Baskin-Robbins: US division
Warmer-than-average weather in the US increased traffic for Baskin-Robbins’ US division, which helped the division to record same-store sales growth of 4.4%. The increase in traffic was responsible for more than a 50% increase in same-store sales growth. All of Baskin-Robbins’ five main categories recorded growth in 4Q15. These five categories are cups and cones, beverages, sundaes, desserts, and take-home.
Baskin-Robbins: international division
The international division recorded a -2.7% same-store sales growth, as the two major international markets of Japan and Korea saw a decline in their same-store sales. Japan’s underperformance was significant, as the company declared the investment in Japan joint venture as impaired.
You can also get exposure to Dunkin’ Brands (DNKN) by investing in the iShares S&P Mid-Cap 400 Growth ETF (IJK), which invests 0.58% of its portfolio in DNKN. IJK also invests 0.87% of its portfolio in Domino’s Pizza (DPZ), 0.66% in Panera Bread (PNRA), and 0.39% in Buffalo Wild Wings (BWLD).
Outlook for 2016
The company has set the US same-store sales growth guidance for fiscal 2016 to be between 1% and 3%. However, analysts have estimated the same-store sales growth of Baskin-Robbins US to be at 2.6%. Having discussed same-store sales growth, we will now discuss another revenue driver, unit growth, in our next article.