Dunkin' Donuts Revenue Declines | NECN
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Dunkin' Donuts Revenue Declines

Earnings, however, are up

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    NEWSLETTERS

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    NEW YORK, NY - JULY 11: A customer exits a Dunkin' Donuts store in midtown Manhattan on July 11, 2011 in the New York City. Dunkin' Brands Group Inc., the parent of Dunkin' Donuts, plans to raise as much as $401 million by selling its initial public offering of 22.3 million shares, which are expected to fetch between $16 and $18. (Photo by Ramin Talaie/Getty Images)

    Dunkin' Brands' third-quarter revenue dipped on the sale of its remaining company-run stores and for a second time, it lowered revenue expectations for the year.

    The Canton, Massachusetts, company earned $52.7 million, or 57 cents per share, for the three months ended Sept. 24, up from $46.2 million, or 48 cents per share, a year earlier.

    Earnings, adjusted for one-time gains and costs, were 60 cents per share, which was 2 cents better than Wall Street had expected, according to analysts surveyed by Zacks Investment Research.

    Revenue slipped 1.3 percent to $207.1 million, well short of analyst projections of $213.3 million.

    Chief Financial Officer Paul Carbone said in a written statement Thursday that the sale of the remaining company-run stores pushed revenue lower, but that the company is now 100 percent franchised.

    Sales at Dunkin' Donuts stores in the U.S. open at least a year increased 2 percent on strong drink sales, while the figure fell 0.9 percent at Baskin-Robbins, which the company owns.

    Dunkin' Brands Group Inc. now anticipates full-year revenue growth of about 2 percent. Its prior guidance was for revenue growth 3 percent to 5 percent. Before that, the company had predicted revenue growth of 4 percent to 6 percent.

    Dunkin' Brands also announced a fourth-quarter dividend of 30 cents per share. The dividend will be paid on Nov. 30 to shareholders of record on Nov. 21.

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