US-based Dunkin’ Brands Group has reported revenues of $350m for the third quarter (Q3) ending 29 September 2018, a 6% increase from $330.1m for the same period last year.
The growth is due to increased advertising fees and related income, as well as a rise in royalty income as a result of system-wide sales gains.
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The restaurant company has also reported an operating income of $111.6m, a 6% increase compared to $105.3m for the same period last year.
The company’s net income was $66.1m for the second quarter, a 60.5% gain compared to $41.2m last year.
Dunkin’ Brands CEO David Hoffmann said: “We delivered positive comparable store sales for all four of our business segments.
“Dunkin’ US comparable store sales growth was led by strong beverage sales, coupled with new product innovation, and the Dunkin’ Run snacking platform which delivered our highest afternoon comparable store sales growth in more than two years.
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By GlobalData“Additionally, our new simplified branding for Dunkin’ and our recently announced plans to transform the espresso experience at Dunkin’ demonstrate our commitment to our beverage-led strategy and, importantly, we have strong alignment with our franchisees around the world.”
The quick service restaurant chain opened 77 new restaurants, including 52 Dunkin’ Donuts US and 12 international locations, as well as 16 Baskin-Robbins international locations, offset by net closures of three Baskin-Robbins US locations.
Hoffmann added: “Earlier this year, we announced that we would be investing approximately $100m into Dunkin’ US, a substantial amount of which will be in equipment to support our multi-year plan to expand our beverage portfolio beyond traditional drip coffee, including new espresso equipment.
“We, along with our franchisees, who are significantly investing in this new programme, are excited to introduce the new Dunkin’ espresso to America in the fourth quarter.
“We are also pleased to have completed our previously announced $650m accelerated share repurchase programme during the third quarter, demonstrating our continued commitment to utilising our strong balance sheet to return capital to shareholders.”
Dunkin’ US comparable store sales grew by 1.3% in the third quarter, while Baskin-Robbins US comparable store sales grew by 1.8%. Global systemwide sales registered a growth of 5.2% in the third quarter.
