Dunkin’ Brands Earnings: Serves Stronger Profit to Shareholders

Dunkin’ Brands Group Inc (NASDAQ:DNKN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. Shares are up 2.12%.

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Dunkin’ Brands Group Inc Earnings Cheat Sheet

Results: Net income increased 195.94% to $34.3 million (34 cents per diluted share) in the quarter versus a net gain of $11.59 million in the year-earlier quarter.

Revenue: Decreased 4.04% to $161.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dunkin’ Brands Group Inc reported adjusted net income of 34 cents per share. By that measure, the company beat the mean analyst estimate of $0.33. It missed the average revenue estimate of $170.85 million.

Quoting Management: “The fourth quarter was strong, and we finished 2012 delivering 15 percent plus adjusted operating income growth and nearly 40 percent adjusted earnings per share growth year-over-year,” said Nigel Travis, Chief Executive Officer, Dunkin’ Brands Group, Inc., and President, Dunkin’ Donuts U.S. “We have the unique combination of strong brand heritage and significant U.S. and global restaurant expansion opportunities, which we are capitalizing on to drive profitable growth for both our franchisees and shareholders…

…Our contiguous, strategic development approach is working, and we’re excited to begin sellingĀ  Dunkin’ Donuts franchises in California. Despite macro-economic instability and a tough competitive environment, consumer and franchisee demand for Dunkin’ Donuts is high, our franchisee relationships are strong, and we continue to leverage our asset-light business model giving us confidence to target 15 percent plus adjusted earnings per share growth in 2013.”

Key Stats:

Revenue decreased 5.84% from $171.72 million in the previous quarter. Net income increased 16.15% from $29.53 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.29 and has not changed. For the current year, the average estimate is a profit of $1.27, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)