Dunkin' Brands Group, Inc. (NASDAQ:DNKN) Q4 2014 Earnings Conference Call - Final Transcript

Feb 05, 2015 • 08:00 am ET


Dunkin' Brands Group, Inc. (NASDAQ:DNKN) Q4 2014 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Dunkin' Brands Fourth Quarter 2014 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. I will now turn the call over to your host, Stacey Caravella. Please go ahead.

Stacey Caravella

Thank you, operator, and good morning, everyone. With me today are Dunkin' Brands' Chairman and Chief Executive Officer, Nigel Travis; and Dunkin' Brands' Chief Financial Officer, Paul Carbone. Additionally, Dunkin' Brands' President, Global Marketing and Innovation, John Costello, is here and he'll be available for questions during the Q&A session at the end of the call. We also have Scott Hudler, Vice President of Global Consumer Engagement, who will speak later during the call about our digital marketing initiative. Today's call is being webcast live and recorded for replay.

(Forward-Looking Cautionary Statements)

Now I'd like to turn the call over to Nigel Travis.

Nigel Travis

Thank you, Stacey, and thanks to everyone for joining today's call to discuss our fourth quarter and fiscal year 2014 results. The last few weeks have been extremely busy, with our various international development agreements and a very successful debt refinancing that Paul Carbone will take you through later on. It's interesting, talking to debt investors has been very instructive as they are less familiar with our story, and it's helped us gain clarity on how we talk about the future of our company. Despite some of the struggles in 2014, I remain really excited about the future of Dunkin' Brands.

When you go back to when we went public in July 2011 and look at the numbers of stores we've opened. We've opened 2,500, and I think we can add another 3,000 by the end of 2018. This will be achieved by our number one focus, which is our unremitting focus on franchise economics. At the same time, in the next several years, we will evolve our brands to incorporate health and wellness initiatives in the same manner that you've seen us become a major player in the digital space. We were an early leader in health and wellness with the introduction of DD Smart and BR Bright Choices back in 2008, and have followed a choice-based product strategy with these better-for-you menu items.

In other words, we have added healthier products to our menu without compromising taste, quality or value. For example, we launched our Turkey Sausage sandwich as a limited time offer in 2013, and it was so good guests and franchisees insisted we keep it on our menu permanently. We're currently promoting our Turkey Sausage sandwich on our new multigrain flatbread, which qualifies as the basic whole grain stamp and offers guests a 410-calorie balanced breakfast choice. On the Baskin-Robbins side, in addition to our premium ice creams, we now offer Greek frozen yogurts, lactose-free ice cream and dairy-free sorbets.

These are just a few of the examples of the ways in which we're constantly looking to expand our menu to appeal to our guests and their ever-evolving daily needs and preferences.