Baskin-Robbins sales drop weighs on Dunkin’ Brands’ third-quarter profit
(Reuters) – Dunkin’ Brands Group Inc <DNKN.O>, the owner of the Dunkin’ Donuts chain, reported a surprise fall in comparable sales at its Baskin-Robbins restaurants, weighing on the company’s overall profit in the third quarter.
Dunkin’ Brands said on Thursday sales at Baskin-Robbins locations open for at least a year fell 0.4 percent in the third quarter ended Sept. 30. Analysts on average had expected an increase of 0.3 percent, according to research firm Consensus Metrix.
Comparable sales at Dunkin’ Donuts restaurants – which make up 70 percent of Dunkin’ Brands’ overall sales – also missed analysts’ estimates, but by a much smaller margin.
Canton, Massachusetts-based Dunkin’ Brands is facing brutal competition from McDonald’s Corp <MCD.N> and Burger King, which have been expanding their coffee and breakfast menus and offering much-cheaper items.
The company’s net income fell slightly to $52.2 million(£39.48 million) in the third quarter from $52.7 million a year earlier. On a per-share basis, profit was unchanged 57 cents.
Excluding one-time items, Dunkin’ earned 61 cents per share.
Total sales climbed 8 percent to $224.2 million.
(Reporting by Vibhuti Sharma in Bengaluru; Editing by Sai Sachin Ravikumar)