Thursday October 25, 2018, 00:00:00
DNKN (Post-Call) The Breakfast Battle Heats Up
Earlier today, Dunkin’ Brands Group (DNKN; Neutral) reported adjusted Q3 EPS of $0.83, well ahead of our $0.72 forecast and sell-side consensus of $0.73, as measured by Consensus Metrix. The company quantifies the Q3 recognized excess tax benefits as helping adjusted Q3 EPS by $0.09. This means that excluding this taxrate help, Q3 EPS beat our estimate by $0.02 and consensus by $0.01. We attribute the outperformance to higher-than-expected Franchise Fees and Royalty Income, helped in part by better-than-expected same-store sales by the Baskin-Robbins U.S., Dunkin’ International, and Baskin-Robbins International business segments.