CANTON, MASS. — Net income of Dunkin’ Brands Group, Inc. in the year ended Dec. 29 was $108,308,000, up sharply from $34,442,000 in fiscal 2011. Adjusted net income was $149,700,000, up 47% from $101,744,000 in fiscal 2011.
Total revenues were $658,181,000, up 5% from $628,198,000, while operating income at Dunkin’ in fiscal 2012 rose 17% to $239,429,000 from $205,309,000.
For the fourth quarter ended Dec. 29, net income was $34,335,000, up 196% from $11,591,000 in the same period a year ago. Total revenues were $161,703,000, down 4% from $168,505,000.
“The fourth quarter was strong, and we finished 2012 delivering 15% plus adjusted operating income growth and nearly 40% adjusted earnings per share growth year-over-year," said Nigel Travis, chief executive officer of Dunkin’ Brands Group, Inc. and president of Dunkin’ Donuts U.S. “We have the unique combination of strong brand heritage and significant U.S. and global restaurant expansion opportunities, which we are capitalizing on to drive profitable growth for both our franchisees and shareholders. Our contiguous, strategic development approach is working, and we’re excited to begin selling Dunkin' Donuts franchises in California. Despite macro-economic instability and a tough competitive environment, consumer and franchisee demand for Dunkin’ Donuts is high, our franchisee relationships are strong, and we continue to leverage our asset-light business model giving us confidence to target 15% plus adjusted earnings per share growth in 2013.”
During fiscal 2012, Dunkin added 665 net new restaurants worldwide, including 291 net new Dunkin’ Donuts in the United States.
Dunkin’ Donuts U.S. had operating profit of $94,293,000 and total revenues of $128,117,000 in the fourth quarter, which compared with $92,004,000 and $123,892,000, respectively, in the same period a year ago.
The company said Dunkin’ Donuts U.S. comparable store sales grew 3.2% in the fourth quarter. The company said sales growth was driven by increased average ticket and higher traffic resulting from a continued focus on product and marketing innovation, including total coffee sales growth, led by flavored hot and iced espresso beverages; continued momentum across the core breakfast sandwich platform and strong sales of November’s limited-time-offer Smoked Sausage breakfast sandwich; continued growth in bakery sandwiches; and sales of limited time offer Dunkin’ Donuts K-Cup portion packs in pumpkin, peppermint mocha and hot cocoa flavors.
Baskin-Robbins U.S. operating profit was $3,888,000, up 35% from $2,877,000 in the same period a year ago. Total revenues were $7,815,000, down from $8,759,000.
Dunkin’ Donuts International posted operating profit of $2,174,000, down 20% from $2,701,000 in the same period a year ago. Total revenues were $3,996,000, up 3% from $3,884,000.
Baskin-Robbins International fourth-quarter 2012 segment profit was $6,833,000 on total revenues of $17,971,000. This compared with profit of $10,302,000 and revenues of $28,022,000 in the same period a year ago.
Separately, the board of directors of Dunkin’ Brands announced it has raised the quarterly dividend 27% to 19c per share from 15c per share. The dividend is payable on Feb. 20 to shareholders of record as of Feb. 11.
“We believe that our ability to increase our dividend in our second year as a public company reflects the confidence we have in our business, the sustainability of our cash flow and our commitment to enhance shareholder value,” said Paul Carbone, chief financial officer of Dunkin’ Brands Group, Inc.