Canton / MA. (db) Dunkin´ Brands Group Inc., the parent company of Dunkin´ Donuts (DD) and Baskin-Robbins (BR), reported results for the quarter ended June 25, 2011. «We delivered strong results for the quarter as a result of our continued focus on driving comparable store sales, expanding contiguously in the U.S., and accelerating international growth across both brands», said Nigel Travis, Chief Executive Officer, Dunkin´ Brands, Inc. and President, Dunkin´ Donuts. «Our emphasis on operational excellence and exciting product innovations, supported by great marketing, produced strong global system-wide sales and comparable store sales growth for Dunkin´ Donuts U.S., while our franchisees and licensees continued to drive new store growth, both domestically and internationally». Second quarter 2011 financial highlights included:
- Global system-wide sales increased approximately 6,9 percent over second quarter 2010.
- Consolidated U.S. comparable store sales increased 3,2 percent. Dunkin´ Donuts U.S. comparable store sales increased 3,8 percent while Baskin-Robbins U.S. comparable store sales decreased 2,8 percent.
- Dunkin´ Brands´ franchisees and licensees opened 140 net new Dunkin´ Donuts and Baskin-Robbins locations on a global basis during the quarter, and 234 during the first six months of 2011, increasing Dunkin´ Brands total points of distribution to 16’427 at the end of the second quarter.
- Revenues increased by more than four percent to 157,0 million USD for the second quarter of 2011, compared to 150,4 million USD for the same period in 2010. The Company re-franchised 13 stores between the second quarter of 2010 and the second quarter of 2011. Excluding company-owned stores for both periods, revenues grew approximately six percent.
- Operating income was 61,8 million USD compared to 57,9 million USD for the second quarter of 2010, representing a 6,8 percent year-over-year increase. Operating income growth over the prior period was impacted by higher ice cream costs due to rising commodity prices.
- Net income was 17,2 million USD compared to 17,3 million USD for the second quarter of 2010.
- Adjusted net income for the quarter was 24,7 million USD compared to 25,6 million USD for the second quarter of 2010.
The global system-wide sales growth for the second quarter was primarily attributable to Dunkin´ Donuts U.S. comparable store sales growth (which includes stores open 54 weeks or more), growth in Dunkin´ Donuts and Baskin-Robbins international sales, and global store development.
«Since the first of the year, we have significantly increased the strength of our balance sheet, and after the completion of our initial public offering, have reduced our annual interest expense by 50 percent to approximately 60 million USD through a combination of debt retirement, restructuring, and repricing. This financing activity resulted in non-recurring charges which impacted year-to-date net income», said Chief Financial Officer Neil Moses. «The performance of the business in the second quarter demonstrates the strength of our business model and the integrity of our platform for future growth».
«It is an exciting time for Dunkin´ Brands as a new public company», said Nigel Travis. «We are pleased with our second quarter results and look forward to sharing our longer term growth opportunities and financial goals in the near future».
