Canton, Mass. – Dunkin’ Brands Group, the parent company of Dunkin’ Donuts and Baskin Robbins, reported that its third quarter net income grew 36% to $40.2 million.
Revenue increased 8.5%, from $171.7 million, to $186.3 million.
Part of the reason Dunkin’ Brands enjoyed such as successful quarter was the addition of 22 net new restaurants worldwide by Dunkin' Brands franchisees and licensees. This includes 81 net new Dunkin' Donuts U.S. locations, 73 net new Baskin-Robbins International locations, 67 net new Dunkin' Donuts International locations, and one net new Baskin-Robbins U.S. location. In addition, Dunkin' Donuts U.S. franchisees remodeled 98 restaurants during the quarter.
Dunkin’ Brands also cited a systemwide sales increase of 5.8%, driven by same-store sales growth of 4.2% at U.S Dunkin’ Donuts stores and 3.2% at U.S, Baskin-Robbins stores, as helping to drive revenues, as well as increased franchise fees due to favorable development mix and incremental franchise renewals, and increased sales of ice cream products. Net income was boosted by operating income growth.
"With 222 net new openings year-to-date, we now have 7,500 Dunkin' Donuts restaurants in the U.S and the demand by existing and prospective franchisees to grow with us has never been stronger said Nigel Travis, chairman and CEO, Dunkin' Brands Group, Inc.
Travis said the company believes it can have 15,000 Dunkin' Donuts restaurants in the U.S., including approximately an additional 3,000 east of the Mississippi and 5,000 in the western part of the country.
“Notably this quarter, we opened our first restaurants in Denver, Colorado, and sold additional store development agreements in Southern California bringing the total to 70 restaurants planned for the Southern California region,” he said. “Additionally, just last week we announced that we have begun to sell store development agreements for the central part of the state, including the Fresno, Bakersfield, Sacramento, and Santa Barbara areas."