Dunkin Brands, the parent company to Dunkin Donuts and Baskin-Robbins, reported second-quarter net income of $40.8 million, or 38 cents a share, compared to $18.5 million, or 15 cents a share in the year-earlier quarter.
The year-earlier quarter included a $20.7 million increase in the company's litigation reserve.
Dunkin's adjusted earnings per share of 41 cents for the quarter rose 24% over last year. Wall Street had forecasted the company to earn 40 cents a share for the June-ending quarter.Also see: Want to Own a Dunkin' Donuts Franchise? Know This First Shares were trading up 3.8% to $43.60 before the markets opened. Dunkin's U.S. same-store sales rose 4% compared to the same time a year earlier. The company attributed the U.S. comparable sales growth to higher average tickets and increased traffic coming to stores for new products such as new iced coffee flavors as well as afternoon products such as its chicken and tuna salad wraps and chicken sandwiches. The company said total franchisee reported sales rose 5.5% to $2.39 billion. A majority of Dunkin' Donuts stores are franchisee-owned. However, parent-company revenue of $182.5 million fell short of analysts' expectation of $183.09 million. Dunkin added 151 new stores in the second quarter, 63 of which were in the U.S. The company has a total of 17,718 stores between the two brands both within the U.S. and internationally. "We are pleased with our performance in the second quarter which was driven by strong comparable store sales and net unit development for Dunkin' Donuts U.S.," said Nigel Travis, chairman and CEO of Dunkin' Brands. "Innovative marketing and new product introductions, as well as a focus on delivering a great customer experience, continue to deliver attractive franchisee returns and exceptional results for Dunkin' Donuts in the U.S.," Travis said. "Additionally, we continue to see significant interest in restaurant development for Dunkin' Donuts in this country, and for the second consecutive quarter, Baskin-Robbins U.S. experienced positive net growth. On the international front, we continue to build the foundation for the long-term growth of both brands. Going into the second half of the year, we are confident about our business prospects and are steadfastly focused on delivering profitable growth for our franchisees and shareholders." -- Written by Laurie Kulikowski in New York. Follow @LKulikowski To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com. >To submit a news tip, email: email@example.com.
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