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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Dunkin Brands Group Inc | NASDAQ:DNKN | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 106.48 | 106.49 | 100.00 | 0 | 01:00:00 |
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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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Delaware
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20-4145825
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer
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x
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller Reporting Company
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¨
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Page
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Part I. – Financial Information
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Part II. – Other Information
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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June 28,
2014 |
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December 28,
2013 |
|||
Assets
|
|
|
|
|||
Current assets:
|
|
|
|
|||
Cash and cash equivalents
|
$
|
176,381
|
|
|
256,933
|
|
Accounts receivable, net of allowance for doubtful accounts of $3,068 and $2,599 as of June 28, 2014 and December 28, 2013, respectively
|
54,979
|
|
|
47,162
|
|
|
Notes and other receivables, net of allowance for doubtful accounts of $1,448 and $659 as of June 28, 2014 and December 28, 2013, respectively
|
13,579
|
|
|
32,603
|
|
|
Deferred income taxes, net
|
46,284
|
|
|
46,461
|
|
|
Restricted assets of advertising funds
|
35,142
|
|
|
31,493
|
|
|
Prepaid income taxes
|
8,351
|
|
|
25,699
|
|
|
Prepaid expenses and other current assets
|
21,479
|
|
|
21,409
|
|
|
Total current assets
|
356,195
|
|
|
461,760
|
|
|
Property and equipment, net of accumulated depreciation of $100,475 and $105,834 as of June 28, 2014 and December 28, 2013, respectively
|
178,361
|
|
|
182,858
|
|
|
Equity method investments
|
175,677
|
|
|
170,644
|
|
|
Goodwill
|
890,362
|
|
|
891,598
|
|
|
Other intangible assets, net of accumulated amortization of $210,745 and $200,248 as of June 28, 2014 and December 28, 2013, respectively
|
1,439,101
|
|
|
1,452,205
|
|
|
Other assets
|
64,795
|
|
|
75,625
|
|
|
Total assets
|
$
|
3,104,491
|
|
|
3,234,690
|
|
Liabilities, Redeemable Noncontrolling Interests, and Stockholders’ Equity
|
|
|||||
Current liabilities:
|
|
|
|
|||
Current portion of long-term debt
|
$
|
—
|
|
|
5,000
|
|
Capital lease obligations
|
480
|
|
|
432
|
|
|
Accounts payable
|
12,535
|
|
|
12,445
|
|
|
Liabilities of advertising funds
|
41,312
|
|
|
49,077
|
|
|
Deferred income
|
30,623
|
|
|
28,426
|
|
|
Other current liabilities
|
186,930
|
|
|
248,918
|
|
|
Total current liabilities
|
271,880
|
|
|
344,298
|
|
|
Long-term debt, net
|
1,808,679
|
|
|
1,818,609
|
|
|
Capital lease obligations
|
7,042
|
|
|
6,996
|
|
|
Unfavorable operating leases acquired
|
15,752
|
|
|
16,834
|
|
|
Deferred income
|
13,758
|
|
|
11,135
|
|
|
Deferred income taxes, net
|
550,541
|
|
|
561,714
|
|
|
Other long-term liabilities
|
66,614
|
|
|
62,816
|
|
|
Total long-term liabilities
|
2,462,386
|
|
|
2,478,104
|
|
|
Commitments and contingencies (note 10)
|
|
|
|
|||
Redeemable noncontrolling interests
|
6,044
|
|
|
4,930
|
|
|
Stockholders’ equity:
|
|
|
|
|||
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding at June 28, 2014 and December 28, 2013, respectively
|
—
|
|
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—
|
|
|
Common stock, $0.001 par value; 475,000,000 shares authorized; 106,601,169 issued and 105,601,169 outstanding at June 28, 2014; 106,876,919 shares issued and 106,646,219 shares outstanding at December 28, 2013
|
106
|
|
|
107
|
|
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Additional paid-in capital
|
1,153,690
|
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1,196,426
|
|
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Treasury stock, at cost
|
(44,587
|
)
|
|
(10,773
|
)
|
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Accumulated deficit
|
(747,352
|
)
|
|
(779,741
|
)
|
|
Accumulated other comprehensive income
|
2,324
|
|
|
1,339
|
|
|
Total stockholders’ equity
|
364,181
|
|
|
407,358
|
|
|
Total liabilities, redeemable noncontrolling interests, and stockholders’ equity
|
$
|
3,104,491
|
|
|
3,234,690
|
|
|
Three months ended
|
|
Six months ended
|
|||||||||
|
June 28,
2014 |
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June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
|||||
Revenues:
|
|
|
|
|
|
|||||||
Franchise fees and royalty income
|
$
|
122,267
|
|
|
112,794
|
|
|
228,979
|
|
|
216,559
|
|
Rental income
|
25,633
|
|
|
25,055
|
|
|
48,080
|
|
|
47,487
|
|
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Sales of ice cream products
|
32,044
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|
|
32,809
|
|
|
60,715
|
|
|
56,389
|
|
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Sales at company-owned restaurants
|
4,736
|
|
|
6,240
|
|
|
11,052
|
|
|
12,011
|
|
|
Other revenues
|
6,228
|
|
|
5,590
|
|
|
14,030
|
|
|
11,900
|
|
|
Total revenues
|
190,908
|
|
|
182,488
|
|
|
362,856
|
|
|
344,346
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|||||||
Occupancy expenses—franchised restaurants
|
13,560
|
|
|
12,820
|
|
|
26,572
|
|
|
25,596
|
|
|
Cost of ice cream products
|
22,995
|
|
|
24,302
|
|
|
42,743
|
|
|
40,288
|
|
|
Company-owned restaurant expenses
|
4,904
|
|
|
5,940
|
|
|
11,267
|
|
|
11,595
|
|
|
General and administrative expenses, net
|
56,381
|
|
|
62,978
|
|
|
116,095
|
|
|
118,555
|
|
|
Depreciation
|
4,930
|
|
|
5,522
|
|
|
9,843
|
|
|
11,370
|
|
|
Amortization of other intangible assets
|
