Dunkin’ Donuts parent: 2Q revenue rose nearly 10 percent
Dunkin’ Brands Inc., the corporate parent of Dunkin’ Donuts and Baskin-Robbins, said Thursday that second-quarter revenue rose 9.8 percent to $172.4 million.
Net income for the quarter was $18.5 million, up from $17.2 million a year ago, the Canton-based company said in a press release.
In a statement, Dunkin’ Brands chief executive Nigel Travis said: “Tomorrow marks our one-year anniversary as a publicly-traded company. We believe our strong performance to date clearly demonstrates the platform for growth that we laid out at the time of our IPO. For the quarter, our franchised business model continued to generate consistent revenue growth and high-margins, resulting in a 32 percent increase in adjusted earnings per share. Additionally, our focus on store-level economics, best-in-class product and marketing innovation, and operational execution drove comparable store sales increases across all business segments. We also continued to capitalize on our significant growth prospects in the US and internationally and by the end of the quarter had more than 17,000 restaurants worldwide.’’
In the second quarter, Dunkin’ Brands said its franchisees and licensees opened 140 net new restaurants around the world.
Operating income decreased $15.7 million, or 25.3 percent, from the second quarter of 2011 primarily as a result of a $20.7 million increase in the legal reserve related to litigation and $3.7 million of costs related to the closing of an ice cream manufacturing plant in Ontario, Canada, offset by the increase in revenues, Dunkin’ Brands said. Adjusted operating income increased $9.7 million, or 14 percent, from the second quarter of 2011, the company said.
The company also said that its board of directors authorized a program to repurchase up to an aggregate $500 million of its outstanding common stock. The authorization is granted for a period of two years.
Regarding its fiscal year 2012 targets, the company said it continues to expect revenue growth of between 7 and 8 percent with adjusted operating income growth of between 12 and 14 percent. The company added that it is increasing its range for adjusted earnings per share to $1.22 to $1.25, which would represent 30 to 33 percent growth over its $0.94 adjusted earnings per share in 2011 and is an increase from the previous target of $1.21 to $1.24.
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