentum. In particular, the relaunch of our highly successful handcrafted espresso platform, without impacting our trademark speed of service, has demonstrated our ability to deliver on the commitment of ‘great coffee fast.’ ”
Segment figures:
The Dunkin’ U.S. segment reported a segment profit of $111 million in the first quarter, an increase of 5.7% year over year. Segment revenue increased 7% in that time to $149.7 million. The increase was driven by growth in royalty and rental income, offset by a decline in franchise fees. Including figures from franchisee-operated stores, which are not recorded as part of Dunkin’ Brands revenue, total Dunkin’ U.S. revenue came to $2.1 billion for the quarter, an increase of 5.5% year over year. There were 34 net openings in the quarter domestically.
The Dunkin’ International segment had a $4.8 million segment profit in the quarter, a 50.7% increase year over year. Segment revenue increased 27.7% in that time to $6.9 million. Systemwide sales (those not including franchisee-operated stores) increased 4.6% year over year to $198.9 million. The segment had a net closing of five stores in the quarter.
Baskin-Robbins U.S. unit reported segment profit of $6.3 million in the first quarter, a decline of 12.6% year over year. Systemwide sales declined 3.2% to $128.5 million. The segment had a net closing of three stores in the quarter.
Baskin-Robbins International segment profit was $7.8 million in the quarter, a 4.9% increase year over year. Segment revenue declined 1.2% in that time to $25.6 million. Systemwide sales declined 2% to $314.6 million. The segment had a net closing of 18 stores in the quarter.
Chris Bergenheim is the PBN web editor. You may reach him at Bergeheim@PBN.com.
