The operator of Dunkin' Donuts and Baskin-Robbins stores said Thursday that its net income jumped 36 percent, as revenue from established U.S. locations got a lift from strong beverage and breakfast sandwich growth.
But earnings fell short of expectations, and the company also said it will probably hit the low end of its 2013 forecast due to write-downs on investments in Spain. Its shares fell more than 2 percent in morning trading.
Dunkin' Brands Group Inc. said it earned $40.2 million, or 37 cents per share, in the three months that ended Sept. 30, up from $29.5 million, or 26 cents per share, in last year's quarter.
Adjusted earnings totaled 41 cents per share in the third quarter. Analysts surveyed by FactSet expected earnings of 43 cents per share, on average.
Revenue rose more than 8 percent, to $186.3 million, from $171.7 million a year ago. Analysts expected $183.6 million in revenue.
Growing royalty income helped boost company revenue, the company said.
Revenue from established U.S. locations climbed 4.2 percent for Dunkin' Donuts stores and 3.2 percent for Baskin Robbins. But revenue from established, international Dunkin’ Donuts locations fell 1.4 percent, while sales from Baskin Robbins international stores grew slightly.
For the year, the company expects to hit the low end of its target for 2013 adjusted earnings of $1.50 per share to $1.53 per share. It cited $3.7 million in write-downs tied to investments in a joint venture in Spain.
Analysts expect, on average, earnings of $1.53 per share.
The Canton, Mass., company's shares fell .60 percent, or $.29, to $47. The company's stock had climbed more than 44 percent so far this year.