UPDATE: Dunkin Brands tops earnings estimates as same-store sales rise 0.9%
Dunkin Brands Group Inc. (DNKN) posted third-quarter earnings that topped estimates as it achieved positive same-store sales during the pandemic. The company had net income of $74.0 million, or 89 cents a share, in the quarter, up from $72.4 million, or 86 cents a share, in the year-earlier period. Adjusted per-share earnings came to 93 cents, ahead of the 80 cents FactSet consensus. Revenue rose to $361.5 million from $355.9 million, also ahead of the $345.0 million FactSet consensus. U.S. same-store sales rose 0.9%, while the FactSet consensus was for a decline of 3.8%. The company ended the quarter with $341 million of unrestricted cash in the U.S., excluding cash reserved for gift cards and advertising funds. "In response to changing consumer patterns, we moved quickly to adapt our menu, introducing new beverages and snacking items designed to appeal to both morning and afternoon traffic, as well as younger consumers," Chief Executive Dave Hoffman said in a statement. "We also doubled down on digital, leveraging the strength of our assets to give customers an even faster, frictionless experience." Same-store sales rose as average ticket increased and offset a drop in traffic caused by the pandemic. The company said it has held preliminary talks with Inspire Brands and is deferring its fourth-quarter cash dividend. Shares were not active premarket, but have gained 33% in the year to date, while the S&P 500 has gained 1.3%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 29, 2020 10:52 ET (14:52 GMT)
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