Dunkin’ Brands (NASDAQ:DNKN) second-quarter revenue fell 20% 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.
For the 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 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%, while Baskin-Robbins U.S. same-store sales fell 6.0%.
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. On that issue, Chief Financial Officer Kate Jaspon said, "The reinstatement of our dividend reflects the overall financial health of Dunkin' Brands and our commitment to shareholders,"
"Given the strength and stability of our franchised model, coupled with our franchisees' ongoing business recovery, we remain confident in our ability to maintain appropriate liquidity through the current crisis."
Dunkin’ shares have lost 5.1% year to date through Wednesday. They opened Thursday lower by $2.60, or 3.6%, to $69.08.
