Yahoo Finance Dunkin’ Brands Mixed 2Q15 Results: What Should Investors Think?
Dunkin' Brands' Mixed 2Q15 Results: What Should Investors Think?
Dunkin’ Brands’ 2Q15 results
Most known for donuts, Dunkin’ Brands (DNKN) has returned an impressive 25% return year-to-date. This is nowhere close to coffee pioneer Starbucks’s (SBUX) 41 %, but it’s still better than the broader Consumer Discretionary Select Sector SPDR ETF’s (XLY) 10% return to date. Currently, Starbucks (SBUX), McDonald’s (MCD), and Yum! Brands (YUM) form 5.5% of XLY’s portfolio.
Dunkin’ Brands (DNKN) released its 2Q15 earnings on July 23, 2015, with earnings per share of $0.50, which beat analysts’ estimate of $0.48. In this series, we’ ll cover the following:
why Dunkin’ Brands’ shares have dropped 7% since its 2Q15 earnings release
how key metrics such as same-store sales growth have performed across segments
key developments and management guidance for the company
Dunkin’ Brands’ valuation compared to its peers
Company overview
Dunkin’ Donuts is a café restaurant concept in the popular fast food and fast casual restaurant concepts in the United States. Dunkin’ Brands (DNKN) operates two brands under its umbrella: Dunkin’ Donuts and Baskin-Robbins. Dunkin’ Donuts falls under the limited service café category of restaurants. The menu includes several types of breakfast sandwiches and bakery items such as bagels, donuts, cookies, croissants, Danishes, and muffins. It also serves flavored , decaf, and regular coffee as well as iced and frozen beverages. Baskin-Robbins is a limited service restaurant offering ice cream and related products.
As of 2Q15, Dunkin’ Brands had more than 19,000 restaurants or points of distribution. Dunkin’ Brands operates a franchise-heavy model with 99% of its restaurants as franchises.
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