Dunkin' Brands Q4 Profit Triples on Lower Revenues; Increases Dividend +27% (DNKN)

Dunkin’ Brands Q4 Profit Triples on Lower Revenues; Increases Dividend +27% (DNKN)


On Thursday quick service restaurant operator Dunkin Brands Group Inc (DNKN) reported a big spike in its fourth quarter profit with adjusted earnings beating the consensus view.

The Canton, Massachusetts-based company said its fourth quarter profit tripled to $34.3 million, or 32 cents per share, up from $11.6 million, or 10 cents per share, earned in the year earlier period. Adjusted EPS came in at 34 cents.

The parent of Dunkin Donuts and Baskin-Robbins posted a revenue of $161.7 million, slipping from $168.5 million.

According to analysts polled by FactSet, the company was expected to earn 33 cents per share on revenues of $170.7 million.

U.S. comparable store sales were up +3.2% at Dunkin Donuts and +1.5% at Baskin-Robbins. Internation comps were flat.

Looking ahead to 2013, DNKN is expecting an adjusted full year EPS between $1.48 and $1.51. Analysts are looking for an EPS of $1.52.

The board also announced that it is raising its quarterly dividend from 15 cents per share to 19 cents per share. The annualized dividend is now 76 cents per share. The dividend is payable on February 20 with an ex-dividend date of February 7.

Dunkin shares were up 95 cents, or +2.66%, during morning trading on Thursday. The stock is up +32.76% over the past year.

The Bottom Line
Shares of Dunkin Brands (DNKN) will now have a dividend yield 2.07% based on Thursday’s intraday price of $36.67.

Dunkin Brands Group Inc (DNKN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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