Shares of Dunkin' Brands (DNKN) bubbled up nearly 2% to $75 Thursday after the parent company of Dunkin' and Baskin-Robbins beat Wall Street's first-quarter earnings estimates.
The Canton, Massachusetts-based quick service restaurant operator said earnings came to $52.3 million, or 63 cents a share, up from $50.2 million, or 57 cents a share. Adjusted earnings were 67 cents a share, beating analysts' forecasts of 62 cents.
Revenue totaled $319.1 million, up from $301.3 million a year ago, and ahead of Wall Street's estimate of $313 million. Global systemwide sales grew 4.1% in the quarter, the company said, primarily due to global store development, Dunkin's U.S. comparable store sales growth, and Dunkin' International comparable store sales growth.
Same-store sales increased 2.4%, beating analysts' estimates of 1.4%.
U.S. comparable-store sales grew in the first quarter as an increase in average ticket was partially offset by a decrease in traffic, Dunkin' Brands said. The increase in average ticket was driven by strategic pricing increases and favorable mix shift to premium priced espresso and frozen beverages, as well as the company's Go2s value breakfast sandwich platform.
Baskin-Robbins U.S. comparable-store sales dropped 2.8% as a decrease in traffic was partially offset by an increase in average ticket. Unfavorable weather impact of more than 300 basis points significantly affected all product categories. The increase in average ticket was driven by strategic pricing increases coupled with favorable mix shift to beverages, take home quarts, and desserts.