Dunkin Brands misses by $0.02, reports revs in-line; reaffirms FY14 EPS guidance, revs guidance; Dunkin US comps +1.2%
Reports Q1 (Mar) earnings of $0.33 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.35; revenues rose 6.2% year/year to $171.9 mln vs the $172.28 mln consensus.
- Co reaffirms guidance for FY14, sees EPS of $1.79-1.83, excluding non-recurring items, vs. $1.81 Capital IQ Consensus Estimate; sees FY14 revs of +6-8% to ~$755.83-770.9 mln vs. $767.55 mln Capital IQ Consensus Estimate.
- Dunkin' Donuts U.S. comparable store sales growth of 1.2%; international -2.4%.
- Dunkin' Donuts U.S. revenues of $125.2 million represented an increase of 4.7 percent year-over-year. The increase was primarily a result of increased royalty income and an increase in gains from refranchising transactions, offset by a decline in franchise fees driven by the timing of franchise renewals.
- Dunkin' Donuts International first quarter systemwide sales increased 0.4 percent from the prior year period, driven by sales growth in the Middle East, Germany, and Spain, offset by a decline in South Korea. On a constant currency basis, systemwide sales increased by approximately 3 percent.
- FY14 Outlook Details: The Company expects Dunkin' Donuts U.S. comparable store sales growth of 3 to 4 percent and Baskin-Robbins U.S. comparable store sales growth of 1 to 3 percent. The Company expects that Dunkin' Donuts U.S. will add between 380 and 410 net new restaurants representing greater than 5 percent net restaurant growth and expects Baskin-Robbins U.S. will add between 5 and 10 net new restaurants. Internationally, the Company is targeting opening 300 to 400 net new restaurants across the two brands. Globally, the Company expects to open between 685 and 800 net new units.