Dunkin Brands' (DNKN) CEO Travis Focused on the Future

Dunkin Brand's (DNKN) CEO Travis Nigel joined CNBC's 'Closing Bell' today to comment on the company's second quarter earnings and to preview its future.
By Giovanni Bruno ,

NEW YORK (TheStreet) --Dunkin Brands (DNKN) - Get Report announced second quarter earnings today that indicated mixed results, based on Wall Street's expectations. The company posted adjusted profit of 57 cents per share, above analysts' estimates of 56 cents per share. However, revenue only totaled $216.3 million, which were below expectations of $220.2 million.

Dunkin Brands CEO Nigel Travis joined CNBC's "Closing Bell" to provide further insight into the report. 

"I think we did pretty well, it wasn't a spectacular quarter, but it was a quarter where we executed some very important strategies for the future. We launched Cold Brew, which has had a very good reception, and On-The-Go-Ordering during the quarter," Travis said.

These two initiatives which Dunkin Brands rolled out this quarter have been what Travis describes as "game changers," and what will continue to set them apart from the competition. Moreover, Travis noted that the introduction of the On-The-Go Ordering could be the biggest operational change since Drive-Thrus.

Another substantial move Dunkin Brands is executing is to turn away from corporate stores, and instead focus solely on franchises.

"We'll probably end up with no company stores in the near future, we feel the time for them has passed. We love supporting our franchisees, and focusing on franchise economics and relationships," Travis explained.

In light of the upcoming presidential election, Travis would not comment from a political standpoint, however, from a business perspective, he noted the election's importance to the supporting of business franchises. 

"Most people don't seem to realize that most of our revenue, doesn't come from our comp store sales, it comes from our development. So we need to make sure our franchisees have a great environment to flourish and I can tell you that will mean more stores for us in the future," Travis noted.

Shares of Dunkin Brands are lower 0.70% to $46.74 after the closing bell on Thursday. 

Separately, TheStreet Ratings as a "Hold" with a ratings score of "C+." The primary factors that have impacted TheStreet Ratings are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and good cash flow from operations. However, as a counter to these strengths, TheStreet Ratings  finds that the stock has had a generally disappointing performance in the past year.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

You can view the full analysis from the report here: DNKN

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