Dunkin’ Brands Shares Drop on Weak Growth, Soft Revenue

Dunkin' Brands shares dropped by as much as 4% in early trading on Thursday following the company's announcement of weaker-than-predicted sales growth and headwinds in international markets. But the stock regained ground and recovered its losses and closed at a modestly lower level.

Same-store sales at overseas locations of the company's Baskin-Robbins and Dunkin' Donut brands in the second quarter was down 6.6% and 3.1% respectively. The results are significantly lower than analysts' forecasts.

Sales in the U.S. stores also did not meet Wall Street approximations. Dunkin' announced same-store sales rise of 0.5%, lower than the expected 0.9% growth. Baskin-Robbins rose by 0.6% but was anticipated to rise 3.4% by Wall Street.

But Dunkin' Brands income topped Wall Street predictions, reporting profit of 57 cents per share compared to an estimate of 56 cents per share, with its revenue at $216.3 million. Analysts predicted an average revenue of $220.2 million.

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