Dunkin Brands (DKNK) Q2 2020 earnings

Dunkin’ Brands second-quarter revenue fell 20{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} as fewer customers stopped by its stores due to the coronavirus pandemic on their way to work. However, customers, often stopping in with their families, are spending more per visit when they do arrive.

Dunkin’ shares were down less than 1{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} in premarket trading. 

“For Dunkin’ U.S., same-store sales improved sequentially throughout the quarter, largely as a result of our ability to pivot quickly and introduce new menu items designed to appeal to customers who are now visiting us later in the day,” said CEO Dave Hoffmann, in a press release.

For the second quarter ended June 27, Dunkin’ said net income fell to $36.5 million, or 44 cents per share, from $59.6 million, or 71 cents per share, a year ago.

Excluding non-recurring items, the company earned 49 cents per share, below Refinitiv estimates of 48 cents per share.

Revenue fell to $287.4 million from $359.3 million last year, but outpaced estimates of $277 million.

U.S. Dunkin’ same-store sales dropped 18.7{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}, while Baskin-Robbins U.S. same-store sales fell 6.0{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}.

The company said it anticipates net closures of 229 Dunkin’ and Baskin-Robbins locations worldwide. This includes plans to shut 180 of its ice cream shops in international markets, and shut 40 Dunkin’ stores in the U.S. Ten of the Dunkin’ sites are within Speedway locations. 

Dunkin also reinstated its dividend. 

Dunkin’ shares have lost 5.1{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} year to date through Wednesday.