US-based Dunkin’ Brands Group has reported revenues of $350.6m for the second quarter (Q2) ending 30 June 2018, a 4.9% increase from $334.2m for the same period last year.
Revenue 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.
The restaurant company also reported operating income of $113.9m, a 6.6% decline fall to $106.8m for the same period in the previous year.
Net income of the company was $60.5m for the second quarter, an 18.4% gain compared to $51.1m for the earlier 12 months.
Dunkin’ Donuts US chief executive officer and president David Hoffmann said: “Our second quarter 2018 Dunkin’ Donuts US comparable store sales growth is an early sign of the progress we are making with our ‘Blueprint for Growth’.
“Our highest quarterly beverages sales on record underscored that we’re on track towards our goal to be the nation’s leading beverage-led, on-the-go brand.
“Along with our franchisees, we leveraged national marketing to launch the most comprehensive value programme in the brand’s history driving breakfast sandwich sales, which more than offset the impact of menu simplification.”
The QSR chain opened 96 new Dunkin’ Donuts and Baskin-Robbins locations worldwide, including 64 net new Dunkin’ Donuts in the US.
Hoffmann added: “We have strong alignment with our franchisees on the brand’s strategy and remain on track to open 50 next-gen, new and remodelled restaurants this year with Dunkin’ Donuts US again expected to be one of the fastest-growing QSR brands by unit count in the country for 2018.”
According to the Dunkin’ Donuts CFO Kate Jaspon, the brand is planning to make investments rounding off to approximately $100m in equipment to support its beverage-led, on-the-go strategy and technology infrastructure.
Jaspon noted: “We believe that by making these investments, we, along with our franchisees, will be able to implement certain ‘Blueprint’ initiatives more quickly.”