How Has Dunkin’ Brands Revenue Performed And What Is Its Potential?

by Trefis Team
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Dunkin' Brands
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Dunkin’ Brands (NASDAQ:DNKN) reported revenue of $1.32 billion and EBITDA was $452.9 million in 2018. The revenue consists of five key components:

  1. Dunkin’ Donuts US
  2. Dunkin’ Donuts International
  3. Baskin-Robbins US
  4. Baskin-Robbins International
  5. Advertising fees and related income

 

As we detail below, we expect Dunkin’ Brands to grow by 3.8% in revenues and reach $1.37 billion in 2019. The EBITDA in the same period is expected to increase by more than 7% and reach approximately $487.8 million. We have created an interactive dashboard, What is Dunkin’ Brands’ performance and potential in terms of Revenue and EBITDA?   In addition, here is more Consumer Discretionary data.

 

Total Revenue:

  • Dunkin’ Brands has seen a steady growth in revenues and has increased from $1.25 billion in 2016 to $1.32 billion in 2018.
  • We expect the the revenues to grow in 2018 by around 3.8% and reach $1.37 billion on led by increase in Dunkin’ Donuts US revenues.

 

Dunkin’ Donuts US:

  • The decrease seen in 2018 is due to the change in the presentation of financial statements as the company started to recognize advertising fees and related income.
  • Overall, we expect the segment to continue growing in 2019 and reach $643.9 million, led by the continuous increase in the number of outlets in the geography.

 

Dunkin’ Donuts International:

  • The segment saw a small drop in revenues in 2017 but recovered in 2018 to grow by 8.6% and post $22.34 million in revenues.
  • In 2019 we expect the segment to post revenues of about $23.3 million and the growth is expected to be led by the increasing number of stores in the geographies.

 

Baskin-Robbins US:

  • Baskin-Robbins US segment has been nearly flat the past 3 years with the revenue seeing a slight fall from $47.5 million in 2016 to $47.4 million in 2018.
  • In 2019 we expect the segment to have revenues of $48.1 million, up by 1.5%, driven by the small increase in revenue per outlet.

 

Baskin-Robbins International: 

  • The Baskin-Robbins International segment has seen a small fall from $119 million in 2016 to $115 million in 2018. This was primarily driven by the decrease in franchise fees and royalty charged by the company.
  • In 2019 we expect the segment to be on the recovery track with revenues reaching $118.7 million. The growth is expected to be driven by both an increase in revenue per outlet and total number of outlets.

 

Advertising Fees and related Income:

  • The company started recognizing this separately in 2018. These are advertising fees paid on a weekly basis based on a percentage of franchisee gross sales as per the franchise agreements both in US and internationally.
  • In 2019 we expect the revenue from this segment to continue its growth and reach around $498.5 million.

 

 

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