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$DNKN has promoted Scott Murphy to COO, Dunkin' Donuts US and appointed Rick Colón to the newly-created position of SVP, Operations & Development for Dunkin' Donuts US. Mr. Colón will report to Scott Murphy, who will continue to report to David Hoffmann, President, Dunkin' Donuts US.
$DNKN has announced that Katy Latimer is its new VP, Culinary Innovation. She will head Dunkin' Brands' culinary team, and plan and manage the strategic development of new and enhanced menu choices. She will report to Tony Weisman, Chief Marketing Officer of Dunkin' Donuts.
$DNKN announced the appointment of Tony Weisman to the position of US Chief Marketing Officer. Weisman, formerly the North American CEO of DigitasLBi, will officially join the company in late September. He will report directly to David Hoffmann, President, Dunkin' Donuts US.
$DNKN said some of its subsidiaries intend to issue approx. $1.45Bil of new securitized notes and to use the proceeds to prepay and retire the outstanding 2015 A-2-I Notes, to pay transaction fees and for general corporate purposes. The offering is anticipated to close in 4Q17.
$DNKN has signed a multi-unit store development agreement with franchisee Sandwich Group, Inc., to develop nine Dunkin' Donuts restaurants in St. Louis, Missouri, including one multi-brand location with Baskin-Robbins. The group's first restaurant is planned to open in 2018.
$DNKN promoted interim CFO Kate Jaspon to the position of CFO, effective June 5, 2017. She will serve on the company's Executive Leadership Team and will report directly to $DNKN's CEO Nigel Travis. In April, Jaspon was appointed interim CFO and replaces Paul Carbone, who left the company to take a new position as COO at a specialty retail chain.
$DNKN appointed Linda Boff to its BoD. Boff is the Chief Marketing Officer for $GE and is responsible for leading that company's global marketing strategies. Boff is on the Board of Partnership with Children. She is also Vice Chair of the Ad Council and on the Executive Committee of the Association of National Advertisers (ANA).
$DNKN announced the signing of a multi-unit store development agreement with new franchise group SWLA Delights, LLC, to develop four Dunkin' Donuts restaurants in Lake Charles, Louisiana, including one multi-brand location with Baskin-Robbins. The group's first restaurant is planned to open in 2018.
For FY17, $DNKN still sees low-to-mid single digit revenue growth on both a 52- and 53-week basis. $DNKN lifted EPS guidance to $2.22-2.30 from $2.16-2.24 and its adjusted EPS estimate to $2.40-2.43 from $2.34-2.37. $DNKN still sees mid-to-high single digit operating income growth and adjusted operating income growth.
For FY17, $DNKN still expects low single digit comparable store sales growth for Dunkin' Donuts U.S. and Baskin-Robbins U.S. The company still sees Dunkin' Donuts U.S. franchisees to add about 385 net new restaurants. It continues to expect Baskin-Robbins U.S. franchisees to add about 10 net new restaurants.
$DNKN's Baskin-Robbins U.S. comparable store sales were negative during 1Q17 on a decline in traffic offset by higher average ticket. Sales of cups and cones rose due to higher sales of scoops and the Warm Cookie Sandwich platform. Sales of take-home pints also grew, while sales of beverages, soft serve, and sundaes declined.
$DNKN's Dunkin' Donuts U.S. comparable store sales for 1Q17 were flat as a rise in average ticket was offset by a decline in traffic. Breakfast sandwich sales rose driven by value messaging around wake-up wraps and core sandwiches such as egg and cheese. Beverage sales were driven by the iced coffee category as Cold Brew sales continue to grow.
$DNKN reported a jump in 1Q17 earnings driven by lower costs and expenses as well as a decline in income taxes provision. Net income grew to $47.47MM or $0.51 per share from $37.15MM or $0.40 per share last year. Revenue rose to $190.67MM from $189.78MM. Adjusted EPS increased to $0.54 from $0.44.
$DNKN announced that Paul Carbone, CFO, is leaving the company effective April 21, 2017. Kate Jaspon, $DNKN's VP, Finance and Treasurer, has been appointed to serve as interim CFO upon his departure. Additionally, the company is undertaking a comprehensive search for a permanent CFO and will consider both internal and external candidates.
$DNKN promoted Grant Benson to SVP, Franchising and Development, Dunkin' Brands and Amanda Helming to VP, Dunkin' Donuts U.S. Brand Marketing and Pricing. Santhosh Kumar has been promoted to VP, Enterprise Infrastructure, Data Security and Privacy, Dunkin' Brands.
$DNKN announced that its BoD has declared a quarterly cash dividend of $0.3225 per common share, payable on March 22, 2017 to shareholders of record as of March 13, 2017. This represents a 7.5% increase over the prior quarter's dividend.