CANTON, Mass. – Dunkin’ Brands Group Inc. reported a profit of $59.6 million in the second quarter, a 1.4% decline year over year, according to the company Friday.
Earnings per diluted share were 71 cents, compared with 72 cents one year prior.
Despite the decline in profit, company revenue increased 2.5% year over year in the quarter to $359.3 million.
The company reported that it had opened a net of 46 stores worldwide across its Dunkin’ stores and Baskin-Robbins stores.
“Continuing the momentum established earlier in the year, our second quarter performance was highlighted by double-digit sales growth of espresso, our national value platforms, and terrific consumer reception to our latest menu innovation, our better-for-you Power Platform,” said David Hoffmann, Dunkin’ Brands CEO and president of Dunkin’ U.S. “We’re attracting a new consumer with both espresso and our Power Platform and will continue to bring more on-trend innovation to fuel guests throughout the day.”
Segment performance:
Dunkin U.S.
The company’s Dunkin’ U.S. segment reported a $166.6 million revenue in the second quarter, a 5.8% increase year over year. The segment had a 5.2% year-over-year increase in royalty income for the quarter to $131.7 million as well as a 15% increase in rental income to $30.5 million. Franchise fee collection declined 28.3% year over year to $3.4 million.
The company said the decline in franchise fees were attributable to franchisee incentives related to the company’s Dunkin’ U.S. Blueprint for Growth plan. Same store sales in the U.S. segment increased 1.7% year over year.
Segment profit also increased, ticking up 6.3% to $127.1 million.
Dunkin’ International
The company’s Dunkin’ International segment reported a 42.1% year over year increase in revenue to $7.5 million – largely attributable to an increase in franchise fees. Segment profit increased 56.6% year over year to $5.5 million. The company said the increase and profit and revenue was due largely to deferred revenue from the closure of an international market.
Same store sales in the international segment increased 5.6% year over year.
Baskin-Robbins U.S.
The segment reported a 1.3% increase in revenue from the year prior to $14.3 million. Segment profit declined 5.1% year over year to $10.1 million. Same store sales declined 1.4% year over year. The revenue increase for the quarter was credited to an increase in ice cream sales and rental income.
Baskin-Robbins International
Revenue for the international ice cream segment declined 3.9% year over year to $32.7 million. Segment profit increased 4.9% in that time to $12.1 million. Same store sales increased 3.2% year over year. The company said that ice cream sales in international markets declined and that the downtrend was offset by deferred revenue from closed international markets.
