Dunkin' Donuts completed the roll out of menu simplification across 100% of the U.S. system
Dunkin' Donuts U.S. comparable store sales decline of 0.5%
Baskin-Robbins U.S. comparable store sales decline of 1.0%
Added 71 net new Dunkin' Donuts and Baskin-Robbins locations globally including 56 net new Dunkin' Donuts in the U.S.
Revenues increased 1.7%
Diluted EPS increased by $0.09 to $0.57
Diluted adjusted EPS increased by $0.11 to $0.62
Company entered into $650 million accelerated share repurchase agreement
Dunkin' Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' Donuts (DD) and Baskin-Robbins (BR), today reported results for the first quarter ended March 31, 2018.
"In the first quarter of 2018, we made great headway with numerous strategic growth initiatives, including opening 56 net new Dunkin' Donuts in the U.S., continuing our trend as one of the nation's fastest growing retail brands by unit count; the unveiling of our next-generation Dunkin' Donuts store design; and surpassing $220 million in retail sales of CPG products across both brands," said Nigel Travis, Chairman and Chief Executive Officer, Dunkin' Brands Group, Inc. "These accomplishments were achieved against a tough backdrop of intense competitive activity and adverse weather, which, along with the national roll-out of menu simplification, negatively impacted Dunkin' Donuts U.S. comparable store sales. Going forward we believe we have the right plans in place, as well as the full alignment of our franchisees, to position ourselves for growth both now and for the long-term."
"We are pleased with the progress we made in the first quarter with our plan to transform Dunkin' Donuts U.S. into a beverage-led, on-the-go brand," said Dave Hoffmann, President of Dunkin' Donuts U.S. "Not only did we complete the national roll out of menu simplification, which should improve customer service and franchisees' profitability, but we also had record-breaking breakfast sandwich sales, saw an improvement in our afternoon traffic as a result of our PM beverage break offers, conducted successful value menu tests leading to a national launch in April, and drove flavored coffee and espresso sales with our innovative Girl Scout partnership."
"We are pleased to have entered into a $650 million accelerated share repurchase program during the first quarter," said Kate Jaspon, Dunkin' Brands Chief Financial Officer. "The accelerated share repurchase illustrates our continued commitment to utilize our strong balance sheet to return capital to shareholders."
(Unaudited, $ in millions, except per share data)
Three months ended
Increase (Decrease)
Amounts and percentages may not recalculate due to rounding
March 31,
2018
April 1,
2017(1)
$ / #
%
Financial data:
Revenues
$
301.3
296.4
5.0
1.7%
Operating income
89.8
86.8
3.1
3.5%
Operating income margin
29.8%
29.3%
Adjusted operating income(2)
$
95.7
92.1
3.6
3.9%
Adjusted operating income margin(2)
31.8%
31.1%
Net income
$
50.2
44.3
5.9
13.2%
Adjusted net income(2)
54.4
47.5
6.9
14.4%
Earnings per share:
Common–basic
0.58
0.48
0.10
20.8%
Common–diluted
0.57
0.48
0.09
18.8%
Diluted adjusted earnings per share(2)
0.62
0.51
0.11
21.6%
Weighted average number of common shares – diluted (in millions)
87.9
93.1
(5.2)
(5.6)%
Systemwide sales(3)
$
2,660.0
2,529.9
130.0
5.1%
Comparable store sales growth (decline):
DD U.S.
(0.5)%
—
BR U.S.
(1.0)%
(2.4)%
DD International
2.1%
(0.2)%
BR International
10.0%
(2.0)%
Development data:
Consolidated global net POD development
71
29
42
144.8%
DD global PODs at period end
12,598
12,287
311
2.5%
BR global PODs at period end
7,993
7,822
171
2.2%
Consolidated global PODs at period end
20,591
20,109
482
2.4
