CANTON, Mass., U.S. – Dunkin’ Brands Group, Inc., the parent company of Dunkin’ and Baskin-Robbins, has reported results for the first quarter ended March 28, 2020. Dunkin’ U.S. comparable store sales decline of 2.0%; comparable store sales growth of 3.5% in the first 10 weeks of the quarter, including positive ticket and traffic, was offset by a comparable store sales decline of 19.4% in the last three weeks of the quarter.
Baskin-Robbins U.S. comparable store sales growth of 1.8%; comparable store sales growth of 11.0% in the first 10 weeks of the quarter, including positive ticket and traffic, was partially offset by a comparable store sales decline of 23.3% in the last three weeks of the quarter.
Seven net new Dunkin’ locations were added in the U.S. inclusive of the closure of 12 Speedway locations; total of 38 net new Dunkin‘ and Baskin-Robbins locations globally. Revenues increased 1.3%. Diluted EPS of $0.63, unchanged from the prior year period. Diluted adjusted EPS of $0.67, unchanged from the prior year period.
Due to the uncertainty related to the duration and impact of the COVID-19 pandemic, the Company withdraws its fiscal year 2020 targets and long-term targets. The Company’s Board of Directors is suspending its regular dividend program.
“Prior to the crisis, we experienced strong first quarter performance across the system, including Dunkin’ U.S. which was on track to have its highest quarterly comps in more than six years and positive traffic,” said Dave Hoffmann, Dunkin’ Brands Chief Executive Officer.
“With the number one priority being the safety of crew members and our guests, early in the crisis we implemented strong safety measures at our restaurants with gloves, masks, and plexiglass shields, and now we are shipping an infrared thermometer to every U.S. restaurant to help monitor crew health. Solidarity with our great franchisees has never been stronger, and as a 100-percent franchised business we are supporting our franchisees and will continue to focus on their overall business health. In addition to the relief we are providing to them, Dunkin’ Brands is very grateful for the support from the Federal government to all U.S. small business owners, including many of our franchisees.”
Hoffmann continued, “At Dunkin’ Brands, we feel an obligation to do our part to keep America working by avoiding any corporate furloughs. Our focus has been to preserve our strong balance sheet by aggressively reducing operating expenses and preserving cash, including suspending our quarterly dividend and share repurchase programs.
Simultaneously, our management team and Board of Directors are voluntarily taking salary and fee reductions with the savings generated going to the Dunkin’ Brands Family Fund, which supports Dunkin’ and Baskin-Robbins crew members in times of crisis. Throughout this pandemic, we have been guided by our corporate values of strong, smart, and kind, which includes striving to do the right thing for our communities.”
“This morning we announced that our Board of Directors has suspended our regular dividend program, which will result in cash savings of approximately $33 million in the second quarter, and reinforces our already strong balance sheet.
We believe a temporary suspension of our dividend and share repurchase program is the prudent and responsible thing to do in this time of unprecedented uncertainty,” said Kate Jaspon, Chief Financial Officer, Dunkin’ Brands Group, Inc. “Additionally, due to this uncertainty and the impact of COVID-19 on financial and operational results, we are withdrawing both our fiscal 2020 and long-term growth targets.”
