Dunkin' Brands Group
The 10-second takeaway
For the quarter ended March 30 (Q1), Dunkin' Brands Group met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share increased.
Gross margins dropped, operating margins grew, net margins contracted.
Dunkin' Brands Group booked revenue of $161.9 million. The 17 analysts polled by S&P Capital IQ predicted revenue of $160.6 million on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $152.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.29. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. Non-GAAP EPS of $0.29 for Q1 were 16% higher than the prior-year quarter's $0.25 per share. GAAP EPS of $0.22 for Q1 were 4.8% higher than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 78.7%, 180 basis points worse than the prior-year quarter. Operating margin was 37.5%, 350 basis points better than the prior-year quarter. Net margin was 14.7%, 230 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $183.7 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $708.1 million. The average EPS estimate is $1.52.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 172 members out of 273 rating the stock outperform, and 101 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Dunkin' Brands Group a green thumbs-up, and 32 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 $38.94.
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