6,384
|
|
|
6,565
|
|
|
12,789
|
|
|
13,147
|
|
|
Long-lived asset impairment charges
|
523
|
|
|
107
|
|
|
646
|
|
|
355
|
|
|
Total operating costs and expenses
|
109,677
|
|
|
118,234
|
|
|
219,955
|
|
|
220,906
|
|
|
Net income of equity method investments
|
4,048
|
|
|
4,782
|
|
|
7,148
|
|
|
7,869
|
|
|
Other operating income, net
|
2,278
|
|
|
7,769
|
|
|
6,605
|
|
|
8,955
|
|
|
Operating income
|
87,557
|
|
|
76,805
|
|
|
156,654
|
|
|
140,264
|
|
|
Other income (expense), net:
|
|
|
|
|
|
|||||||
Interest income
|
69
|
|
|
91
|
|
|
138
|
|
|
205
|
|
|
Interest expense
|
(16,823
|
)
|
|
(19,886
|
)
|
|
(34,764
|
)
|
|
(40,718
|
)
|
|
Loss on debt extinguishment and refinancing transactions
|
—
|
|
|
—
|
|
|
(13,735
|
)
|
|
(5,018
|
)
|
|
Other losses, net
|
(113
|
)
|
|
(813
|
)
|
|
(86
|
)
|
|
(1,203
|
)
|
|
Total other expense, net
|
(16,867
|
)
|
|
(20,608
|
)
|
|
(48,447
|
)
|
|
(46,734
|
)
|
|
Income before income taxes
|
70,690
|
|
|
56,197
|
|
|
108,207
|
|
|
93,530
|
|
|
Provision for income taxes
|
24,719
|
|
|
15,487
|
|
|
39,408
|
|
|
29,159
|
|
|
Net income including noncontrolling interests
|
45,971
|
|
|
40,710
|
|
|
68,799
|
|
|
64,371
|
|
|
Net loss attributable to noncontrolling interests
|
(220
|
)
|
|
(102
|
)
|
|
(348
|
)
|
|
(239
|
)
|
|
Net income attributable to Dunkin’ Brands
|
$
|
46,191
|
|
|
40,812
|
|
|
69,147
|
|
|
64,610
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|||||
Common—basic
|
$
|
0.44
|
|
|
0.38
|
|
|
0.65
|
|
|
0.61
|
|
Common—diluted
|
0.43
|
|
|
0.38
|
|
|
0.64
|
|
|
0.60
|
|
|
Cash dividends declared per common share
|
0.23
|
|
|
0.19
|
|
|
0.46
|
|
|
0.38
|
|
|
Three months ended
|
|
Six months ended
|
|||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
|||||
Net income including noncontrolling interests
|
$
|
45,971
|
|
|
40,710
|
|
|
68,799
|
|
|
64,371
|
|
Other comprehensive income (loss), net:
|
|
|
|
|
|
|
|
|||||
Effect of foreign currency translation, net of deferred tax expense (benefit) of $(136) and $240 for the three months ended June 28, 2014 and June 29, 2013, respectively, and $177 and $374 for the six months ended June 28, 2014 and June 29, 2013, respectively
|
2,231
|
|
|
(5,898
|
)
|
|
3,522
|
|
|
(16,703
|
)
|
|
Unrealized gains (losses) on interest rate swaps, net of deferred tax expense (benefit) of $(1,610) and $5,737 for the three months ended June 28, 2014 and June 29, 2013, respectively, and $(2,067) and $6,299 for the six months ended June 28, 2014 and June 29, 2013, respectively
|
(2,357
|
)
|
|
8,437
|
|
|
(3,058
|
)
|
|
9,216
|
|
|
Other, net
|
(137
|
)
|
|
99
|
|
|
521
|
|
|
119
|
|
|
Total other comprehensive income (loss), net
|
(263
|
)
|
|
2,638
|
|
|
985
|
|
|
(7,368
|
)
|
|
Comprehensive income including noncontrolling interests
|
45,708
|
|
|
43,348
|
|
|
69,784
|
|
|
57,003
|
|
|
Comprehensive loss attributable to noncontrolling interests
|
(220
|
)
|
|
(102
|
)
|
|
(348
|
)
|
|
(239
|
)
|
|
Comprehensive income attributable to Dunkin’ Brands
|
$
|
45,928
|
|
|
43,450
|
|
|
70,132
|
|
|
57,242
|
|
|
Six months ended
|
|||||
|
June 28, 2014
|
|
June 29, 2013
|
|||
Cash flows from operating activities:
|
|
|
|
|||
Net income including noncontrolling interests
|
$
|
68,799
|
|
|
64,371
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|||
Depreciation and amortization
|
22,632
|
|
|
24,517
|
|
|
Amortization of deferred financing costs and original issue discount
|
2,010
|
|
|
2,473
|
|
|
Loss on debt extinguishment and refinancing transactions
|
13,735
|
|
|
5,018
|
|
|
Deferred income taxes
|
(9,303
|
)
|
|
(5,812
|
)
|
|
Provision for (recovery of) bad debt
|
839
|
|
|
(186
|
)
|
|
Share-based compensation expense
|
4,926
|
|
|
3,661
|
|
|
Net income of equity method investments
|
(7,148
|
)
|
|
(7,869
|
)
|
|
Dividends received from equity method investments
|
5,825
|
|
|
5,527
|
|
|
Gain on sale of joint venture
|
—
|
|
|
(6,984
|
)
|
|
Gain on sale of real estate and company-owned restaurants
|
(6,442
|
)
|
|
(772
|
)
|
|
Other, net
|
(914
|
)
|
|
(651
|
)
|
|
Change in operating assets and liabilities:
|
|
|
|
|||
Accounts, notes, and other receivables, net
|
10,650
|
|
|
(4,969
|
)
|
|
Other current assets
|
454
|
|
|
1,012
|
|
|
Accounts payable
|
(716
|
)
|
|
(158
|
)
|
|
Other current liabilities
|
(61,083
|
)
|
|
(63,358
|
)
|
|
Liabilities of advertising funds, net
|
(10,938
|
)
|
|
(1,043
|
)
|
|
Income taxes payable, net
|
17,522
|
|
|
(5,935
|
)
|
|
Deferred income
|
4,820
|
|
|
(958
|
)
|
|
Other, net
|
4,003
|
|
|
1,673
|
|
|
Net cash provided by operating activities
|
59,671
|
|
|
9,557
|
|
|
Cash flows from investing activities:
|
|
|
|
|||
Additions to property and equipment
|
(10,556
|
)
|
|
(12,507
|
)
|
|
Proceeds from sale of real estate and company-owned restaurants
|
12,761
|
|
|
—
|
|
|
Proceeds from sale of joint venture
|
—
|
|
|
7,200
|
|
|
Other, net
|
(1,520
|
)
|
|
(1,522
|
)
|
|
Net cash provided by (used in) investing activities
|
685
|
|
|
(6,829
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|||
Repayment of long-term debt
|
(15,000
|
)
|
|
(19,157
|
)
|
|
Payment of deferred financing and other debt-related costs
|
(8,977
|
)
|
|
(6,157
|
)
|
|
Dividends paid on common stock
|
(48,759
|
)
|
|
(40,450
|
)
|
|
Repurchases of common stock
|
(81,046
|
)
|
|
(16,756
|
)
|
|
Exercise of stock options
|
4,293
|
|
|
4,642
|
|
|
Excess tax benefits from share-based compensation
|
7,821
|
|
|
—
|
|
|
Other, net
|
718
|
|
|
(208
|
)
|
|
Net cash used in financing activities
|
(140,950
|
)
|
|
(78,086
|
)
|
|
Effect of exchange rates on cash and cash equivalents
|
42
|
|
|
(261
|
)
|
|
Decrease in cash and cash equivalents
|
(80,552
|
)
|
|
(75,619
|
)
|
|
Cash and cash equivalents, beginning of period
|
256,933
|
|
|
252,618
|
|
|
Cash and cash equivalents, end of period
