Dunkin’ Brands Slides on Second-Quarter Revenue Miss

Dunkin’ Brands Group (DNKN) shares slid Thursday afternoon after the Dunkin’ and Baskin-Robbins operator’s second-quarter revenue missed expectations.

Canton, Mass.-based Dunkin’ said revenue in the quarter ended June 30 rose to $359.3 million from $350.6 million in the prior-year period. Capital IQ had expected $360.3 million. Diluted adjusted per-share earnings rose to $0.86, up from $0.77 last year and ahead of the Street’s view for $0.81.

Meanwhile, Dunkin’ raised its full-year diluted adjusted per-share earnings guidance to between $3.02 and $3.05, up from May’s forecast for $2.94 to $2.99. Capital IQ expects $3.01.

Dunkin’ shares were down almost 2.4% in afternoon trading.

“Continuing the momentum established earlier in the year, our second quarter performance was highlighted by double-digit sales growth of espresso, our national value platforms, and terrific customer reception to our latest menu innovation, our better-for-you Power Platform,” Chief Executive David Hoffmann said.

Dunkin’s US comparable-store sales rose 1.7%, up from 1.4% last year and ahead of the Street’s consensus for 1.5%. Dunkin’ International comparable sales rose 5.6% from 4%. Baskin-Robbins US comparable sales fell 1.4%, wider than last year’s 0.4% decline. Comparable sales at Baskin-Robbins International rose 3.2% from a decline of 2.5% a year before.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

Leave a Reply

Your email address will not be published. Required fields are marked *

*