Dunkin’ Brands Group Earnings: Here’s Why Investors are Happy Now

Dunkin’ Brands Group Inc (NASDAQ:DNKN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.62%.

Dunkin’ Brands Group Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 24.24% to $0.41 in the quarter versus EPS of $0.33 in the year-earlier quarter.

Revenue: Rose 5.86% to $182.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dunkin’ Brands Group Inc reported adjusted EPS income of $0.41 per share. By that measure, the company beat the mean analyst estimate of $0.40. It missed the average revenue estimate of $183.09 million.

Quoting Management: “We are pleased with our performance in the second quarter which was driven by strong comparable store sales and net unit development for Dunkin’ Donuts U.S.,” said Nigel Travis, Chairman and Chief Executive Officer, Dunkin’ Brands Group, Inc. “Innovative marketing and new product introductions, as well as a focus on delivering a great customer experience, continue to deliver attractive franchisee returns and exceptional results for Dunkin’ Donuts in the U.S. Additionally, we continue to see significant interest in restaurant development for Dunkin’ Donuts in this country, and for the second consecutive quarter, Baskin-Robbins U.S. experienced positive net growth. On the international front, we continue to build the foundation for the long-term growth of both brands. Going into the second half of the year, we are confident about our business prospects and are steadfastly focused on delivering profitable growth for our franchisees and shareholders.”

Key Stats (on next page)…

Revenue increased 12.75% from $161.86 million in the previous quarter. EPS increased 41.38% from $0.29 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 $0.43 and has not changed. For the current year, the average estimate is a profit of $1.53, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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