Dunkin’ Brands Q3 net income soars 36%

Dunkin’ Brands, the Canton, Massachusetts-based parent of Dunkin’ Donuts and Baskin-Robbins, reported growth in same-store sales, unit count and profit in the Sept. 27-ended third quarter, despite what chief executive Nigel Travis called “ongoing challenges with the economy and a highly competitive QSR breakfast and coffee environment.” The company’s net income rose 36 percent to $54.7 million, or 52 cents per diluted share, compared with $40.2 million, or 37 cents per share, a year earlier. Revenue rose 3.4 percent to $192.6 million, reflecting 197 new-store openings during the period and same-store sales increases at both Dunkin’ Donuts and Baskin-Robbins. Dunkin’ Donuts’ comparable sales rose 2 percent in the United States but fell 2.9 percent in the international system. Similarly, Baskin-Robbins reported a 5.8-percent gain in domestic same-store sales but a 1.5-percent decline in comparable sales outside the United States. “We are focused on driving balanced growth by capturing incremental beverage occasions through new-product news, such as the launch of Dark Roast coffee, targeted discounting and leveraging innovation to deliver strong morning food results,” Travis said in a statement. “Franchisee restaurant-level economics remain highly compelling as demonstrated by our strong third-quarter restaurant growth.” The brand projects that its system in the United States could ultimately support 17,000 locations, up from the 15,000-store target laid out during Dunkin’ Brands’ 2011 initial public offering.