|
$
|
176,381
|
|
|
176,999
|
|
Supplemental cash flow information:
|
|
|
|
|||
Cash paid for income taxes
|
$
|
24,068
|
|
|
41,732
|
|
Cash paid for interest
|
32,859
|
|
|
49,804
|
|
|
Noncash investing activities:
|
|
|
|
|||
Property and equipment included in accounts payable and other current liabilities
|
1,622
|
|
|
1,890
|
|
|
Purchase of leaseholds in exchange for capital lease obligations
|
294
|
|
|
173
|
|
|
June 28, 2014
|
|
December 28, 2013
|
|||||||||||||||
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Significant
other
observable
inputs
(Level 2)
|
|
Total
|
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Significant
other
observable
inputs
(Level 2)
|
|
Total
|
|||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Mutual funds
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
1,012
|
|
|
—
|
|
|
1,012
|
|
Interest rate swaps
|
—
|
|
|
5,083
|
|
|
5,083
|
|
|
—
|
|
|
10,221
|
|
|
10,221
|
|
|
Total assets
|
$
|
—
|
|
|
5,083
|
|
|
5,083
|
|
|
1,012
|
|
|
10,221
|
|
|
11,233
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Deferred compensation liabilities
|
$
|
—
|
|
|
7,996
|
|
|
7,996
|
|
|
—
|
|
|
7,181
|
|
|
7,181
|
|
Total liabilities
|
$
|
—
|
|
|
7,996
|
|
|
7,996
|
|
|
—
|
|
|
7,181
|
|
|
7,181
|
|
|
June 28, 2014
|
|
December 28, 2013
|
|||||||||
|
Carrying Value
|
|
Estimated fair value
|
|
Carrying Value
|
|
Estimated fair value
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|||||
Term loans
|
$
|
1,808,679
|
|
|
1,807,405
|
|
|
1,823,609
|
|
|
1,836,212
|
|
|
Three months ended
|
|
Six months ended
|
|||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
|||||
Royalty income
|
$
|
112,732
|
|
|
106,254
|
|
|
211,331
|
|
|
199,476
|
|
Initial franchise fees and renewal income
|
9,535
|
|
|
6,540
|
|
|
17,648
|
|
|
17,083
|
|
|
Total franchise fees and royalty income
|
$
|
122,267
|
|
|
112,794
|
|
|
228,979
|
|
|
216,559
|
|
|
Three months ended
|
|
Six months ended
|
||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
||||
Systemwide Points of Distribution:
|
|
|
|
|
|
|
|
||||
Franchised points of distribution in operation—beginning of period
|
18,218
|
|
|
17,446
|
|
|
18,122
|
|
|
17,333
|
|
Franchised points of distribution—opened
|
315
|
|
|
300
|
|
|
581
|
|
|
544
|
|
Franchised points of distribution—closed
|
(167
|
)
|
|
(149
|
)
|
|
(337
|
)
|
|
(280
|
)
|
Net transfers from company-owned points of distribution
|
10
|
|
|
—
|
|
|
10
|
|
|
—
|
|
Franchised points of distribution in operation—end of period
|
18,376
|
|
|
17,597
|
|
|
18,376
|
|
|
17,597
|
|
Company-owned points of distribution—end of period
|
29
|
|
|
30
|
|
|
29
|
|
|
30
|
|
Total systemwide points of distribution—end of period
|
18,405
|
|
|
17,627
|
|
|
18,405
|
|
|
17,627
|
|
|
June 28,
2014 |
|
December 28,
2013 |
|
Consolidated Balance Sheet Classification
|
|||
Interest rate swaps
|
$
|
5,083
|
|
|
10,221
|
|
|
Other assets
|
Total fair values of derivative instruments
|
$
|
5,083
|
|
|
10,221
|
|
|
|
Three months ended June 28, 2014
|
|||||||||||||
Derivatives designated as cash flow hedging instruments
|
|
Amount of gain (loss) recognized in other comprehensive income (loss)
|
|
Amount of net gain (loss) reclassified into earnings
(1)
|
|
Consolidated statement of operations classification
|
|
Total effect on other comprehensive income (loss)
|
|||||
Interest rate swaps
|
|
$
|
(5,138
|
)
|
|
(1,171
|
)
|
|
Interest expense
|
|
$
|
(3,967
|
)
|
Income tax effect
|
|
2,090
|
|
|
480
|
|
|
Provision for income taxes
|
|
1,610
|
|
||
Net of income taxes
|
|
$
|
(3,048
|
)
|
|
(691
|
)
|
|
|
|
$
|
(2,357
|
)
|
|
|
|
|
|
|
|
|
|
|||||
Three months ended June 29, 2013
|
|||||||||||||
Derivatives designated as cash flow hedging instruments
|
|
Amount of gain (loss) recognized in other comprehensive income (loss)
|
|
Amount of net gain (loss) reclassified into earnings
|
|
Consolidated statement of operations classification
|
|
Total effect on other comprehensive income (loss)
|
|||||
Interest rate swaps
|
|
$
|
13,328
|
|
|
(846
|
)
|
|
Interest expense
|
|
$
|
14,174
|
|
Income tax effect
|
|
(5,395
|
)
|
|
342
|
|
|
Provision for income taxes
|
|
(5,737
|
)
|
||
Net of income taxes
|
|
$
|
7,933
|
|
|
(504
|
)
|
|
|
|
$
|
8,437
|
|
Six months ended June 28, 2014
|
|||||||||||||
Derivatives designated as cash flow hedging instruments
|
|
Amount of gain (loss) recognized in other comprehensive income (loss)
|
|
Amount of net gain (loss) reclassified into earnings
(1)
|
|
Consolidated statement of operations classification
|
|
Total effect on other comprehensive income (loss)
|
|||||
Interest rate swaps
|
|
$
|
(7,173
|
)
|
|
(2,048
|
)
|
|
Interest expense
|
|
$
|
(5,125
|
)
|
Income tax effect
|
|
2,893
|
|
|
826
|
|
|
Provision for income taxes
|
|
2,067
|
|
||
Net of income taxes
|
|
$
|
(4,280
|
)
|
|
(1,222
|
)
|
|
|
|
$
|
(3,058
|
)
|
|
|
|
|
|
|
|
|
|
|||||
Six months ended June 29, 2013
|
|||||||||||||
Derivatives designated as cash flow hedging instruments
|
|
Amount of gain (loss) recognized in other comprehensive income (loss)
|
|
Amount of net gain (loss) reclassified into earnings
|
|
Consolidated statement of operations classification
|
|
Total effect on other comprehensive income (loss)
|
|||||
Interest rate swaps
|
|
$
|
13,823
|
|
|
(1,692
|
)
|
|
Interest expense
|
|
$
|
15,515
|
|
Income tax effect
|
|
(5,602
|
)
|
|
697
|
|
|
Provision for income taxes
|
|
(6,299
|
)
|
||
Net of income taxes
|
|
$
|
8,221
|
|
|
(995
|
)
|
|
|
|
$
|
9,216
|
|
(1)
|
The total net gain (loss) reclassified from accumulated other comprehensive income into interest expense in the consolidated statements of operations includes the straight-line amortization of the unrealized gain that remained in accumulated other comprehensive income as of the date of the amendment.
