Milling & Baking News Corporate Profiles - November 2013 - (Page 90)

Company Overview Dunkin' Brands Group, Inc. Innovation, international growth keystones of company's success D ifferentiation and innovation are key growth drivers for Dunkin' Brands Group, Inc. From June's headline-making launch of Dunkin' Donuts' Glazed Donut Breakfast Sandwich to a gluten-free platform planned for year-end, the Canton, Mass.-based company's product pipeline brims beyond Baskin-Robbins' signature "31 Flavors." The year's introductions span beverages, better-for-you offerings, breakfast and lunch, as the company aims to reach a variety of consumers, day parts and geographies. On National Donut Day in June, Dunkin' Donuts rolled out a breakfast sandwich featuring a fried egg and smoked bacon inside a split glazed donut as part of its permanent menu in U.S. restaurants. Nigel Travis, chief executive officer of Dunkin' Brands and president of Dunkin' Donuts, said the glazed donut breakfast sandwich launch exemplifies the chain's broader strategy within its food program: to differentiate in everything the company does and deliver on a high-margin opportunity. "... we have this differentiated product menu, which nobody else has," Mr. Travis said. "I will stack up our breakfast sand- wiches against any competitor, against McDonald's. It is something that we are focused on in the sense of to make sure we have the right real estate, to make sure we have the right product innovation, and then most importantly to make sure that the cash and cash returns stay in that north of 25%." For the six months ended June 29, Dunkin' Brands had total revenues of $344.3 million, up from $324.8 million in the same time period of the previous year, and net income of $64.6 million, up from $44.4 million. International expansion also has been a focus for Dunkin' Brands, which this year ventured into Turkey and Vietnam and added 50 London locations. But global growth hasn't always proved successful for the company, which ended its franchise agreement in Taiwan, closing 19 shops during the first quarter. "It is not about the number of countries we are in; it is about being in the right countries with the right franchise partners and offering our customers the best global experience," Mr. Travis said. On the health and wellness front, both Dunkin' Donuts and Baskin-Robbins have made strides in developing better-for-you Chief executive officer - items, revising portion sizes and establishing nutritional guidelines for its products, as well as test-marketing a glutenfree muffin and gluten-free donut that will be offered as part of an optional program nationwide by the end of 2013. Also this year, the company unveiled a new look for its Dunkin' Donuts U.S. stores aimed at reflecting the chain's gradual shift "from a morning destination into a brand that serves people all day long." In fiscal 2013, Dunkin' Brands had goals of Dunkin' Donuts U.S. comparable store sales growth in the range of 3% to 4% and Baskin-Robbins U.S. comparable store sales growth in the range of 1% to 3%. The company in the fiscal year expects to add between 330 and 360 net new restaurants for Dunkin' Donuts U.S. and between 700 and 860 net new units internationally for Dunkin' Brands. At the end of the second quarter of fiscal 2013, Dunkin' Brands franchised business model included more than 10,600 Dunkin' Donuts restaurants and more than 7,000 Baskin-Robbins restaurants. Also in fiscal 2013, Dunkin' Brands estimates revenue growth of between 6% and 8% and adjusted earnings per share of $1.48 to $1.51. CP Top brands - Dunkin' Donuts Baskin-Robbins 2012 fiscal year revenues - Nigel Travis 90 \ November 2013 $658.2 million Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013