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

April 10th, 2019 by Trefis Team
-1.84%
Downside
106
Market
105
Trefis
DNKN: Dunkin' Brands Group logo
DNKN
Dunkin' Brands Group

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.

Relevant Articles
  1. Is Dunkin’ Brands’ Stock Overvalued?
  2. 20% Upside For BJ’s Restaurants’ Stock When Pandemic Subsides?
  3. Can Dunkin’ Brands Survive A Covid Recession?
  4. Donuts Over Burgers: Why Dunkin’ Brands Stock Looks More Attractive Than McDonald’s
  5. Dunkin’ Brands Stock Looks Undervalued At $58
  6. Dunkin’ Brands To Meet Consensus Estimates For FY 2019?

 

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.

 

 

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs

For CFOs and Finance Teams | Product, R&D, and Marketing Teams

More Trefis Data

Like our charts? Explore example interactive dashboards and create your own.