|
|
June 28,
2014 |
|
December 28,
2013 |
|||
Gift card/certificate liability
|
$
|
99,386
|
|
|
139,721
|
|
Gift card breakage liability
|
11,551
|
|
|
14,093
|
|
|
Accrued salary and benefits
|
17,490
|
|
|
26,713
|
|
|
Accrued legal liabilities (see note 10(c))
|
26,085
|
|
|
26,633
|
|
|
Accrued interest
|
10,015
|
|
|
9,999
|
|
|
Accrued professional costs
|
2,942
|
|
|
2,938
|
|
|
Other
|
19,461
|
|
|
28,821
|
|
|
Total other current liabilities
|
$
|
186,930
|
|
|
248,918
|
|
|
Revenues
|
||||||||||||
|
Three months ended
|
|
Six months ended
|
||||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
||||||
Dunkin’ Donuts U.S.
|
$
|
136,450
|
|
|
128,672
|
|
|
261,669
|
|
|
$
|
248,306
|
|
Dunkin’ Donuts International
|
4,521
|
|
|
3,931
|
|
|
8,806
|
|
|
8,554
|
|
||
Baskin-Robbins U.S.
|
12,952
|
|
|
12,489
|
|
|
22,073
|
|
|
22,101
|
|
||
Baskin-Robbins International
|
33,631
|
|
|
34,917
|
|
|
63,642
|
|
|
60,345
|
|
||
Total reportable segment revenues
|
187,554
|
|
|
180,009
|
|
|
356,190
|
|
|
339,306
|
|
||
Other
|
3,354
|
|
|
2,479
|
|
|
6,666
|
|
|
5,040
|
|
||
Total revenues
|
$
|
190,908
|
|
|
182,488
|
|
|
362,856
|
|
|
344,346
|
|
|
Segment profit
|
|||||||||||
|
Three months ended
|
|
Six months ended
|
|||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
|||||
Dunkin’ Donuts U.S.
|
$
|
100,981
|
|
|
91,302
|
|
|
190,813
|
|
|
174,857
|
|
Dunkin’ Donuts International
|
3,015
|
|
|
1,581
|
|
|
5,872
|
|
|
4,133
|
|
|
Baskin-Robbins U.S.
|
9,315
|
|
|
7,856
|
|
|
14,183
|
|
|
13,449
|
|
|
Baskin-Robbins International
|
11,724
|
|
|
19,411
|
|
|
21,223
|
|
|
28,709
|
|
|
Total reportable segments
|
125,035
|
|
|
120,150
|
|
|
232,091
|
|
|
221,148
|
|
|
Corporate
|
(30,871
|
)
|
|
(28,982
|
)
|
|
(62,302
|
)
|
|
(59,294
|
)
|
|
Interest expense, net
|
(16,754
|
)
|
|
(19,795
|
)
|
|
(34,626
|
)
|
|
(40,513
|
)
|
|
Amortization of other intangible assets
|
(6,384
|
)
|
|
(6,565
|
)
|
|
(12,789
|
)
|
|
(13,147
|
)
|
|
Long-lived asset impairment charges
|
(523
|
)
|
|
(107
|
)
|
|
(646
|
)
|
|
(355
|
)
|
|
Loss on debt extinguishment and refinancing transactions
|
—
|
|
|
—
|
|
|
(13,735
|
)
|
|
(5,018
|
)
|
|
Other losses, net
|
(113
|
)
|
|
(813
|
)
|
|
(86
|
)
|
|
(1,203
|
)
|
|
Operating income adjustments excluded from reportable segments
|
300
|
|
|
(7,691
|
)
|
|
300
|
|
|
(8,088
|
)
|
|
Income before income taxes
|
$
|
70,690
|
|
|
56,197
|
|
|
108,207
|
|
|
93,530
|
|
|
Net income of equity method investments
|
||||||||||||
|
Three months ended
|
|
Six months ended
|
||||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
||||||
Dunkin’ Donuts International
|
$
|
672
|
|
|
368
|
|
|
976
|
|
|
254
|
|
|
Baskin-Robbins International
|
3,019
|
|
|
4,126
|
|
|
5,477
|
|
|
6,664
|
|
||
Total reportable segments
|
3,691
|
|
|
4,494
|
|
|
6,453
|
|
|
6,918
|
|
||
Other
|
357
|
|
|
288
|
|
|
695
|
|
|
951
|
|
||
Total net income of equity method investments
|
$
|
4,048
|
|
|
4,782
|
|
|
$
|
7,148
|
|
|
7,869
|
|
|
|
Total stockholders’ equity
|
|
Redeemable noncontrolling interests
|
|||
Balance at December 28, 2013
|
|
$
|
407,358
|
|
|
4,930
|
|
Net income
|
|
69,147
|
|
|
(348
|
)
|
|
Other comprehensive income
|
|
985
|
|
|
—
|
|
|
Dividends paid on common stock
|
|
(48,759
|
)
|
|
—
|
|
|
Exercise of stock options
|
|
4,293
|
|
|
—
|
|
|
Repurchases of common stock
|
|
(81,046
|
)
|
|
—
|
|
|
Share-based compensation expense
|
|
4,926
|
|
|
—
|
|
|
Excess tax benefits from share-based compensation
|
|
7,821
|
|
|
—
|
|
|
Contributions from noncontrolling interests
|
|
—
|
|
|
1,462
|
|
|
Other, net
|
|
(544
|
)
|
|
—
|
|
|
Balance at June 28, 2014
|
|
$
|
364,181
|
|
|
6,044
|
|
|
Effect of foreign
currency
translation
|
|
Unrealized gains (losses) on interest rate swaps
|
|
Unrealized gain (loss) on pension plan
|
|
Other
|
|
Accumulated
other
