Shares of Dunkin’ Brands Group, Inc. (DNKN – Free Report) were up nearly 2% in the trading session on Jul 27, after the company reported mixed second-quarter 2017 results. While, the bottom line outpaced the Zacks Consensus Estimate, the top line lagged the same.
Earnings and Revenues Discussion
Adjusted earnings of 64 cents per share beat the Zacks Consensus Estimate of 62 cents by 3.2% and increased 12.3% year over year. This upside was mainly owing to better margins, offset by an increase in shares outstanding.
Dunkin’ Brands’ revenues in the quarter increased 1% year over year to $218.5 million. The improvement was on the back of a rise in royalty income as well as a boost in rental income. But it was also partly offset by a decrease in sales at company-operated restaurants and decline in sales of ice cream and other products, particularly in the Middle East, along with decrease in other revenues. Moreover, the top line missed the Zacks Consensus Estimate of $219.6 million by 0.5% in the reported quarter.
Dunkin’ Brands Group, Inc. Price, Consensus and EPS Surprise
Dunkin’ Brands Group, Inc. Price, Consensus and EPS Surprise | Dunkin’ Brands Group, Inc. Quote
Inside the Headline Numbers
Dunkin’ Brands operates through its Dunkin’ Donuts and Baskin-Robbins brands.
The company’s system-wide sales increased 4.6% in-line with the 4.6% growth recorded in the prior quarter.
Dunkin’ Donuts
Dunkin’ Donuts U.S. reported revenues of $157.1 million, which reflects an increase of 2.2% over the prior-year quarter. The upside was attributable to higher royalty income and rental income as well as an increase in franchise fees, partly offset by a decrease in sales at company-operated restaurants and a decline in other revenues.
Comps increased 0.8% in the Dunkin Donuts U.S. division comparing favorably with 0.5% growth in the prior-year quarter, and flat comps in the preceding quarter.
