Dunkin’ Brands’ (DNKN) latest quarter was definitely not as frigid as a large cold brew.
The coffee and donut (and now Beyond Meat sandwich) chain trounced Wall Street’s second quarter sales and profit forecasts on Thursday. Dunkin’ said second quarter earnings came in at 86 cents a share, handily beating estimates of 77 cents a share. Total sales of $359.3 million was relatively in-line with analyst projections.
Dunkin’ Brands’ quarter was powered by its namesake division around the world. Same-store sales at Dunkin U.S. and international rose 1.7% and 5.6%, respectively, fueled by demand for new espresso beverages and combo offerings. The company also benefited from price increases taken by franchisees, which helped to counteract persistent traffic weakness.
“We are making some really smart investments, and they are starting to pay off,” Dunkin’ Brands CEO David Hoffmann said in an interview with Yahoo Finance. Hoffman has led the rollout of espresso and higher quality food offerings since assuming the CEO role in July 2018. “Internally, I would say our confidence is extremely high — we feel really good about where we are.”
It was a huge quarter for Dunkin’ on the digital front. Mobile orders spiked 30% from the prior year and represented about 4% of total transactions in the quarter, according to Hoffman. Total loyalty members on the Dunkin’ app rose by 1.1 million from the first quarter.
Dunkin’ now has 12 million loyalty members — the business represents about 13% of the company’s overall sales. The company lifted its full year earnings outlook to $3.02 to $3.05 a share from $2.94 to $2.99 a share previously.