comprehensive
income
|
||||||
Balance at December 28, 2013
|
$
|
5
|
|
|
6,085
|
|
|
(3,098
|
)
|
|
(1,653
|
)
|
|
1,339
|
|
Other comprehensive income (loss)
|
3,522
|
|
|
(3,058
|
)
|
|
35
|
|
|
486
|
|
|
985
|
|
|
Balance at June 28, 2014
|
$
|
3,527
|
|
|
3,027
|
|
|
(3,063
|
)
|
|
(1,167
|
)
|
|
2,324
|
|
|
Three months ended
|
|
Six months ended
|
|||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
|||||
Net income attributable to Dunkin’ Brands—basic and diluted
|
$
|
46,191
|
|
|
40,812
|
|
|
69,147
|
|
|
64,610
|
|
Weighted average number of common shares:
|
|
|
|
|
|
|
|
|||||
Common—basic
|
105,914,402
|
|
|
106,485,078
|
|
|
106,208,129
|
|
|
106,365,758
|
|
|
Common—diluted
|
107,186,360
|
|
|
108,211,994
|
|
|
107,583,260
|
|
|
108,185,485
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|||||
Common—basic
|
$
|
0.44
|
|
|
0.38
|
|
|
0.65
|
|
|
0.61
|
|
Common—diluted
|
0.43
|
|
|
0.38
|
|
|
0.64
|
|
|
0.60
|
|
|
Three months ended
|
|
Six months ended
|
|||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
|||||
B-R 31 Ice Cream Co., Ltd.
|
$
|
533
|
|
|
602
|
|
|
844
|
|
|
1,004
|
|
BR Korea Co., Ltd.
|
1,178
|
|
|
1,019
|
|
|
2,225
|
|
|
2,029
|
|
|
Coffee Alliance, S.L. (“Coffee Alliance”)
|
17
|
|
|
32
|
|
|
17
|
|
|
130
|
|
|
|
$
|
1,728
|
|
|
1,653
|
|
|
3,086
|
|
|
3,163
|
|
|
Three months ended
|
|
Six months ended
|
|||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
|||||
Franchisee-reported sales (in millions):
|
|
|
|
|
|
|
|
|||||
Dunkin’ Donuts U.S.
|
$
|
1,813.2
|
|
|
1,704.5
|
|
|
3,428.1
|
|
|
3,230.5
|
|
Dunkin’ Donuts International
|
176.7
|
|
|
170.8
|
|
|
345.4
|
|
|
338.8
|
|
|
Baskin-Robbins U.S.
|
169.1
|
|
|
161.9
|
|
|
278.9
|
|
|
269.5
|
|
|
Baskin-Robbins International
|
377.3
|
|
|
360.4
|
|
|
659.4
|
|
|
645.2
|
|
|
Total franchisee-reported sales
(a)
|
$
|
2,536.4
|
|
|
2,397.6
|
|
|
4,711.8
|
|
|
4,484.0
|
|
Systemwide sales growth
|
5.7
|
%
|
|
5.5
|
%
|
|
5.0
|
%
|
|
5.4
|
%
|
|
Comparable store sales growth (decline):
|
|
|
|
|
|
|
|
|||||
Dunkin’ Donuts U.S.
|
1.8
|
%
|
|
4.0
|
%
|
|
1.5
|
%
|
|
2.9
|
%
|
|
Dunkin’ Donuts International
|
(3.1
|
)%
|
|
(1.7
|
)%
|
|
(2.7
|
)%
|
|
(0.1
|
)%
|
|
Baskin-Robbins U.S.
|
4.2
|
%
|
|
1.6
|
%
|
|
2.6
|
%
|
|
(0.9
|
)%
|
|
Baskin-Robbins International
|
(1.6
|
)%
|
|
2.6
|
%
|
|
(0.3
|
)%
|
|
3.3
|
%
|
|
Financial data (in thousands):
|
|
|
|
|
|
|
|
|||||
Total revenues
|
$
|
190,908
|
|
|
182,488
|
|
|
362,856
|
|
|
344,346
|
|
Operating income
|
87,557
|
|
|
76,805
|
|
|
156,654
|
|
|
140,264
|
|
|
Adjusted operating income
|
94,164
|
|
|
91,168
|
|
|
169,789
|
|
|
161,854
|
|
|
Net income attributable to Dunkin’ Brands
|
46,191
|
|
|
40,812
|
|
|
69,147
|
|
|
64,610
|
|
|
Adjusted net income
|
50,155
|
|
|
43,881
|
|
|
85,783
|
|
|
75,026
|
|
•
|
Dunkin’ Donuts U.S. systemwide sales growth of
6.3%
and
6.1%
for the
three and six months ended
June 28, 2014
, respectively, as a result of 374 net new restaurants opened since
June 29, 2013
and comparable store sales growth of
1.8%
and
1.5%
, respectively, driven by higher traffic and increased average ticket resulting from guests purchasing more items per transaction and positive mix as guests purchased more premium-priced items. Growth was driven by beverages, breakfast sandwiches, and donuts.
|
•
|
Dunkin’ Donuts International systemwide sales growth of
3.5%
and
1.9%
for the
three and six months ended
June 28, 2014
, respectively, driven primarily by sales growth in the Middle East, Germany, Spain, and India due to net new units and comparable store sales growth, offset by a decline in South Korea. Dunkin’ Donuts International comparable store sales declined
3.1%
and
2.7%
for the
three and six months ended
June 28, 2014
, respectively, driven primarily by a decline in South Korea, offset by growth in the Middle East.
