What To Expect From Dunkin’ Brands Q4 2017 Results


Dunkin’ Brands  ( DNKN ) will announce its Q4 2017 and FY 2017 results on February 6 th 2018. The company has faced a challenging year with comparable sales growth remaining below 1% in the first three quarters of the year as guest traffic declines. We will be keenly watching for the comparable sales growth number for Q4 2017 and the guidance for 2018 as the company takes several measures to drive traffic.

The charts below summarize consensus analyst expectations for revenues and EPS (earnings per share) for Q4 2017.

 You can access these charts here and modify the expectations to create your own scenario.

Key Trends:

Positive Industry Environment: The overall restaurant industry environment has been positive for the quarter ended December 2017. While comparable traffic declined, comparable sales have been positive on the back of higher average checks. Fine dining and upscale casual restaurants are more likely to benefit from this trend,  however the overall positive environment can favorably impact Dunkin’ Brands.

Menu Simplification To Drive Growth : Dunkin’ Brands is simplifying its menu to ensure that employee training is easier which can lead to faster expansion and better customer satisfaction. The company recently announced that it is removing artificial dyes from all the donuts sold in the U.S. to make it easier for consumers to select products. (Read Dunkin’ Brands Next Move Towards Menu Simplification: No Artificial Dyes). This effort is likely to drive growth for the company in the long term.

Aggressive Expansion : Dunkin’ Brands has an aggressive goal to double the number of Dunkin’ Donuts restaurants to 18,000 eventually. This move can significantly impact the company’s valuation and we will be keenly watching the company’s expansion plan in the Q4 2017 earnings call. (Read How Dunkin’ Brands Move To Double Its U.S. Store Count For Dunkin’ Donuts Could Drive Value).

Next Generation Stores : Dunkin’ Brands is working on redesigning its stores to make them more efficient for mobile orders. The first such “concept store” was unveiled recently and as the company adapts to the digitization of the restaurant industry, this move is more of a necessity to drive growth. (Read Can Dunkin’ Brands Develop A Competitive Edge With Its “Next Generation Stores”?)

We will be closely watching the impact of Dunkin’s menu simplification and expansion plans in its Q4 2017 earnings, along with growth in comparable sales.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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