Dunkin’ brewing up aggressive growth

Dunkin’ Donuts isn’t letting lackluster sales in its most recent quarter stand in the way of store expansion.



The coffee chain, a division of Dunkin’ Brands Group Inc., on Thursday said it is on track to add between 410 and 440 net new U.S. stores this year. The expansion represents greater than 5% net new locations.



Globally, the company -- which also owns Baskin-Robbins -- expects to open between 615 and 750 net new restaurants across the two brands.



Dunkin’ Brands on Thursday also reported results for the third quarter that came in above expectations. The company posted a profit of $46.2 million, down from $54.7 million a year earlier.



Revenue rose 8.9% to $209.8 million, above analysts’ expectations, up from $192.6 million in the year-ago period. Same-store sales grew 1.1% at Dunkin' Donuts U.S. locations, less than expected, with a 0.7% decline in store traffic.



“Our overall financial performance in the third quarter, including the strong growth in our revenue, operating income and adjusted earnings per share, demonstrates the benefits and resiliency of our asset-light franchise business model, and the solid Dunkin' Donuts U.S. net restaurant growth shows the continued demand for the brand,” said Nigel Travis, chairman and CEO, Dunkin’ Brands Group. “While we were disappointed with our third quarter Dunkin' Donuts U.S. comparable store sales, we remain on track to deliver our full-year targets, and we are working closely with our franchisees to regain transaction momentum through great products, exceptional guest service, and innovative marketing.”



During the quarter, the company opened 90 net new restaurants worldwide.