Dunkin' Brands Group Beats Analyst Estimates on EPS

Dunkin' Brands Group (Nasdaq: DNKN  ) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Dunkin' Brands Group missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share increased significantly.

Gross margins dropped, operating margins grew, net margins grew.

Revenue details
Dunkin' Brands Group reported revenue of $161.7 million. The 16 analysts polled by S&P Capital IQ anticipated net sales of $170.4 million on the same basis. GAAP reported sales were 4.0% lower than the prior-year quarter's $168.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.34. The 22 earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. GAAP EPS of $0.33 for Q4 were 230% higher than the prior-year quarter's $0.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 79.9%, 40 basis points worse than the prior-year quarter. Operating margin was 39.0%, 270 basis points better than the prior-year quarter. Net margin was 21.2%, 1,430 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $161.1 million. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $715.7 million. The average EPS estimate is $1.51.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 154 members out of 251 rating the stock outperform, and 97 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Dunkin' Brands Group a green thumbs-up, and 36 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dunkin' Brands Group is outperform, with an average price target of $35.11.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On January 31, 2013, at 6:33 PM, jonconnery wrote:

    There is nothing special about this business and it is no different than the craze of Krispy Kreme and will end up in the same ditch ! I know : I was a donut maker .. Take my word for it .. unless they start on the cup cake craze ... which I predict will also crash ! Maybe they are already cooking the books along with those unhealty sugar coated greasy donuts ??

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