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From ChainStoreAge.com
Dunkin’ Brands Group had a slam-dunk first quarter, with first quarter profit growth of 11.7%, a revenue increase of 8.1%, and U.S. same-store sales growth of 8% in its Baskin-Robbins unit. The Dunkin’ Donuts segment saw same-store sales climb a more modest 2.7%.
The chain added 79 net new restaurants worldwide during the quarter, which included 78 Dunkin Donuts in the U.S.
"This was a really strong quarter and we are delighted with the performance of our product and marketing programs given the severe weather that we experienced in many of the markets where our restaurants are located,” said Dunkin' Brands chairman and CEO Nigel Travis.
Dunkin' Donuts U.S. first quarter revenues of $133.9 million represented an increase of 6.9% over the prior-year period. Profit for the unit rose $3.6 million to $93.4 million, driven primarily by revenue growth.
On the international front, systemwide sales dipped 0.3%, hurt by declines in South Korea, Europe and South America. Segment profit for Dunkin' Donuts International increased $1.4 million to $4.3 million.
The company also announced that its global marketing leader John Costello will retire in mid-2016. In the interim, the president of global marketing & innovation will transition as of May 1 to a new role focused on the evolution of the company's brands with an emphasis on Dunkin' Brands' international businesses.
Costello will not be replaced, but two internal promotions will fill the gap. Scott Hudler, VP of Global Consumer Engagement, will begin reporting directly to Nigel Travis and will continue to lead Dunkin' Donuts U.S. advertising, media strategy and in-store merchandising support. He will also continue to be responsible for Dunkin' Donuts US, Dunkin' Donuts International and Baskin-Robbins International advertising and digital media strategies, as well as the company's loyalty programs. Chris Fuqua is being named VP, Dunkin' Donuts Brand Marketing & Global Consumer Insights & Product Innovation. In addition to overseeing Dunkin' Donuts U.S. marketing programs, he will now assume responsibility for Dunkin' Donuts U.S. field marketing, and product innovation and consumer insights for Dunkin' Donuts and Baskin-Robbins on a global basis.
Looking ahead to the rest of 2015, the company said it is on target to add 410 to 440 net new U.S. Dunkin’ Donuts and between five and 10 net new Baskin-Robbins U.S. units. Internationally, 200 to 300 net new restaurants across the two brands are expected to open.
