Shares of Dunkin' Donuts (NASDAQ: DNKN) fell on Tuesday despite the company posting fourth-quarter earnings that were better than analyst expectations.
The company reported adjusted earnings of 64 cents per share on $227.1 million in revenue. Wall Street had forecast that Dunkin' would report earnings of 63 cents per share on $220.6 million in revenue, according to Thomson Reuters estimates.
Adjusted Earnings Per Share registered 64 cents ex. items vs. 63 cents expected according. Revenue was $227.1 million compared to $220.6 million projected
U.S. same-store sales for Dunkin' restaurants improved 0.8% vs 0.9% growth projected.
Same-store sales for the quarter were up 0.8% for U.S. Dunkin' Donuts chains, just shy of analysts' expectations of 0.9% growth. Dunkin' said sales growth was fueled by breakfast sandwich, iced coffee and Frozen Dunkin' Coffee and doughnut sales.
Baskin-Robbins chains saw same-store sales rise 5.1% a greater leap than Wall Street's expected 0.2% The company said this growth was bolstered by higher checks and beverages like shakes and smoothies.
For the full year, same-store sales were up 0.6% at U.S. Dunkin' Donuts locations and flat at U.S. Baskin-Robbins stores.
The company has been making major changes in the last few months, ramping up its digital ordering, slowing down its expansion plans and slimming down its menu to refocus its efforts on being a beverage-led brand.
And that seems to be paying off.
The company declined to provide 2018 estimates during the earnings conference call Tuesday. Dunkin' will disclose this information at its Investor Day on Thursday.
Shares in Dunkin gave back 95 cents, or 1.6%, to $59.95