Dunkin' Brands, Inc. Announces Robust 2010 Development Growth
Company also announces certain preliminary 2010 financial information and proposed re-pricing of outstanding term loan debt
CANTON, Mass., Feb. 3, 2011 // PRNewswire // -- Dunkin' Brands, Inc., the parent company of two of the world's most recognized brands, Dunkin' Donuts and Baskin-Robbins, today announced that in fiscal 2010 it opened 800 global net new Dunkin' Donuts and Baskin-Robbins locations, bringing its total points of distribution to 16,193 in 52 countries.
The Company's 2010 growth includes 574 net new locations for Dunkin' Donuts, which continues to be at the forefront of the QSR industry as one of the world's fastest growing brands. During the year, Dunkin' Donuts U.S. also signed an additional 226 new domestic development agreements, representing a 50 percent increase in agreements over 2009.
"Last year was a tremendous growth year for Dunkin' Brands and for Dunkin' Donuts in particular, which opened 206 net new restaurants in the U.S. alone," said Nigel Travis, Chief Executive Officer, Dunkin' Brands, Inc. and President, Dunkin' Donuts. "We have an incredible community of franchisees who provide guests with a great experience on a daily basis and who are important contributors to our brand's growth. In 2010, the majority of new Dunkin' Donuts U.S. restaurants and a significant number of new development agreements came from existing franchisees, which we believe shows tremendous confidence in the brand."
In 2010, Dunkin' Donuts signed multi-store development agreements in 29 U.S. markets, including Milwaukee, Detroit, Tallahassee, Nashville and Chicago, among others. New restaurants opened in Raleigh, Tampa, Baltimore and other cities around the country. Additionally, in 2010 over 450 Dunkin' Donuts restaurants were remodeled to reflect the brand's new design image.
Dunkin' Brands today also announced certain preliminary financial results for fiscal 2010, which ended on Dec. 25, 2010. The Company expects to report global system-wide sales for fiscal 2010 of approximately $7.7 billion compared to $7.2 billion for fiscal 2009. This represents approximately a seven percent year-over-year increase. The Company also expects to report total revenues for fiscal 2010 in the range of approximately $575 million to $580 million compared to $538 million for fiscal 2009, an increase of approximately seven percent.
Increases in both global system-wide sales and Dunkin' Brands revenues for fiscal 2010 are primarily attributable to growth in royalty payments, driven by Dunkin' Donuts U.S. comparable same-store sales growth (which includes stores open for 54 weeks or more), Baskin-Robbins international sales and global store development.
Same-store sales growth for Dunkin' Donuts U.S., which represents more than 70 percent of Dunkin Brand's system-wide sales, increased 2.3 percent for fiscal 2010 compared to fiscal 2009 and 4.7 percent for the fourth quarter of 2010 compared to the same period in 2009. This increase is attributable to the continued growth in Dunkin' Donuts U.S. beverage sales as well as new product introductions.
Additionally, Dunkin' Brands said today that it is proposing to re-price its outstanding $1.25 billion term loan. The consummation of the re-pricing is subject to market and other customary conditions.
"As a result of a disciplined, operations-focused approach to supporting our franchised business, strong marketing, innovative new product introductions and industry-leading net new store development, I am pleased to report that 2010 was a strong year for Dunkin' Brands," concluded Travis. "The proposed re-pricing of our outstanding term loan debt will enable us to take advantage of a favorable lending market and achieve significant interest savings while maintaining our current capital structure. This should contribute further to our profitability. We believe our strong momentum going into 2011, enhanced by the debt re-pricing, and coupled with our powerful brands, attractive franchise model, and strong cash flow, positions us well for the future."
The financial information included above for the fiscal year ended Dec. 25, 2010, is unaudited, subject to completion, reflects our current best estimates and may be revised as a result of management's further review of our results. During the course of the preparation of our consolidated annual financial statements and related notes for the fiscal year ended Dec. 25, 2010, we may identify items that require us to make material adjustments to the preliminary financial information presented above.
About Dunkin' Brands, Inc.
With 16,193 points of distribution in 52 countries worldwide, Dunkin' Brands, Inc. is renowned for its leadership in the quick quality category. At the end of 2010, Dunkin' Brands' nearly 100 percent franchised business model included 9,760 Dunkin' Donuts restaurants and 6,433 Baskin-Robbins restaurants, and the Company had system-wide sales of approximately $7.7 billion. Dunkin' Brands, Inc. is headquartered in Canton, Mass. For more information, visit www.dunkinbrands.com.
Certain statements in this press release are forward-looking statements. These statements involve a number of risks, uncertainties, and other factors including the failure to achieve financial results within the estimated ranges set forth above and the failure to consummate the proposed term loan re-pricing as well as potential changes in market conditions that could cause actual results to differ materially.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.
SOURCE Dunkin' Brands, Inc.