Dunkin' Brands (DNKN) Q4 Earnings Top Estimates, Sales Lag
Zacks Investment Research | Feb 07, 2019 09:37PM ET
Dunkin' Brands Group, Inc. (NASDAQ:DNKN) reported mixed results for the fourth quarter of 2018, wherein earnings surpassed the Zacks Consensus Estimate but revenues lagged the same. Notably, the reported quarter marked the fifth straight quarter of an earnings beat.
Adjusted earnings of 68 cents per share surpassed the consensus estimate of 62 cents by 9.7%. The bottom line also improved 41.7% on a year-over-year basis, driven by rise in net income and fall in shares outstanding.
Revenues were up 1.5% year over year to $319.6 million but lagged the consensus mark of $330 million. The top line improved, primarily owing to rise in royalty income from system-wide sales growth, and an increase in advertising fees and related income.
The company’s global system-wide sales rose 2.8% from the prior-year quarter. System-wide sales were favored by global store development.
Following the quarterly results, the company’s shares declined 3%. In a year’s time, the stock has surged 14%, underperforming the Zacks Investment Research
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