Dunkin Brands Group Inc Stock Dips on Disappointing Sales

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Dunkin Brands Group Inc (NASDAQ:DNKN) stock was slipping Tuesday following the release of its earnings report for the fourth quarter of 2017.

Dunkin Brands Group Inc Stock Dips on Disappointing Sales

The big thorn in DNKN stock’s side in its most recent earnings report were comparable store sales. Dunkin Brands Group Inc notes that its Dunkin’ Donuts brand only saw comparable store sales in the U.S. increase by 0.8%. Baskin-Robbins reported comparable sales growth of 5.1% during the quarter.

Dunkin Brands Group Inc notes that the increase in comparable store sales for the fourth quarter of 2017 wasn’t due to more traffic. In fact, it states that traffic was actually down for both chains in the U.S. during the quarter. Instead, it says that higher sales per customer was responsible for the increase.

Despite the disappointing comparable store sales growth for the fourth quarter of the year, Dunkin Brands Group Inc still beat estimates. This includes earnings per share of 64 cents on revenue of $227.10 million. Wall Street was estimating earnings per share of 63 cents on revenue of $220.62 million for the fourth quarter of 2017.

Operating income for the fourth quarter of the year was $120.10 million. This is an increase over Dunkin Brands Group Inc’s operating income of $113.90 million from the same time last year.

Dunkin Brands Group Inc also reported net income of $195.50 million for the fourth quarter of 2017. This is up from its net income of $56.1 million from the same period of the year prior. The increase is due to a recent tax reform benefit. When excluding this, net income for the quarter was $58.40 million.

DNKN stock was down 1% as of Tuesday morning.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/02/dunkin-brands-group-inc-stock-down-on-q4-report/.

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