|
•
|
Baskin-Robbins U.S. systemwide sales growth of
4.5%
and
3.6%
for the
three and six months ended
June 28, 2014
, respectively, resulting primarily from comparable store sales growth of
4.2%
and
2.6%
, respectively, driven by increased sales of cups and cones, cakes, beverages, as well as the launch of online cake ordering.
|
•
|
Baskin-Robbins International systemwide sales growth of
4.7%
and
2.2%
for the
three and six months ended
June 28, 2014
, respectively, driven by sales growth in South Korea and the Middle East. Baskin-Robbins International comparable store sales declined
1.6%
and
0.3%
for the
three and six months ended
June 28, 2014
, respectively, driven by a decline in Japan, offset by growth in South Korea and the Middle East.
|
|
|
|
|
|
June 28, 2014
|
|
June 29, 2013
|
||
Points of distribution, at period end
(a)
:
|
|
|
|
|
|
|
|
||
Dunkin’ Donuts U.S.
|
|
|
|
|
7,821
|
|
|
7,447
|
|
Dunkin’ Donuts International
|
|
|
|
|
3,172
|
|
|
3,070
|
|
Baskin-Robbins U.S.
|
|
|
|
|
2,480
|
|
|
2,470
|
|
Baskin-Robbins International
|
|
|
|
|
4,932
|
|
|
4,640
|
|
Consolidated global points of distribution
|
|
|
|
|
18,405
|
|
|
17,627
|
|
|
Three months ended
|
|
Six months ended
|
||||||||
|
June 28, 2014
|
|
June 29, 2013
|
|
June 28, 2014
|
|
June 29, 2013
|
||||
Net openings (closings), during the period:
|
|
|
|
|
|
|
|
||||
Dunkin’ Donuts U.S.
|
75
|
|
|
63
|
|
|
144
|
|
|
141
|
|
Dunkin’ Donuts International
|
17
|
|
|
33
|
|
|
(9
|
)
|
|
27
|
|
Baskin-Robbins U.S.
|
12
|
|
|
5
|
|
|
13
|
|
|
7
|
|
Baskin-Robbins International
|
47
|
|
|
50
|
|
|
99
|
|
|
84
|
|
Consolidated global net openings
|
151
|
|
|
151
|
|
|
247
|
|
|
259
|
|
|
Three months ended
|
|
Six months ended
|
|||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
|||||
|
(In thousands)
|
|||||||||||
Operating income
|
$
|
87,557
|
|
|
76,805
|
|
|
156,654
|
|
|
140,264
|
|
Adjustments:
|
|
|
|
|
|
|
|
|||||
Amortization of other intangible assets
|
6,384
|
|
|
6,565
|
|
|
12,789
|
|
|
13,147
|
|
|
Long-lived asset impairment charges
|
523
|
|
|
107
|
|
|
646
|
|
|
355
|
|
|
Third-party product volume guarantee
|
(300
|
)
|
|
7,500
|
|
|
(300
|
)
|
|
7,500
|
|
|
Peterborough plant closure costs
(a)
|
—
|
|
|
191
|
|
|
—
|
|
|
588
|
|
|
Adjusted operating income
|
$
|
94,164
|
|
|
91,168
|
|
|
169,789
|
|
|
161,854
|
|
Net income attributable to Dunkin’ Brands
|
$
|
46,191
|
|
|
40,812
|
|
|
69,147
|
|
|
64,610
|
|
Adjustments:
|
|
|
|
|
|
|
|
|||||
Amortization of other intangible assets
|
6,384
|
|
|
6,565
|
|
|
12,789
|
|
|
13,147
|
|
|
Long-lived asset impairment charges
|
523
|
|
|
107
|
|
|
646
|
|
|
355
|
|
|
Third-party product volume guarantee
|
(300
|
)
|
|
7,500
|
|
|
(300
|
)
|
|
7,500
|
|
|
Peterborough plant closure costs
(a)
|
—
|
|
|
191
|
|
|
—
|
|
|
588
|
|
|
Loss on debt extinguishment and refinancing transactions
|
—
|
|
|
—
|
|
|
13,735
|
|
|
5,018
|
|
|
Tax impact of adjustments
(b)
|
(2,643
|
)
|
|
(5,745
|
)
|
|
(10,748
|
)
|
|
(10,643
|
)
|
|
Income tax audit settlements
(c)
|
—
|
|
|
(8,417
|
)
|
|
—
|
|
|
(8,417
|
)
|
|
State tax apportionment
(d)
|
—
|
|
|
2,868
|
|
|
514
|
|
|
2,868
|
|
|
Adjusted net income
|
$
|
50,155
|
|
|
43,881
|
|
|
85,783
|
|
|
75,026
|
|
(a)
|
For the three and six months ended June 29, 2013, the adjustments represent transition-related general and administrative costs incurred related to the closure of the Baskin-Robbins ice cream manufacturing plant in Peterborough, Canada, such as information technology integration, project management, and transportation costs.
|
(b)
|
Tax impact of adjustments calculated at a 40% effective tax rate.
|
(c)
|
Represents income tax benefits resulting from the resolution of historical tax positions settled during the period.
|
(d)
|
Primarily represents deferred tax expense recognized due to an increase in our overall state tax rate resulting from a shift in estimated apportionment of income within state jurisdictions.
