Dunkin reports positive Q2

Dunkin' Brands Group Inc. reported overall positive results for the second quarter ended June 27, 2015. According to a company press release, comparable store sales for Dunkin Donuts U.S. came in at 2.9 percent, with Baskin-Robbins U.S. comparable store sales growth reaching 3.4 percent. The company added 154 net new restaurants worldwide, including 80 net new Dunkin' Donuts in the U.S., resulting in more than 19,000 restaurants globally.

Total company revenues increased 10.7 percent. Revenue increases were due primarily to increased royalty income as a result of systemwide sales growth; an increase in sales at company-operated restaurants due to a net increase in the number of company-operated restaurants; increased sales of ice cream and other products; and licensing fees earned from the sale of Dunkin' K-Cup pods.   

Dunkin attributed global systemwide sales growth to store development and sales growth at Dunkin' Donuts U.S. stores, which includes stores open 54 weeks or more.

Increased average ticket and higher traffic were the driving factors in U.S. comparable store sales growth for Q2, which resulted from a focus on operational excellence and product and marketing innovation, the company said. Product and marketing innovations also resulted in strong beverage sales growth, led by hot and iced coffee and espresso-based beverages; continued breakfast sandwich momentum across core and limited-time offer sandwiches including the bacon guacamole flatbread sandwich; and donut category growth driven by the croissant donut, cheesecake squares, and limited-time-offer Oreo and Chips Ahoy! donuts.

In-restaurant K-Cup and packaged coffee categories had a significant negative impact on Q2 comparable store sales. Traffic accounted for approximately 60 basis points of the comparable store sales growth in the quarter, the company said.

Increased sales of cups and cones, beverages, desserts, and sundaes and increased sales of cakes, stimulated by year-over-year growth in online cake ordering, drove Baskin-Robbins U.S. comparable store sales growth.

'We had excellent overall second quarter results driven by strong comparable store sales growth and net store development for both Dunkin' Donuts and Baskin-Robbins in the U.S., as well as a faster-than-expected launch of Dunkin' K-Cup pods into thousands of retailers nationwide," said Dunkin' Brands Chairman and CEO Nigel Travis. "Also significant this quarter, Dunkin' Donuts celebrated its 65th anniversary making the brand's continued strong growth truly remarkable. Along with our franchisees, we are extremely proud that Dunkin' Donuts has become a brand that is experienced by millions of people around the world on a daily basis, and we remain steadfastly focused on delivering high-quality beverages and products to our guests now and in the years ahead."

"We're very pleased with our financial performance through the first half of 2015 which included nearly 10 percent revenue growth and double-digit operating income growth. We remain on track to deliver our 2015 targets," said Paul Carbone, CFO, Dunkin' Brands Group Inc.