News

Dunkin' credits espresso, power menu sales with Q2 earnings boost

August 1, 2019

Dunkin' and Baskin-Robbins parent, Dunkin' Brands turned in Q2 adjusted earnings that beat analysts' expectations, though the company's ice cream-related business is diminishing in the summer heat. Dunkin' reported adjusted earnings per share of 86 cents (analysts averaged 82 cents), but the company's overall revenue — though up 2.5% from last year, still fell short of the $360.5 million anticipated by coming in at $359.3 million, according to results released today. Dunkin' U.S. comp store sales grew 1.7%, but Baskin-Robbins U.S. comp sales fell 1.4% for the second quarter. 

Other key highlights include: 

• 11.7% increase in diluted adjust EPS to 86 cents.
• 3.8% global systemwide sales growth. 
• 7.7% growth in operating income to $8.8 million. 
• 1.4% drop in net income to $0.9 million.  
• 109 new stores worldwide, including 46 new U.S. Dunkin' units. 

"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," Dunkin' Brands CEO and Dunkin' U.S. President David Hoffmann said in the released results. "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. 

"Additionally, as a result of a highly-collaborative process with our franchisees, the Next Generation restaurant design, with nearly 300 already in the marketplace, is now the standard image for all new builds and remodels. This new store design takes our commitment to serving 'great coffee, fast' to the next level through an optimized mobile order pick-up experience, iced beverage tap system, and drive-thru enhancements that make it even easier to use Dunkin' on-the-go."

The company attributed its global sales growth to worldwide store development along with comp sales growth, while those increased sales were credited to higher average ticket totals, despite less traffic at the chain. The company said waning traffic was the main cause of sales declines at Baskin-Robbins U.S. though ticket totals increased due to what leadership said were strategic pricing increases. 

The company's board also declared a $0.375 quarterly cash dividend per common stock share for shareholders of record on Sept. 3, to be paid Sept. 12.