Dunkin' Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' Donuts (DD) and Baskin-Robbins (BR), today reported results for the second quarter ended June 28, 2014.
"Second quarter sales growth was below our expectations with Dunkin' Donuts U.S. comparable store sales not accelerating as fast or to the degree that we anticipated after a difficult first quarter. We believe this was largely the result of macroeconomic challenges facing consumers, as evidenced across the retail and the QSR industries, along with an unseasonably cold, rainy start to the spring season," said Nigel Travis, Chairman & CEO, Dunkin' Brands Group, Inc. "Dunkin' Donuts U.S. transaction growth was encouraging and comparable store sales gradually improved throughout the quarter with June average weekly sales reaching the highest volume on record. We remain confident in our ability to drive long-term growth through our product and marketing innovation, including our mobile and loyalty programs. In fact, we're excited to announce that we recently eclipsed 7.9 million downloads of the Dunkin' Donuts mobile app, and we are nearing 1.3 million DD Perks Rewards members."
Second quarter highlights include:
· Dunkin' Donuts U.S. comparable store sales growth of 1.8%
· Added 151 net new restaurants worldwide including 75 net new Dunkin' Donuts in the U.S.
· Revenue increased 4.6%
· Adjusted operating income increased 3.3%; adjusted operating income margin of 49.3%
· Diluted adjusted EPS increased 14.6% to $0.47
· Board of Directors declares $0.23 third quarter dividend. Full report.
