News

Dunkin' Donuts dividend payout exceeds expectations

February 9, 2017

 Dunkin' Brands Group reported this week that 2016 was a year of growth, which included a bump in the quarterly cash dividend to shareholders.

The parent company of Dunkin' Donuts and Baskin-Robbins said in a company press release that diluted EPS grew 95.4 percent this last quarter and 92.6 percent last fiscal year. The company's board declared a dividend of $0.3225 per share of common stock, which is a 7.5 percent increase over the prior quarter's dividend. The dividend payout is set for March 22 to all shareholders of record at the end of business on March 13, according to a company press release.

"This past year was one of significant achievement for Dunkin' Donuts U.S.," CEO and Dunkin' Brands Chairman Nigel Travis, said in the news release.  "We began executing against a six-part strategy to drive growth by positioning Dunkin' as a to-go, coffee beverages brand, and while much work remains, we made considerable progress with our plan, in particular with utilizing digital technology to drive customer loyalty and store traffic. 

Fiscal year 2016 highlights included:

• Dunkin' Donuts U.S. comparable store sales growth of 1.6 percent.
• Baskin-Robbins U.S. comparable store sales growth of 0.7 percent.
• Revenues grew 2.2 percent or 1.1 percent on a 52-week basis. 
• Diluted adjust EPS grew 17.1 percent to $2.26 or 15.5 percent to $2.23 on a 52-week basis. 
• 723 net new restaurants added worldwide, including 397 net new Dunkin' Donuts in the U.S.

Fourth quarter highlights included:

• Dunkin' Donuts U.S. comparable store sales growth of 1.9 percent.
• Baskin-Robbins U.S. comparable store sales decline of 0.9 percent. 
• Added 296 net new restaurants worldwide, including 199 net new Dunkin' Donuts in the U.S.
• Revenues increased 5.8 percent, or 1.5 percent on a 13-week basis.
• Diluted EPS increased $0.71 to $0.61, or $0.68 to $0.58 on a 13-week basis.
• Diluted adjusted EPS increased 23.1 percent to $0.64, or 17.3 percent to $0.61 on a 13-week basis.

"We now have more than 6 million Perks members, have launched On-The-Go ordering nationally, have grown mobile payments by nearly 70 percent, and had nearly $1 billion in system-wide sales on the Dunkin' Gift Card, the backbone of our digital ecosystem, as a form of payment," Nigel said. "Between retail sales of Dunkin' bottled iced coffee, K-Cups, bagged coffee and in-restaurant system-wide sales of ready-brewed coffee, we expect consumers to drink nearly 5 billion cups of Dunkin' Donuts coffee globally in 2017."