News

Dunkin’ Brands’ 2010 numbers up

March 22, 2011

Canton, Mass.-based Dunkin’ Brands Inc., parent company of Dunkin’ Donuts and Baskin-Robbins, reported results for fiscal year 2010 ended Dec. 25.

The results included a systemwide sales increase of 6.7 percent over FY '09.

Domestically, U.S. comparable-store sales from the previous year were up 1.6 percent. Dunkin’ Donuts turned in a strong year with a 1.6 percent increase, versus Baskin-Robbins’ comparable store sales in the U.S. at a decline of 5.2 percent.

Both brands did well internationally. Dunkin Donuts’ points of distribution rose 6.2 percent to 9,760 total units, while Baskin-Robbins was up 3.6 percent to 6,433 units.

Full year 2010 financial highlights included:

• Global system-wide sales were approximately $7.7 billion compared to $7.2 billion for fiscal 2009, representing approximately a 7 percent year-over-year increase;
• Consolidated U.S. comparable store sales were 1.6 percent;
• Dunkin' Brands franchisees and licensees opened 800 global net new Dunkin' Donuts and Baskin-Robbins locations, bringing total points of distribution to 16,193 in 52 countries;
• Total revenues were $577.1 million compared to $538.1 million for fiscal 2009, an increase of approximately seven percent;
• Net income for fiscal 2010 was $26.9 million as compared to $35 million in fiscal 2009, representing approximately a 23 percent decrease, primarily impacted by non-recurring pre-tax expenses of $62.0 million related to debt extinguishment, partially offset by a decrease in the company's effective tax rate;
• Adjusted EBITDA was $282 million, up slightly compared with $279.2 million in 2009.

"As a result of a disciplined, operations-focused approach, Dunkin' Brands had strong system-wide sales and revenue growth as well as industry-leading new store development in 2010," said Nigel Travis, CEO, Dunkin' Brands Inc. and president, Dunkin' Donuts. "Our brand-differentiating marketing and product innovations, continued growth in U.S. beverage sales, and strong international sales were all key contributors to our success."

Refinancing boosts

In November 2010, Dunkin' Brands completed a refinancing comprised of a $1.25 billion term loan and $625 million of senior notes. The proceeds raised were used to repay in full Dunkin' Brands' outstanding securitization debt and related refinancing expenses, as well as a cash dividend to Dunkin' Brands' shareholders.

In February 2011, the company completed a re-pricing of its outstanding $1.25 billion term loan. Additionally, the company increased the size of its term loan from $1.25 billion to $1.4 billion, with the incremental proceeds being used to repay an equal amount of the company's senior notes, leaving its total debt unchanged.

"The re-pricing and reallocation of debt will save the company approximately $26 million in cash interest annually," said Neil Moses, CFO. "Overall it was a strong year for Dunkin' Brands; we continued to enhance the guest experience with operational improvements and to demonstrate the strength of our franchise business model with solid financial results."