Food & Beverage

Take-home ice cream sales sweeten Dunkin Brand's Q3 earnings

Photo: Baskin-Robbins via Twitter

October 29, 2020

As Dunkin' Brands continues possible acquisition talks with Inspire Brands, it released third-quarter financial results showing that Baskin-Robbins U.S. comp sales grew 6.5% for the period. The lift was thanks in some part to larger ice cream cakes and other take-home orders, which allowed those comp sales to grow each month of the quarter.

Dunkin' U.S. comp store sales didn't fare as well for the quarter that ended Sept. 26, growing just 0.9% for the period. Those results followed a net closure of 466 Dunkin' locations nationally, including the previously announced closure of 425 Speedway-located stores.

Other highlights of the quarter include:

• 3.5% increase in diluted EPS to 89 cents.
• 3.3% increase in diluted adjusted EPS to 93 cents.
• 1.6% increase in revenues to $5.7 million.
• 14.9% dip in Dunkin' International Q3 systemwide sales.
• 4.2% drop in Q3 Baskin-Robbins International systemwide sales.

"Our strong third quarter results are a testament to our continued focus on the Dunkin' U.S. Blueprint for Growth and demonstrate that our high-frequency, low-touch, affordable-ticket business performs well in any environment," CEO Dave Hoffmann said in a company press release. "In response to changing consumer patterns, we moved quickly to adapt our menu, introducing new beverages and snacking items designed to appeal to both morning and afternoon traffic, as well as younger consumers.

We also doubled-down on digital, leveraging the strength of our assets to give customers an even faster, frictionless experience."

Dunkin' Brands CFO Kate Jaspon added that the company has nearly completed the initiative started last year to close under-performing stores in the U.S.

"For many Dunkin' U.S. franchisees, closing these restaurants will enable them to do greater reinvestment into the brand whether through Next Generation remodels, building new restaurants, or relocating restaurants to higher-traffic areas," she said in the release.

The company also said it was still in "preliminary discussions to be acquired by Inspire Brands," but reiterated that an agreement was not certain and that it would not comment any further.

Canton, Massachusetts-based Dunkin' Brands has more than 20,000 points of distribution in more than 60 countries worldwide, including more than 12,000 Dunkin' restaurants and 7,000 Baskin-Robbins restaurants.