|
|
Three months ended
|
|
Six months ended
|
|||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
|||||
Earnings per share:
|
|
|
|
|
|
|
|
|||||
Common—basic
|
$
|
0.44
|
|
|
0.38
|
|
|
0.65
|
|
|
0.61
|
|
Common—diluted
|
0.43
|
|
|
0.38
|
|
|
0.64
|
|
|
0.60
|
|
|
Diluted adjusted earnings per share
|
0.47
|
|
|
0.41
|
|
|
0.80
|
|
|
0.69
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
||||||
|
(In thousands, except share and per share data)
|
||||||||||||
Adjusted net income
|
$
|
50,155
|
|
|
43,881
|
|
|
85,783
|
|
|
$
|
75,026
|
|
Weighted average number of common shares—diluted
|
107,186,360
|
|
|
108,211,994
|
|
|
107,583,260
|
|
|
108,185,485
|
|
||
Diluted adjusted earnings per share
|
$
|
0.47
|
|
|
0.41
|
|
|
0.80
|
|
|
$
|
0.69
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
Increase (Decrease)
|
|
June 28,
2014 |
|
June 29,
2013 |
|
Increase (Decrease)
|
||||||||||||||
$
|
|
%
|
|
$
|
|
%
|
|||||||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||
Franchise fees and royalty income
|
$
|
122,267
|
|
|
112,794
|
|
|
9,473
|
|
|
8.4
|
%
|
|
$
|
228,979
|
|
|
216,559
|
|
|
12,420
|
|
|
5.7
|
%
|
Rental income
|
25,633
|
|
|
25,055
|
|
|
578
|
|
|
2.3
|
%
|
|
48,080
|
|
|
47,487
|
|
|
593
|
|
|
1.2
|
%
|
||
Sales of ice cream products
|
32,044
|
|
|
32,809
|
|
|
(765
|
)
|
|
(2.3
|
)%
|
|
60,715
|
|
|
56,389
|
|
|
4,326
|
|
|
7.7
|
%
|
||
Sales at company-owned restaurants
|
4,736
|
|
|
6,240
|
|
|
(1,504
|
)
|
|
(24.1
|
)%
|
|
11,052
|
|
|
12,011
|
|
|
(959
|
)
|
|
(8.0
|
)%
|
||
Other revenues
|
6,228
|
|
|
5,590
|
|
|
638
|
|
|
11.4
|
%
|
|
14,030
|
|
|
11,900
|
|
|
2,130
|
|
|
17.9
|
%
|
||
Total revenues
|
$
|
190,908
|
|
|
182,488
|
|
|
8,420
|
|
|
4.6
|
%
|
|
$
|
362,856
|
|
|
344,346
|
|
|
18,510
|
|
|
5.4
|
%
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
Increase (Decrease)
|
|
June 28, 2014
|
|
June 29, 2013
|
|
Increase (Decrease)
|
||||||||||||||
$
|
|
%
|
|
$
|
|
%
|
|||||||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||
Occupancy expenses—franchised restaurants
|
$
|
13,560
|
|
|
12,820
|
|
|
740
|
|
|
5.8
|
%
|
|
$
|
26,572
|
|
|
25,596
|
|
|
976
|
|
|
3.8
|
%
|
Cost of ice cream products
|
22,995
|
|
|
24,302
|
|
|
(1,307
|
)
|
|
(5.4
|
)%
|
|
42,743
|
|
|
40,288
|
|
|
2,455
|
|
|
6.1
|
%
|
||
Company-owned restaurant expenses
|
4,904
|
|
|
5,940
|
|
|
(1,036
|
)
|
|
(17.4
|
)%
|
|
11,267
|
|
|
11,595
|
|
|
(328
|
)
|
|
(2.8
|
)%
|
||
General and administrative expenses, net
|
56,381
|
|
|
62,978
|
|
|
(6,597
|
)
|
|
(10.5
|
)%
|
|
116,095
|
|
|
118,555
|
|
|
(2,460
|
)
|
|
(2.1
|
)%
|
||
Depreciation and amortization
|
11,314
|
|
|
12,087
|
|
|
(773
|
)
|
|
(6.4
|
)%
|
|
22,632
|
|
|
24,517
|
|
|
(1,885
|
)
|
|
(7.7
|
)%
|
||
Long-lived asset impairment charges
|
523
|
|
|
107
|
|
|
416
|
|
|
388.8
|
%
|
|
646
|
|
|
355
|
|
|
291
|
|
|
82.0
|
%
|
||
Total operating costs and expenses
|
$
|
109,677
|
|
|
118,234
|
|
|
(8,557
|
)
|
|
(7.2
|
)%
|
|
$
|
219,955
|
|
|
220,906
|
|
|
(951
|
)
|
|
(0.4
|
)%
|
Net income of equity method investments
|
4,048
|
|
|
4,782
|
|
|
(734
|
)
|
|
(15.3
|
)%
|
|
7,148
|
|
|
7,869
|
|
|
(721
|
)
|
|
(9.2
|
)%
|
||
Other operating income
|
2,278
|
|
|
7,769
|
|
|
(5,491
|
)
|
|
(70.7
|
)%
|
|
6,605
|
|
|
8,955
|
|
|
(2,350
|
)
|
|
(26.2
|
)%
|
||
Operating income
|
$
|
87,557
|
|
|
76,805
|
|
|
10,752
|
|
|
14.0
|
%
|
|
$
|
156,654
|
|
|
140,264
|
|
|
16,390
|
|
|
11.7
|
%
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
Increase (Decrease)
|
|
June 28, 2014
|
|
June 29, 2013
|
|
Increase (Decrease)
|
||||||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||
Interest expense, net
|
$
|
16,754
|
|
|
19,795
|
|
|
(3,041
|
)
|
|
(15.4
|
)%
|
|
$
|
34,626
|
|
|
40,513
|
|
|
(5,887
|
)
|
|
(14.5
|
)%
|
Loss on debt extinguishment and refinancing transactions
|
—
|
|
|
—
|
|
|
—
|
|
|
n/m
|
|
|
13,735
|
|
|
5,018
|
|
|
8,717
|
|
|
173.7
|
%
|
||
Other losses, net
|
113
|
|
|
813
|
|
|
(700
|
)
|
|
(86.1
|
)%
|
|
86
|
|
|
1,203
|
|
|
(1,117
|
)
|
|
(92.9
|
)%
|
||
Total other expense
|
$
|
16,867
|
|
|
20,608
|
|
|
(3,741
|
)
|
|
(18.2
|
)%
|
|
$
|
48,447
|
|
|
46,734
|
|
|
1,713
|
|
|
3.7
|
%
|
|
Three months ended
|
|
Six months ended
|
|||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
June 28,
2014 |
