Dunkin' Brands Group
The 10-second takeaway
For the quarter ended June 29 (Q2), Dunkin' Brands Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Gross margins shrank, operating margins grew, net margins increased.
Dunkin' Brands Group notched revenue of $182.5 million. The 19 analysts polled by S&P Capital IQ expected revenue of $184.1 million on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $172.4 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 $0.41. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. Non-GAAP EPS of $0.41 for Q2 were 24% higher than the prior-year quarter's $0.33 per share. GAAP EPS of $0.38 for Q2 were 153% higher than the prior-year quarter's $0.15 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 76.4%, 450 basis points worse than the prior-year quarter. Operating margin was 39.5%, 140 basis points better than the prior-year quarter. Net margin was 22.4%, much better 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 $0.43.
Next year's average estimate for revenue is $707.7 million. The average EPS estimate is $1.52.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 188 members out of 287 rating the stock outperform, and 99 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Dunkin' Brands Group a green thumbs-up, and 28 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 $42.69.
Does Dunkin' Brands Group have what it takes to execute internationally? Take a look at some American restaurant concepts that are generating profits in all over the globe in, "3 American Companies Set to Dominate the World." It's free for a limited time. Click here for instant access to this free report.
- Add Dunkin' Brands Group to My Watchlist.