Stock Monitor: Bloomin' Brands Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 02, 2018 / Active-Investors.com has just released a free earnings report on Dunkin' Brands Group, Inc. (NASDAQ: DNKN) ("DNKN"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DNKN. The Company reported its financial results on February 06, 2018, for the fourth quarter and for the full year ended December 30, 2017. The Company reported results for the 13-week Q4 FY17 and 52-week FY17 compared to the 14-week Q4 FY16 and 53-week FY16. DNKN made significant progress on all parameters in Q4 FY17 and FY17. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the fourth quarter of the fiscal year 2017, DNKN's total revenues reached $277.14 million, reflecting an increase of 5.30% from $215.71 million in Q4 FY16. Increased franchise fees driven by additional renewal income led to this growth, which was slightly offset by a decrease in gross openings. The Company's revenue numbers surpassed analysts' consensus estimates of $223 billion.
During Q4 FY17, DNKN's total operating costs and expenses were $109.64 million compared to $107.28 million in Q4 FY16, reflecting an increase of 2.19%. The Company's operating income advanced 5.48% to $120.13 million in the reported quarter from $113.88 million in the year-ago same quarter. The Company's operating profit margin was 52.89% for Q4 FY17, up from 52.79% in Q4 FY16.
DNKN's net income was $195.49 million for Q4 FY17, an increase of 248.35% from $56.12 million in Q4 FY16. The Company's diluted earnings per common share advanced 249.18% to $2.13 in the quarter under review from $0.61 in the comparable period of last year. The Company's reported earnings included amortization expenses on other intangible assets; long-lived asset impairment charges; and loss on debt extinguishment and refinancing transactions. It also included the benefit from Bertico-related litigation and a net tax benefit due to the enactment of the federal Tax Cuts and Jobs Act 2017 (TCJA). For Q4 FY17, the Company's adjusted diluted earnings per share (EPS), after adjusting for non-recurring and non-core items, remained flat at $0.64 compared to Q4 FY16, but were still higher than analysts’ consensus estimates of $0.63.
For the full fiscal year ended December 30, 2017, DNKN's total revenues were $860.50 million, an increase of 3.81% from $828.89 million in FY16. The Company's total operating costs and expenses fell 2.0% to $429.32 million y-o-y, while its operating income advanced 7.79% to $447.0 million y-o-y in FY17. DNKN's net income jumped 79.42% to $350.91 million in FY17 from $195.58 million in FY16. The Company's diluted EPS rose 80.09% to $3.8 for FY17 from $2.11 in FY16. The Company's diluted EPS, excluding special items, were $2.43 for FY17, up 7.52% from $2.26 in FY16.
During Q4 2017, DNKN's Dunkin' Donuts US segment's net revenues were $177.75 million compared to $163.07 million in Q4 FY16, reflecting an increase of 9%. This was mainly due to an increase in the segment's franchise fees of 123.1% y-o-y, driven by additional renewal income. The segment's profit increased 7.78% to $141.21 million for the quarter ended December 30, 2017, from $131.01 million in the same period of last year. The segment reported a comparable store sales growth rate of 0.8% in Q4 FY17 compared to 1.9% in Q4 FY16.
For Q4 FY17, DNKN's Dunkin' Donuts International segment's net revenues dipped 6.01% to $5.63 million on a y-o-y basis, primarily due to a 61.2% decline in its franchise fees. In the reported quarter, the segment's profit fell 32.05% to $2.19 million from $3.22 million in Q4 FY16. However, the segment reported a comparable store sales growth rate of 1.6% in Q4 FY17 compared to a decline of 1.0% in Q4 FY16.
During Q4 FY17, DNKN's Baskin-Robbins US segment's net revenues surged 11.95% to $10.56 million on a y-o-y basis, led by a growth in franchise fees and increased sales of ice cream and other products. In the reported quarter, the segment generated an operating income of $5.44 million, up 6.29% from $5.12 million in Q4 FY16. The segment reported a comparable store sales growth rate of 5.1% in Q4 FY17 compared to a decline of 0.9 % in Q4 FY16.
For Q4 FY17, DNKN's Baskin-Robbins International segment generated net revenues of $25.80 million compared to $29.44 million in Q4 FY16, reflecting a decrease of 12.34%. This was mainly due to lower franchise fees and a decrease in sales of ice cream and other products. In the reported quarter, the segment's profit dipped 10.95% to $7.44 million from $8.35 million in Q4 FY16. The segment reported a comparable store sales growth rate of 3% in Q4 FY17 compared to 0.7% in Q4 FY16.
DNKN had cash and cash equivalents of $1.02 billion as on December 30, 2017, 181.75% higher than $361.43 million as on December 31, 2016. For the twelve months ended December 30, 2017, the Company's net cash flow from operating activities was $276.91 million, almost in-line with the $276.83 million recorded in Q4 FY16.
In the full fiscal year 2017, DNKN issued new long-term debt of $1.4 billion and repaid long-term debt $754.38 million. The Company paid cash dividends of $117 million during the reported year, an increase of 6.65% from $109.7 million in the previous year. The Company spent $127.19 million on repurchases of common stock, including accelerated share repurchases, in FY17 compared to $55 million in FY16.
For the full fiscal year 2018, DNKN expects EPS to be in the range of $2.20 to $2.29, and adjusted EPS to be between $2.40 and $2.45. The Company anticipates a low- to mid-single digit growth in revenues; a reduction to general and administrative (G&A) expenses of 5%; and mid- to high-single-digit growth in operating and adjusted operating income for FY18. DNKN estimates an effective tax rate of approximately 28% for FY18.
The Company intends to open more than 275 net new locations in the US, with about 50 NextGen restaurants, including both new and remodeled stores. For its Dunkin' Donuts US segment, the Company expects a comparable store sales growth rate of approximately 1% in FY18.
On February 06, 2018, DNKN's Board of Directors declared a quarterly cash dividend of $0.3475 per share, payable on March 21, 2018, to shareholders of record as of the close of business on March 12, 2018. This is an increase of 7.75% from the previous quarter's dividend.
Stock Performance Snapshot
March 01, 2018 - At Thursday's closing bell, Dunkin' Brands Group's stock fell 2.47%, ending the trading session at $58.41.
Volume traded for the day: 1.81 million shares, which was above the 3-month average volume of 1.05 million shares.
Stock performance in the last three-month – up 2.55%; previous six-month period – up 14.15%; and past twelve-month period – up 5.26%
After yesterday's close, Dunkin' Brands Group's market cap was at $5.27 billion.
Price to Earnings (P/E) ratio was at 25.96.
The stock has a dividend yield of 2.38%.
The stock is part of the Services sector, categorized under the Restaurants industry.
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