Dunkin' Brands beats Wall Street's expectations, same-store sales slide
Dunkin' Brands U.S. same-store sales growth plunged in the first quarter. Yahoo Finance's Alexis Christoforous and Brian Sozzi break down the details.
Video Transcript
BRIAN SOZZI: Let's take a look at a stock making some moves this morning, Dunkin' Brands. It beat first quarter estimates for sales and profits. But same-store sales here in the US have plunged, thanks to all those shutdowns across the country. Alexis, tough quarter for Dunkin' Brands. Number that stood out to me-- Dunkin' US same-store sales in the last three weeks of the first quarter, down 19.4%. That's definitely not the norm for a brand like Dunkin'.
ALEXIS CHRISTOFOROUS: Yeah, I mean, they're not getting all the people walking in there in the morning to get their morning coffee or their breakfast on the way to work. There's not the foot traffic that it would normally have. Also, want to mention Dunkin' suspending its regular dividend program. Says it's going to save it about $33 million in Q2.
It says it's doing this to reinforce an already strong balance sheet. They were sure to say they already have a strong balance sheet. But I know, Brian, you're going to be talking to Dunkin' Brands' CEO tonight. What do you want to know from him?
BRIAN SOZZI: Want to know about-- a little bit more on some of the trends we're seeing in the business currently. Buried in the bottom of their earnings release, Alexis, they note that Dunkin' US same-store sales are down 25%. In the early part of April, same-store sales were down 35%. So the main question here, has the Dunkin' US business bottomed just yet? Definitely going to put that question to CEO Dave Hoffman. We'll have that interview tomorrow on Yahoo Finance Live.
