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Dunkin' Brands (DNKN) Q4 Earnings and Revenues Beat Estimates

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Dunkin' Brands Group, Inc. operates through its Dunkin’ Donuts and Baskin-Robbins brands that serve hot and cold coffee and baked goods, as well as hard-serve ice cream.

Going forward, the company’s comps should gain from menu innovation and unit expansion plans. Moreover, various sales and digital initiatives undertaken by the company bode well. Further, the company’s multi-year partnership with Keurig Green Mountain and J.M. Smucker, to manufacture, market, distribute and sell Dunkin' K-Cup pods to retailers in the United States should continue to aid Dunkin Brands’ top line. The company’s focus on expanding its beverage portfolio also provides it with a great growth opportunity.

However, challenging comps growth in international markets at both its divisions is a potent headwind. Further, immense competition in the breakfast segment and lower-than-expected sale in ice-cream products could hurt the company’s top line in the near term.

Dunkin' Brands Group, Inc. Price

Investors should note that the consensus estimate for DNKN has been stable over the last 30 days. Meanwhile, DNKN’s earnings have been strong over the past few quarters. In fact, the company posted positive earnings surprises in three of the last four quarters, with an average beat of 4.81%.

DNKN currently has a Zacks Rank #2 (Buy) but that could change following Dunkin' Brands earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: DNKN beats on earnings. Our consensus earnings estimate called for earnings of 63 cents per share, and the company reported earnings of 64 cents per share.

Revenues: DNKN reported revenues of $227 million. This surpassed our consensus estimate of $223 million.

Key Stats to Note: In the third quarter, Dunkin’ Donuts U.S. comps grew 0.8% while the international division posted a 1.6% increase. Baskin-Robbins’ U.S. comps increased 5.1%, while the international segment posted a 3% growth.

Check back later for our full write up on this DNKN earnings report!

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