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Thursday, February 6, 2020

-=Dunkin (DNKN) reported earnings on Thur 6 Feb 20 (b/o)

Dunkin beats by $0.03, reports revs in-line; guides FY20 EPS below consensus
  • Reports Q4 (Dec) earnings of $0.73 per share, excluding non-recurring items, $0.03 better than the S&P Capital IQ Consensus of $0.70; revenues rose 5.1% year/year to $335.92 mln vs the $335.95 mln S&P Capital IQ Consensus.
    • Dunkin' U.S. comparable store sales grew 2.8% in the fourth quarter as an increase in average ticket was partially offset by a decrease in traffic. The increase in average ticket was driven by favorable mix shift to premium priced espresso and cold brew beverages, as well as the successful launch of the Beyond Sausage Sandwich, an addition to the high end of our breakfast sandwich barbell strategy, coupled with strategic pricing increases which were partially offset by discounting driven by national value platforms.
    • Baskin-Robbins U.S.comparable store sales grew 4.1% in the fourth quarter driven by an increase in average ticket and an increase in traffic. Comparable store sales growth was led by the strong performance of cups and cones, beverages, take home, and sundaes.
  • Co issues downside guidance for FY20, sees EPS of $3.16-3.21, excluding non-recurring items, vs. $3.29 S&P Capital IQ Consensus.
    • The company expects low-single digit comparable store sales growth for Dunkin' U.S. and low-single digit comparable store sales growth for Baskin-Robbins U.S.
    • The company expects to open between 200 to 250 net new Dunkin' U.S. units, excluding approximately 450 limited menu Dunkin' Speedway locations which are closing under a termination agreement entered into with Speedway and are expected to close by fiscal year end 2020.
    • The Company expects mid-single digit percent operating and adjusted operating income growth, reflecting an approximately $60 million strategic investment for continued beverage leadership.
  • The Company reiterates its previously announced long-term targets through fiscal year 2021.
    • The company expects low-single digit percent comparable store sales growth for Dunkin' U.S.
    • The company expects low-to-mid single digit percent revenue growth.
  • Co also increased quarterly dividend to $0.4025/share from $0.375/share.

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