Higher charges and expenses lowered Dunkin’ Brands Group Inc. earnings by less than 1 percent in the second quarter, the company reported Wednesday.
Net income for Dunkin’ Brands, which went public late last month, slipped to $17.2 million compared with $17.3 million for the year-ago period.
Revenue for the Canton, Mass.-based parent of Dunkin’ Donuts and Baskin-Robbins rose 4.4 percent to $157 million in the period ended June 25, compared with $150.4 million in the second quarter of 2010.
The company said income growth was impacted by higher ice cream costs due to rising commodity prices.
U.S. same-store sales increased 3.2 percent systemwide — 3.8 percent at Dunkin’ Donuts and 2.8 percent at Baskin-Robbins.
“We delivered strong results for the quarter as a result of our continued focus on driving comparable store sales, expanding contiguously in the U.S., and accelerating international growth across both brands,” said Dunkin’ Brands’ chief executive and Dunkin’ Donuts’ president Nigel Travis in a statement.
“Our emphasis on operational excellence and exciting product innovations, supported by great marketing, produced strong global systemwide sales and comparable-store sales growth for Dunkin’ Donuts U.S., while our franchisees and licensees continued to drive new store growth, both domestically and internationally.”
Franchisees and licensees opened 140 net new units worldwide, increasing the company’s total number to 16,427.
At the end of 2010, the company’s almost wholly franchised system comprised 9,760 Dunkin’ Donuts and 6,433 Baskin-Robbins locations.
Annual systemwide sales totaled $7.7 billion.
Dunkin’s newly minted shares fell following the report, sliding by more than 6 percent by press time from its opening price of $27.50, to just under $26.
The company also announced today the roll-out of single-serve Keuring cups, or K-Cups, which will be sold at participating Dunkin’ Donuts stores in 14-count boxes for a suggested $11.99. The K-Cups come in Original Blend, Dunkin’ Decaf, French Vanilla, Hazelnut and Dunkin’ Dark Roast flavors.
Rival coffee brand Starbucks introduced K-Cups last year.
Dunkin’ Brands Group went public last week, selling 22.25 million shares for $19 each. It began trading Wednesday at $25, and rose to nearly $27.85.
Contact Bret Thorn at [email protected].
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