Dunkin' Brands Group Inc. (DNKN), the parent company of Dunkin' Donuts and Baskin-Robbins, is scheduled to release its Q3 results on October 22.
The company expects same-store sales growth for the quarter to be below the consensus. Analysts polled by Thomson Reuters expect the company to report earnings of $0.51 per share on revenues of $204.13 million for the period.
Dunkin' Brands said one of its franchisees will be shutting down 100 stores by 2016. A recent hike in the wage of fast food workers also has far reaching implications, Dunkin' CEO Nigel Travis pointed out. However, the company reiterated its plans to open 410 to 440 net new Dunkin' Donuts restaurants in the U.S.
FY15 Guidance
The company expects revenue growth of between 6 and 8 percent and adjusted earnings per share of $1.87 to $1.91. Analysts expect earnings of 1.90 per share on revenue growth of 7.4% for the fiscal year.
Dunkin' Brands continues to expect Dunkin' Donuts U.S. comparable-store sales growth of 1 to 3 percent and Baskin-Robbins U.S. comparable-store sales growth of 1 to 3 percent. Globally, it continues to expect to open between 615 and 750 net new restaurants.
Q2 Results
For the second quarter, the company had reported revenues of $211.42 million compared with $190.91 million a year ago.
Second-quarter adjusted earnings were $48.55 million or $0.50 per share versus $50.16 million or $0.47 per share last year.
Dunkin' Brands recently opened three Dunkin' Donuts locations at The University of Tennessee's Neyland Stadium in Knoxville, one of the largest college football stadiums in the country. With this, the company has now over 75 restaurants at colleges and universities throughout the country.
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