Dunkin' Brands Group 2Q net income nearly flat

[August 03, 2011]  CANTON, Mass. (AP) -- Dunkin' Brands Group Inc., which went public last month, said Wednesday that its second-quarter earnings were nearly flat as the company focused on its U.S. expansion efforts and aggressive growth overseas.

The parent company of Dunkin' Donuts and Baskin-Robbins earned $17.2 million for the three months ended June 25. That compares with $17.3 million in the prior-year period. The company did not provide per-share results.

Excluding impairment charges and other items, adjusted earnings slipped 4 percent to $24.7 million from $25.6 million.

Revenue climbed 4 percent to $157 million from $150.4 million.

Revenue from stores open 54 weeks or more rose 3.2 percent, helped by a 3.8 percent increase at Dunkin' Donuts stores in the U.S. Revenue from Baskin-Robbins U.S. stores open at least a year fell 2.8 percent.

This figure is a key gauge of a retailer's health because it excludes results from stores opened or closed during the 54 weeks.

Dunkin' Brands said franchisees and licensees opened 140 new Dunkin' Donuts and Baskin-Robbins around the world during the second quarter.

"It's an exciting time for Dunkin' Brands as a new public company. 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," Dunkin' Brands CEO and Dunkin' Donuts President Nigel Travis said in a statement.

Dunkin' Brands began trading on July 27 and surged almost 47 percent in its debut on the Nasdaq. The Canton, Mass., company has carved an identity as a place where the working class can buy a cup of coffee, seeking to distance itself from upper-crust Starbucks the same way that Mac users distance themselves from PC fans.

Dunkin' is the seventh-biggest restaurant chain by U.S. revenue, compared with rival Starbucks, which is No. 3. According to Technomic, Dunkin' Donuts posted a bigger increase in U.S. revenue last year than even McDonald's Corp., which is often heralded as the gold standard for sales growth. And Dunkin' Donuts opened more new locations in the U.S. than any restaurant except Subway.

[Associated Press]

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