Shares of Dunkin' Brands Group Inc. (DNKN) - Get Report fell Thursday after the parent company of Dunkin' Donuts and Baskin-Robbins revealed stronger-than-expected fourth-quarter profit but lower-than-expected revenue and weaker same-store sales.
Shares of Dunkin' slipped by 3% to close at $66.79 in Thursday's trading on the Nasdaq Stock Exchange.
Dunkin' said net income for its fourth quarter was $53.2 million, or 64 cents a share, vs. $134.7 million, or $1.47 a share, a year earlier. Excluding non-recurring items, adjusted per-share earnings were 68 cents, above the 61-cent estimate of analysts surveyed by FactSet.
Revenue, however, came in at $319.6 million, well below the FactSet consensus estimate of $330 million. What's more, same-store sales at the company's U.S. chains were flat compared to the FactSet consensus of 1.6% growth. Baskin-Robbins U.S. same-store sales dropped 3.7% vs. analysts' expectations of a 0.2% decline.
"While we did not drive consistent traffic momentum for the full year, we laid the foundation for future growth and, most importantly, along with our franchisees, are unified and well-positioned to capitalize in 2019 on our brand promise of 'great coffee, fast,'" Dunkin' U.S. CEO David Hoffmann said in a statement.
Separately, Dunkin' said it has raised its quarterly dividend to 37.5 cents a share from 34.75 cents, with the new dividend payable March 20 to shareholders of record on March 11.