NEW YORK (TheStreet) -- Shares of Dunkin Brands Group Inc. (DNKN) - Get Dunkin' Brands Group, Inc. Report are lower by 1.57% to $46.26 in pre-market trading on Tuesday morning, after the coffee maker slashed its full year 2015 guidance to figures below analysts' expectations.
For the full year Dunkin has forecast for earnings of $1.83 per share to $1.87 per share compared to its previous guidance of $1.88 per share to $1.91 per share.
The consensus estimate is for earnings of $1.91 per share for the year.
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Dunkin has also announced a $700 million share buyback program and that it has completed its debt refinancing as planned.
"We are very pleased to complete the refinancing of our debt at what we believe is an attractive rate for the new securitized debt structure, which provides us with the stability of fixed rate interest over the next several years," Dunkin CEO Nigel Travis said.
Separately, TheStreet Ratings team rates DUNKIN' BRANDS GROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DUNKIN' BRANDS GROUP INC (DNKN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 8.7%. Since the same quarter one year prior, revenues slightly increased by 3.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- DUNKIN' BRANDS GROUP INC has improved earnings per share by 40.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DUNKIN' BRANDS GROUP INC increased its bottom line by earning $1.36 versus $0.94 in the prior year. This year, the market expects an improvement in earnings ($1.76 versus $1.36).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 36.0% when compared to the same quarter one year prior, rising from $40.22 million to $54.70 million.
- The gross profit margin for DUNKIN' BRANDS GROUP INC is currently very high, coming in at 80.12%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.39% significantly outperformed against the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, DUNKIN' BRANDS GROUP INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- You can view the full analysis from the report here: DNKN Ratings Report