Dunkin’ Donuts International systemwide sales increased 1.4 percent from the prior year period, driven by sales growth in Germany and the Middle East. On a constant currency basis, systemwide sales increased by approximately 2 percent.
Dunkin’ Donuts International revenues of $4.2 million represented an increase of 13.7% year-over-year. The increase in revenue was primarily a result of increased franchise fees driven by additional gross development and increased royalty income.
Segment profit (loss) for Dunkin’ Donuts International declined $3.5 million to a loss of $1.1 million, primarily due to $3.7 million in write-downs related to our investments in the Dunkin’ Donuts Spain joint venture, offset by revenue growth.
Baskin-Robbins U.S. revenue increased 2.0 percent from the prior year period to $11.9 million due primarily to increased royalty income driven by a 4.2 percent increase in systemwide sales as a result of comparable store sales growth of 3.2 percent, offset by a decline in rental income due to a decline in the number of leased locations.
Segment profit for the Baskin-Robbins U.S. segment increased $0.3 million, or 3.2 percent, year-over-year primarily as a result of increased revenues.
Baskin-Robbins International systemwide sales decreased 2.6 percent from the prior year period driven by an unfavorable impact of exchange rates on sales in Japan, offset by sales growth in South Korea and the Middle East. On a constant currency basis, systemwide sales increased by approximately 7 percent.
Baskin-Robbins International revenues increased 10.5 percent year-over-year to $32.8 million primarily from increased sales of ice cream products to the Middle East and an increase in distribution costs billed to customers, offset by a decline in sales of ice cream products to Australia due to timing of shipments.
Segment profit increased 4.7 percent year-over-year to $16.8 million, resulting from an increase in net margin on ice cream driven by the increase in sales to the Middle East and reduced cost of ice cream products primarily resulting from the shift in manufacturing to Dean Foods, offset by $0.5 million of additional costs associated with the Baskin-Robbins Australia sale transaction.
Company updates
The Company announced yesterday that the Board of Directors declared a fourth quarter cash dividend of $0.19 per share, payable on November 26, 2013 to shareholders of record as of the close of business on November 18, 2013.
Conference Call
As previously announced, Dunkin’ Brands will be holding a conference call today at 8:00 am ET hosted by Nigel Travis, Chief Executive Officer, and Paul Carbone, Chief Financial Officer. The dial-in number is (866) 393-1607 or (914) 495-8556, conference number 76546192.
Dunkin’ Brands will broadcast the conference call live over the Internet at http://investor.dunkinbrands.com. A replay of the conference call will be available on the Company’s website at http://investor.dunkinbrands.com.
Source: Dunkin’ Brands
