News

Dunkin' Brands reports Q4, 2014 fiscal results

Dunkin' Brands reported Q4 and 2014 fiscal year results.

February 5, 2015

Dunkin' Brands reported Q4 and 2014 fiscal year results.

Q4 highlights include:

• Dunkin' Donuts U.S. comparable store sales growth of 1.4 percent
• Added 260 net new restaurants worldwide including 141 net new Dunkin' Donuts in the U.S.
• Revenue increased 5.5 percent
• Adjusted operating income increased 8.4 percent; adjusted operating income margin of 50.1 percent
• Diluted adjusted EPS increased 7.0 percent to $0.46

Fiscal year 2014 highlights include:

• Dunkin' Donuts U.S. comparable store sales growth of 1.6 percent
• Added 704 net new restaurants worldwide including 405 net new Dunkin' Donuts in the U.S.
• Positive Baskin-Robbins U.S. net store growth
• Continued challenges facing the Company's Joint Venture in Japan
• Revenue increased 4.9 percent
• Adjusted operating income increased 7.5 percent; adjusted operating income margin of 48.9 percent
• Diluted adjusted EPS increased 13.7 percent to $1.74

Company news:

• Board of Directors declares $0.265 first quarter dividend representing a 15 percent increase over the Company's fourth quarter 2014 dividend
• Board of Directors authorized new $700 million share repurchase program
• Dunkin' Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' Donuts (DD) and Baskin-Robbins (BR), today reported results for the fourth quarter ended December 27, 2014.

"Highlights from our performance in 2014 included: strong domestic restaurant level unit economics;  robust U.S. restaurant development for both brands, including the opening of our first traditional Dunkin' Donuts restaurants in California; growing transactions in the Dunkin' Donuts U.S. business in the face of macroeconomic and competitive headwinds; the launch of both the DD Perks loyalty program, which now has more than 2.5 million members, and Baskin-Robbins online cake ordering; and progress with the retooling of our international businesses as demonstrated by the signing of significant international development agreements in Sweden, Austria, and China," said Nigel Travis, Chairman & CEO, Dunkin' Brands Group, Inc. in a press release.  "Our nearly 100-percent franchised business model delivered another year of double-digit adjusted earnings per share growth, and most notably, more than 50 percent free cash flow growth. While our earnings growth expectations for 2015 are below our longer-term targets, we are committed to returning to double-digit growth in subsequent years."

"We are very pleased with our recently completed debt refinancing which increases our financial flexibility and provides us with the stability of fixed rate interest over the next several years," said Paul Carbone, Chief Financial Officer, Dunkin' Brands Group, Inc., in a statement.  "As a demonstration of our commitment to returning capital to our shareholders, our Board of Directors authorized a new share repurchase program of up to an aggregate of$700 million and increased our quarterly dividend by 15 percent over the prior quarter."