CANTON, Mass., US – Dunkin’ Brands Group, Inc. , the parent company of Dunkin’ Donuts and Baskin-Robbins, yesterday (December 18, 2014) announced certain new or updated performance expectations for 2015.
“This has been a challenging year for our businesses. We are pleased that Dunkin’ Donuts’ 2014 U.S. comparable store sales and transactions remained positive, although not as positive as we hoped because of continued pressure on the consumer and decelerating sales of packaged coffee in our restaurants. We expect these trends to continue into next year.
Internationally we are making progress in retooling our businesses, but the joint ventures in Korea and Japan remain under pressure and are expected to negatively impact next year’s results.
Given this, we are updating and providing additional performance expectations for fiscal year 2015, and while our earnings growth expectations for 2015 are below our longer-term targets, we are committed to returning to double-digit growth in the subsequent years,” said Nigel Travis, Chairman & CEO, Dunkin’ Brands Group, Inc.
Fiscal Year 2015 Targets:
- The Company expects Dunkin’ Donuts U.S. comparable store sales growth of 1 to 3 percent and Baskin-Robbins U.S. comparable store sales growth of 1 to 3 percent.
- The Company expects that Dunkin’ Donuts U.S. will add between 410 and440 net new restaurants and expects Baskin-Robbins U.S. will add between 5 and 10 net new restaurants.
- Internationally, the Company is targeting opening 200 to 300 net new restaurants across the two brands. It expects net income of equity method investments to be approximately $13 million.
- Globally, the Company expects to open between 615 and 750 net new units.
- The Company expects revenue growth of between 5 and 7 percent and adjusted operating income growth of between 6 and 8 percent.
- The Company expects adjusted earnings per share of $1.88 to $1.91. This target is based on diluted weighted average shares for the full year of 106 million.
- The Company expects free cash flow growth of greater than 15 percent.
Mr. Travis continued, “We expect full year 2014 adjusted earnings per share to be $1.75 to $1.76 and full-year Dunkin’ Donuts U.S. comparable store sales growth to be approximately 1.4 percent.
Additionally, we expect to finish the year near the top end of our Dunkin’ Donuts U.S. development growth target of 380 to 410 net new restaurants, and 2014 free cash flow growth should be greater than 15 percent.
We continue to believe Dunkin’ Brands has tremendous growth prospects, led by the opportunity for 17,000 plus Dunkin’ Donuts restaurants in the U.S. and over 30,000 restaurants for both brands globally.”
The Company will report fourth quarter and fiscal year 2014 results on Thursday, February 5, 2015.
