What Analysts Expect from Dunkin’ Brands’ 2Q17 Revenue



Revenue sources

Dunkin’ Brands (DNKN) earns its revenue from franchise fees and royalties collected from franchisees, rental income, sales of ice cream and other products, and other revenue. 

In 1Q17, the company’s franchise fees and royalties formed 68.2% of its total revenue.

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2Q17 estimates

In 2Q17, analysts expect Dunkin’ Brands to generate revenue of $220.9 million, a rise of 2.1% from $216.3 million in 2Q16. This revenue growth is expected to be driven by the addition of new points of distribution and positive same-store sales growth (or SSSG) from both its brands.

Compared to 2Q16, the company operated 346 more franchised Dunkin’ Donuts distribution points and 94 more Baskin-Robbins distribution points by the end of 1Q17. For both brands, the company’s management has set its 2017 SSSG guidance in the low single digits.

Dunkin’ Donuts’ SSSG is expected to be driven by menu innovations, the remodeling of its distribution points, growth in digital sales, and a rise in the number of DD Perks members. The company introduced Fruited Iced Teas, Dunkin’ Energy Punch, and new frozen coffee in 2Q17. In association with Waze, Dunkin’ Brands has also launched a navigation app that allows DD Perks rewards members to order ahead, reducing the waiting period for its customers.

Baskin-Robbins’ SSSG is expected to be driven by the implementation of technological advancements, improved customer experience, and increased convenience. The company has expanded its delivery service in Saudi Arabia, which spans 30 delivery hubs.

In 1Q17, Dunkin’ Brands launched a ready-to-drink, bottled version of its iced coffee, which is manufactured and distributed The Coca-Cola Company (KO), according to Dunkin’ Donuts. The sales of this product are expected to drive the company’s revenue.

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Peer comparison

In 2Q17, analysts expect Starbucks (SBUX) to post revenue growth of 9.9%, while McDonald’s (MCD) and Wendy’s (WEN) are expected to see revenue falls of 4.9% and 21.0%, respectively.


For the next four quarters, analysts expect revenue of $850.9 million for the company, which represents a rise of 2.5% from its revenue of $829.8 million in the corresponding quarters of the previous year.

Next, let’s look at Dunkin’ Brands’ estimated earnings margins.


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