May 4 Dunkin' Brands Group Inc said on
Thursday sales at established Dunkin' Donuts stores in the
United States were little changed in the first quarter, hurt by
a decline in store traffic.
Sales at U.S. Dunkin' Donuts outlets open for more than a
year — which make up about three-fourths of the Dunkin' Brands'
revenue — were expected to rise 0.8 percent, according to
analysts polled by research firm Consensus Metrix.
This led Dunkin' Brands, which also owns the Baskin-Robbins
ice cream chain, to report lower-than-expected first-quarter
The results came amid an "increasingly challenging
environment for retail and restaurants," Dunkin' Brands Chief
Executive Nigel Travis said.
The company said net income rose to $47.5 million, or 51
cents per share, in the first quarter ended April 1, from $37.2
million, or 40 cents per share, a year earlier.
The rise in net income was helped by a tax benefit due to a
new accounting standard for share-based compensation.
Excluding items, the company earned 48 cents per share, in
line with the average analyst estimate, according to Thomson
Dunkin' Brands' Revenue increased slightly to $190.7
million, missing analysts' expectation of $192.2 million.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sai