STRATEGIC PARTNERS
May 2, 2019
Dunkin' Brands Group Inc turned in a better-than-anticipated first quarter 2019 performance, which the company's board said allowed it to issue a quarterly cash dividend to shareholders of $0.375 per share of common stock, according to a news release.
Wall Street analysts predicted that Q1 2019 total revenues would equal $312.5 million, but Dunkin' beat it by turning in $319.1 million for the quarter ending March 30, up 5.9% over last year's Q1 results.
First quarter highlights include:
+2.4% growth in Dunkin' U.S. comparable store sales.
-2.8% drop in Baskin-Robbins U.S. comparable store.
+5.9 increase in revenues increased.
+10.5% growth in diluted EPS to $0.63.
+8.1% growth in diluted adjusted EPS to $0.67.
For Dunkin Brands CEO and Dunkin U.S. President David Hoffman, the early 2019 performance of the two brands owned by Dunkin' and Baskin-Robbins was just the beginning of results from the start of the company's "Blueprint for Growth," with U.S. Dunkin' stores delivering the largest quarterly comparable store sales increase in four years of 2.4%.
"This solid performance, across both morning and afternoon, was driven by consistent, compelling national value promotions and continued beverage sales momentum," Hoffman said during a call concerning the quarterly results. "In particular, the relaunch of our highly successful handcrafted espresso platform, without impacting our trademark speed of service, has demonstrated our ability to deliver on the commitment of 'great coffee fast. Going forward, the collaboration we have with our franchisees and licensees will remain our number one asset, and we will continue to work together to modernize our brands and deliver healthy growth."
Dunkin' Brands Group CFO Kate Jaspon said Q1 growth of nearly 6 percent in revenue and "double-digit operating income growth" were among numerous achievements for the quarter. And since the quarter closed, the company also achieved a financing move that Jaspon said would reduce expenditures in the future.
"The company also completed a $1.7 billion placement of securitized debt on April 30 that replaced our 2015 notes and were pleased to maintain our overall blended fixed interest rate across all of the outstanding securitized debt under four percent," Jaspon said in the release. "The refinancing provides strong fixed rates as well as flexibility to navigate future market environments."
Moving forward this fiscal year, Dunkin' said its U.S. Dunkin' store openings during the period should pull in another $130 million or more in systemwide sales for 2019. Likewise, it believes Baskin-Robbins will achieve revenue growth primarily through more consumer packaged goods sales.
