Dunkin’ Brands has reported international like-for-lie sales up 2.5% for its fourth quarter ending 27 December driven by sales growth in Europe and the Middle East.
In America the company’s like-for-like sales were up 1.4% for the quarter and 1.6% across FY14.
During the year 704 new restaurants were added worldwide, including 141 new stores in the US. Global revenue was up 4.9% for the year.
Nigel Travis, Chairman and chief executive of Dunkin’ Brands Group, said: “Highlights from our performance in 2014 included: strong domestic restaurant level unit economics; robust U.S. restaurant development for both brands, including the opening of our first traditional Dunkin’ Donuts restaurants in California; growing transactions in the Dunkin’ Donuts U.S. business in the face of macroeconomic and competitive headwinds; the launch of both the DD Perks loyalty program, which now has more than 2.5 million members, and Baskin-Robbins online cake ordering; and progress with the retooling of our international businesses as demonstrated by the signing of significant international development agreements in Sweden, Austria, and China.
“Our nearly 100-percent franchised business model delivered another year of double-digit adjusted earnings per share growth, and most notably, more than 50 percent free cash flow growth. While our earnings growth expectations for 2015 are below our longer-term targets, we are committed to returning to double-digit growth in subsequent years.”
Dunkin’ Donuts international fourth quarter revenues of $6.7 million represented an increase of 19.7% year-over-year. The company said the increase in revenue was primarily a result of an increase in franchise fees due to openings in existing and new international markets and additional franchise renewals, offset by income recognized in connection with the termination of development agreements in Asia in the prior year period. Also contributing to the increase in revenues was an increase in royalty income.
