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Dunkin’ Donuts Reports 2Q Results

August 3/Canton, Mass./PRNewswire -- Dunkin' Brands Group Inc. reported results for the quarter ended June 25, 2011. "We delivered strong results for the quarter as a result of our continued focus on driving comparable store sales, expanding contiguously in the U.S., and accelerating international growth across both brands," said Nigel Travis, chief executive officer, Dunkin' Brands Inc., and president, Dunkin' Donuts. "Our emphasis on operational excellence and exciting product innovations, supported by great marketing, produced strong global system-wide sales and comparable store sales growth for Dunkin' Donuts U.S., while our franchisees and licensees continued to drive new store growth, both domestically and internationally."

Global system-wide sales increased approximately 6.9% over second quarter 2010.

Consolidated U.S. comparable store sales increased 3.2%. Dunkin' Donuts U.S. comparable store sales increased 3.8%, while Baskin-Robbins U.S. comparable store sales decreased 2.8%.

Dunkin' Brands' franchisees and licensees opened 140 net new Dunkin' Donuts and Baskin-Robbins locations on a global basis during the quarter, and 234 during the first six months of 2011, increasing Dunkin' Brands total points of distribution to 16,427 at the end of the second quarter.

Revenues increased by more than 4%, to $157.0 million for the second quarter of 2011, compared to $150.4 million for the same period in 2010. The company re-franchised 13 stores between the second quarter of 2010 and the second quarter of 2011. Excluding company-owned stores for both periods, revenues grew approximately 6%.

Operating income was $61.8 million, compared to $57.9 million for the second quarter of 2010, representing a 6.8% year-over-year increase. Operating income growth over the prior period was impacted by higher ice cream costs due to rising commodity prices.

Net income was $17.2 million compared to $17.3 million for the second quarter of 2010.

Adjusted net income for the quarter was $24.7 million compared to $25.6 million for the second quarter of 2010.

The global system-wide sales growth for the second quarter was primarily attributable to Dunkin' Donuts U.S. comparable store sales growth (which includes stores open 54 weeks or more), growth in Dunkin' Donuts and Baskin-Robbins international sales, and global store development.

From the August 3, 2011,Prepared Foods' Daily News.