CANTON, Mass., Dec. 18, 2014 /PRNewswire/ -- Dunkin' Brands
Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' Donuts
and Baskin-Robbins, today announced certain new or updated
performance expectations for 2015.
"This has been a challenging year for our businesses. We are
pleased that Dunkin' Donuts' 2014 U.S. comparable store sales and
transactions remained positive, although not as positive as we
hoped because of continued pressure on the consumer and
decelerating sales of packaged coffee in our restaurants. We expect
these trends to continue into next year. Internationally we are
making progress in retooling our businesses, but the joint ventures
in Korea and Japan remain under
pressure and are expected to negatively impact next year's results.
Given this, we are updating and providing additional performance
expectations for fiscal year 2015, and while our earnings growth
expectations for 2015 are below our longer-term targets, we are
committed to returning to double-digit growth in the subsequent
years," said Nigel Travis, Chairman
& CEO, Dunkin' Brands Group, Inc.
Fiscal Year 2015 Targets:
- The Company expects Dunkin' Donuts U.S. comparable store sales
growth of 1 to 3 percent and Baskin-Robbins U.S. comparable store
sales growth of 1 to 3 percent.
- The Company expects that Dunkin' Donuts U.S. will add between
410 and 440 net new restaurants and expects Baskin-Robbins U.S.
will add between 5 and 10 net new
restaurants.
- Internationally, the Company is targeting opening 200 to 300
net new restaurants across the two brands. It expects net income of
equity method investments to be approximately $13 million.
- Globally, the Company expects to open between 615 and 750 net
new units.
- The Company expects revenue growth of between 5 and 7 percent
and adjusted operating income growth of between 6 and 8
percent.
- The Company expects adjusted earnings per share of $1.88 to $1.91. This target is based on diluted
weighted average shares for the full year of 106 million.
- The Company expects free cash flow growth of greater than 15
percent.
Mr. Travis continued, "We expect full year 2014 adjusted
earnings per share to be $1.75 to
$1.76 and full-year Dunkin' Donuts U.S. comparable
store sales growth to be approximately 1.4 percent. Additionally,
we expect to finish the year near the top end of our Dunkin' Donuts
U.S. development growth target of 380 to 410 net new restaurants,
and 2014 free cash flow growth should be greater than 15
percent. We continue to believe Dunkin' Brands has tremendous
growth prospects, led by the opportunity for 17,000 plus Dunkin'
Donuts restaurants in the U.S. and over 30,000 restaurants for both
brands globally."
The Company will report fourth quarter and fiscal year 2014
results on Thursday, February 5,
2015.
About Dunkin' Brands Group, Inc.
With more than 18,000 points of distribution in nearly 60
countries worldwide, Dunkin' Brands Group, Inc. (Nasdaq: DNKN) is
one of the world's leading franchisors of quick service restaurants
(QSR) serving hot and cold coffee and baked goods, as well as
hard-serve ice cream. At the end of Q3 2014, Dunkin' Brands'
nearly 100 percent franchised business model included more than
11,000 Dunkin' Donuts restaurants and more than 7,400
Baskin-Robbins restaurants, which are primarily owned and operated
by approximately 2,000 franchisees, licensees and joint venture
partners. For the full-year 2013, the Company had
franchisee-reported sales of approximately $9.3 billion. Dunkin' Brands Group, Inc. is
headquartered in Canton, Mass.
Forward-Looking Statements
Certain statements contained herein are not based on historical
fact and are "forward-looking statements" within the meaning of the
applicable securities laws and regulations. Generally, these
statements can be identified by the use of words such as
"anticipate," "believe," "could," "estimate," "expect," "feel,"
"forecast," "intend," "may," "plan," "potential," "project,"
"should," "would," and similar expressions intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. By their nature,
forward-looking statements involve risks and uncertainties because
they relate to events and depend on circumstances that may or may
not occur in the future. These risk and uncertainties include, but
are not limited to: the ongoing level of profitability of
franchisees and licensees; our franchisees' and licensees' ability
to sustain same store sales growth; successful westward expansion;
changes in working relationships with our franchisees and licensees
and the actions of our franchisees and licensees; our master
franchisees' relationships with sub-franchisees; the strength of
our brand in the markets in which we compete; changes in
competition within the quick-service restaurant segment of the food
industry; changes in consumer behavior resulting from changes in
technologies or alternative methods of delivery; economic and
political conditions in the countries where we operate; our
substantial indebtedness; our ability to protect our intellectual
property rights; consumer preferences, spending patterns and
demographic trends; the impact of seasonal changes, including
weather effects, on our business; the success of our growth
strategy and international development; changes in commodity and
food prices, particularly coffee, dairy products and sugar, and
other operating costs; shortages of coffee; failure of our network
and information technology systems; interruptions or shortages in
the supply of products to our franchisees and licensees; the impact
of food borne-illness or food safety issues or adverse public or
media opinions regarding the health effects of consuming our
products; our ability to collect royalty payments from our
franchisees and licensees; the ability of our franchisees and
licensees to open new restaurants and keep existing restaurants in
operation; our ability to retain key personnel; any inability to
protect consumer credit card data and catastrophic events.
Forward-looking statements reflect management's analysis as of
the date of this press release. Important factors that could cause
actual results to differ materially from our expectations are more
fully described in our other filings with the Securities and
Exchange Commission, including under the section headed "Risk
Factors" in our most recent annual report on Form 10-K. Except as
required by applicable law, we do not undertake to publicly update
or revise any of these forward-looking statements, whether as a
result of new information, future events or otherwise.
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SOURCE Dunkin' Brands Group, Inc.