Dunkin' Brands' stock drops after earnings beat and dividend raised, but sales miss
Shares of Dunkin' Brands Group Inc. dropped 2.2% in premarket trade Thursday, after the coffee seller reported a fourth-quarter profit that beat expectations and raised its dividend, but missed on revenue and same-store sales. Net income fell to $53.2 million, or 64 cents a share, from $134.7 million, or $1.47 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 68 cents, above the FactSet consensus of 61 cents. Revenue rose 1.5% to $319.6 million, but was below the FactSet consensus of $330.0 million. Dunkin' U.S. same-store sales were flat, as an increase in average ticket was offset by a decrease in traffic, compared with the FactSet consensus of 1.6% growth. Baskin-Robbins U.S. same-store sales declined 3.7% versus expectations of a 0.2% decline. Separately, Dunkin' raised its quarterly dividend to 37.50 cents a share from 34.75 cents, with the new dividend payable March 20 to shareholders of record on March 11. The stock has declined 6.6% over the past three months, while the S&P 500 has lost 2.9%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.