Stock Monitor: Chuy's Holdings Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 21, 2018 / If you want access to our free earnings report on Dunkin' Brands Group, Inc. (NASDAQ: DNKN), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DNKN. The Company released its financial results on April 26, 2018, for the first quarter of the fiscal year 2018 (Q1 FY18). The Canton, Massachusetts-based Company reported a growth of 21.6% y-o-y in its adjusted earnings per share (EPS), outshining market consensus estimates. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
Dunkin' Brands reported total revenues of $301.34 million in Q1 FY18, up from the $296.36 million recorded in Q1 FY17. However, The Company's total revenue numbers fell marginally short of market forecasts of $301.4 million. The Company attributed this growth to an increased royalty income as a result of a system-wide sales growth, as well as an increase in advertising fees and related income, offset by a decrease in the sales of ice cream and other products.
The quick service restaurateur's net income increased to $50.15 million, or $0.57 per diluted share, in Q1 FY18 from $44.29 million, or $0.48 per diluted share, in Q1 FY17. The Company's adjusted net income stood at $54.38 million, or $0.62 per diluted share, in the reported quarter compared to $47.52 million, or $0.51 per diluted share, in Q1 FY17. Furthermore, the Company's diluted adjusted net income outperformed market expectations of $0.52 per diluted share.
For the quarter ended March 31, 2018, Dunkin' Brands' franchisees and licensees inaugurated 71 net new restaurants across the globe. This included 56 net new Dunkin' Donuts brand store across US locations; 6 net new Baskin-Robbins US locations; 5 net new Baskin-Robbins International locations; and 4 net new Dunkin' Donuts International locations.
For Q1 FY18, the Company's global system-wide sales grew 5.1% to $2.66 billion y-o-y from $2.53 billion in the year ago same period, primarily due to global store development and Baskin-Robbins International comparable store sales growth.
During Q1 FY18, the Canton, Massachusetts-based Company's operating margins improved to $89.83 million, or 29.8% of total revenues, compared to $86.77 million, or 29.3% of total revenues, in Q1 FY17. The improved margins reflected the increase in royalty income and a reduction of general and administrative (G&A) expenses. Furthermore, the Company's adjusted margin improved to $95.71 million, or 31.8% of total revenues, in Q1 FY18 from $92.15 million, or 31.1% of total revenues, in Q1 FY17.
Dunkin' Donuts US segment's total revenues rose 2.8% to $139.91 million y-o-y in Q1 FY18. During the reported quarter, the segment's system-wide sales grew 3.0% to $2.02 billion y-o-y compared to $1.96 billion in the quarter ended April 01, 2017. Furthermore, the segment reported a profit of $105.06 million in Q1 FY18, which came in above the $101.69 million recorded in the year ago comparable quarter.
For Q1 FY18, Dunkin' Donuts International segment reported total revenues of $5.37 million, up 11% from $4.83 million in Q1 FY17. The comparable store sales grew 2.1% in the reported quarter versus a decline of 0.2% in the year ago corresponding quarter. For Q1 FY18, the segment's profit rallied 124.7% to $3.21 million.
Baskin-Robbins US segment's total revenues came in at $10.51 million in Q1 FY18 compared to $10.58 million in the previous year's same quarter. The segment's comparable sales fell 1.0% during Q1 FY18 versus a comparable stores sales decline of 2.4% in Q1 FY17. Furthermore, the segment's profit also fell to $7.24 million in Q1 FY18 from $7.38 million in Q1 FY17.
For the reported period, Baskin-Robbins International segment's total revenues fell 1.5% to $25.89 million y-o-y. However, the segment reported a 10% rise in comparable sales during the quarter compared to a 2.0% y-o-y decline in Q1 FY17. Additionally, the segment's profit declined 8.9% to $7.44 million in the reported quarter.
Cash Matters and Balance Sheet
During the three months ended March 31, 2018, the Company's net cash used in operating activities was $5.80 million compared to a net cash used in investing activities of $3.68 million in the year ago comparable period. Dunkin' Brands had cash, cash equivalents, and restricted cash worth $422.72 million at the close of its books on March 31, 2018, versus $1.11 billion as on December 26, 2017. The Company's long-term debt stood at $3.03 billion as on March 31, 2018, compared to $3.04 billion as on December 30, 2017.
Dividend and Share Repurchase
In a separate press release on April 26, 2018, Dunkin' Brands' Board of Directors announced a quarterly cash of $0.3475 per share of common stock dividend to its common shareholders. The dividend will be paid on June 06, 2018, to all shareholders of record as of the close of business on May 29, 2018.
During Q1 FY18, the Company entered into a $650 million accelerated share repurchase program.
In its guidance for the full year FY18, the Company continues to expect a low-to-mid single digit revenue growth. Meanwhile, the Company raised its GAAP diluted EPS to be in the range of $2.49 to $2.58 from the prior outlook range of $2.20 to $2.29. Moreover, the Company's diluted adjusted EPS is now expected to be between $2.69 and $2.74, up from the previous expectation range of $2.40 to $2.45.
Stock Performance Snapshot
May 18, 2018 - At Friday's closing bell, Dunkin' Brands Group's stock was marginally up 0.12%, ending the trading session at $65.91.
Volume traded for the day: 661.86 thousand shares.
Stock performance in the last month – up 8.03%; previous three-month period – up 5.22%; past twelve-month period – up 18.16%; and year-to-date – up 2.23%
After last Friday's close, Dunkin' Brands Group's market cap was at $5.46 billion.
Price to Earnings (P/E) ratio was at 28.52.
The stock has a dividend yield of 2.11%.
The stock is part of the Services sector, categorized under the Restaurants industry.
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