Dunkin' Brands Group Inc (NASDAQ:DNKN) Q1 2018 Earnings Conference Call - Preliminary Transcript
Apr 26, 2018 • 08:00 am ET
gift card programs, and our marketing fund balances.
We used $29 million in cash during the quarter to pay our Q1 cash dividend to our shareholders. In our press release this morning, we updated and reiterated certain targets regarding our 2018 performance. We now expect full year weighted average shares outstanding of approximately 85 million which is inclusive of the $650 million share repurchase program entered into during the first quarter of fiscal 2018.
And we now expect an effective tax rate for fiscal 2018 of approximately 25%. This updated tax rate includes the impact of the $7.6 million excess tax benefit recognized during the first quarter, which reduced the expected full year effective tax rate by approximately 300 basis points. As a reminder, during the first quarter of fiscal 2017, we adopted a new accounting standard for share-based payment transactions, including excess tax benefits.
Excess tax benefits will vary in our future periods and the amounts are dependent on the number of employee stock options exercise and fluctuations in our stock price. This guidance excludes any potential future impact from material excess tax benefits in subsequent quarters of fiscal 2018. As a result of these updates, we now expect diluted earnings per share of $2.49 to $2.58, and diluted adjusted earnings per share of $2.69 to $2.74, which reflects the impact of the revised share count and full year effective tax rate.
Lastly, along with our franchisees, we made important progress during the quarter regarding how we plan to deploy the $100 million investment in the blueprint for Dunkin' Donuts US to support the next generation concepts and our beverage led positioning. However, there was no material impact to our P&L or to our cash flows during the quarter. When we do start to deploy the investment, we will provide updates to you to accordingly.
And with that, I will turn it over to the operator to open the call for Q&A.