|
June 29,
2013 |
|||||
|
($ in thousands, except percentages)
|
|||||||||||
Income before income taxes
|
$
|
70,690
|
|
|
56,197
|
|
|
108,207
|
|
|
93,530
|
|
Provision for income taxes
|
24,719
|
|
|
15,487
|
|
|
39,408
|
|
|
29,159
|
|
|
Effective tax rate
|
35.0
|
%
|
|
27.6
|
%
|
|
36.4
|
%
|
|
31.2
|
%
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
Increase (Decrease)
|
|
June 28, 2014
|
|
June 29, 2013
|
|
Increase (Decrease)
|
||||||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||
Royalty income
|
$
|
98,250
|
|
|
91,954
|
|
|
6,296
|
|
|
6.8
|
%
|
|
$
|
185,887
|
|
|
174,036
|
|
|
11,851
|
|
|
6.8
|
%
|
Franchise fees
|
8,430
|
|
|
5,694
|
|
|
2,736
|
|
|
48.1
|
%
|
|
15,430
|
|
|
15,066
|
|
|
364
|
|
|
2.4
|
%
|
||
Rental income
|
24,611
|
|
|
24,042
|
|
|
569
|
|
|
2.4
|
%
|
|
46,057
|
|
|
45,351
|
|
|
706
|
|
|
1.6
|
%
|
||
Sales at company-owned restaurants
|
4,736
|
|
|
6,240
|
|
|
(1,504
|
)
|
|
(24.1
|
)%
|
|
11,052
|
|
|
12,011
|
|
|
(959
|
)
|
|
(8.0
|
)%
|
||
Other revenues
|
423
|
|
|
742
|
|
|
(319
|
)
|
|
(43.0
|
)%
|
|
3,243
|
|
|
1,842
|
|
|
1,401
|
|
|
76.1
|
%
|
||
Total revenues
|
$
|
136,450
|
|
|
128,672
|
|
|
7,778
|
|
|
6.0
|
%
|
|
$
|
261,669
|
|
|
248,306
|
|
|
13,363
|
|
|
5.4
|
%
|
Segment profit
|
$
|
100,981
|
|
|
91,302
|
|
|
9,679
|
|
|
10.6
|
%
|
|
$
|
190,813
|
|
|
174,857
|
|
|
15,956
|
|
|
9.1
|
%
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
Increase (Decrease)
|
|
June 28, 2014
|
|
June 29, 2013
|
|
Increase (Decrease)
|
||||||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||
Royalty income
|
$
|
3,859
|
|
|
3,535
|
|
|
324
|
|
|
9.2
|
%
|
|
$
|
7,554
|
|
|
7,028
|
|
|
526
|
|
|
7.5
|
%
|
Franchise fees
|
635
|
|
|
342
|
|
|
293
|
|
|
85.7
|
%
|
|
1,194
|
|
|
1,047
|
|
|
147
|
|
|
14.0
|
%
|
||
Rental income
|
49
|
|
|
31
|
|
|
18
|
|
|
58.1
|
%
|
|
84
|
|
|
59
|
|
|
25
|
|
|
42.4
|
%
|
||
Other revenues
|
(22
|
)
|
|
23
|
|
|
(45
|
)
|
|
n/m
|
|
|
(26
|
)
|
|
420
|
|
|
(446
|
)
|
|
n/m
|
|
||
Total revenues
|
$
|
4,521
|
|
|
3,931
|
|
|
590
|
|
|
15.0
|
%
|
|
$
|
8,806
|
|
|
8,554
|
|
|
252
|
|
|
2.9
|
%
|
Segment profit
|
$
|
3,015
|
|
|
1,581
|
|
|
1,434
|
|
|
90.7
|
%
|
|
$
|
5,872
|
|
|
4,133
|
|
|
1,739
|
|
|
42.1
|
%
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
Increase (Decrease)
|
|
June 28, 2014
|
|
June 29, 2013
|
|
Increase (Decrease)
|
||||||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||
Royalty income
|
$
|
8,410
|
|
|
8,174
|
|
|
236
|
|
|
2.9
|
%
|
|
$
|
13,934
|
|
|
13,556
|
|
|
378
|
|
|
2.8
|
%
|
Franchise fees
|
222
|
|
|
203
|
|
|
19
|
|
|
9.4
|
%
|
|
397
|
|
|
472
|
|
|
(75
|
)
|
|
(15.9
|
)%
|
||
Rental income
|
814
|
|
|
820
|
|
|
(6
|
)
|
|
(0.7
|
)%
|
|
1,640
|
|
|
1,752
|
|
|
(112
|
)
|
|
(6.4
|
)%
|
||
Sales of ice cream products
|
1,104
|
|
|
1,087
|
|
|
17
|
|
|
1.6
|
%
|
|
2,040
|
|
|
2,048
|
|
|
(8
|
)
|
|
(0.4
|
)%
|
||
Other revenues
|
2,402
|
|
|
2,205
|
|
|
197
|
|
|
8.9
|
%
|
|
4,062
|
|
|
4,273
|
|
|
(211
|
)
|
|
(4.9
|
)%
|
||
Total revenues
|
$
|
12,952
|
|
|
12,489
|
|
|
463
|
|
|
3.7
|
%
|
|
$
|
22,073
|
|
|
22,101
|
|
|
(28
|
)
|
|
(0.1
|
)%
|
Segment profit
|
$
|
9,315
|
|
|
7,856
|
|
|
1,459
|
|
|
18.6
|
%
|
|
$
|
14,183
|
|
|
13,449
|
|
|
734
|
|
|
5.5
|
%
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||||
|
June 28,
2014 |
|
June 29,
2013 |
|
Increase (Decrease)
|
|
June 28, 2014
|
|
June 29, 2013
|
|
Increase (Decrease)
|
||||||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||||||||
|
(In thousands, except percentages)
|
||||||||||||||||||||||||
Royalty income
|
$
|
2,213
|
|
|
2,591
|
|
|
(378
|
)
|
|
(14.6
|
)%
|
|
$
|
3,956
|
|
|
4,856
|
|
|
(900
|
)
|
|
(18.5
|
)%
|
Franchise fees
|
248
|
|
|
301
|
|
|
(53
|
)
|
|
(17.6
|
)%
|
|
627
|
|
|
498
|
|
|
129
|
|
|
25.9
|
%
|
||
Rental income
|
139
|
|
|
142
|
|
|
(3
|
)
|
|
(2.1
|
)%
|
|
257
|
|
|
288
|
|
|
(31
|
)
|
|
(10.8
|
)%
|
||
Sales of ice cream products
|
30,902
|
|
|
31,722
|
|
|
(820
|
)
|
|
(2.6
|
)%
|
|
58,580
|
|
|
54,341
|
|
|
4,239
|
|
|
7.8
|
%
|
||
Other revenues
|
129
|
|
|
161
|
|
|
(32
|
)
|
|
(19.9
|
)%
|
|
222
|
|
|
362
|
|
|
(140
|
)
|
|
(38.7
|
)%
|
||
Total revenues
|
$
|
33,631
|
|
|
34,917
|
|
|
(1,286
|
)
|
|
(3.7
|
)%
|
|
$
|
63,642
|
|
|
60,345
|
|
|
3,297
|
|
|
5.5
|
%
|
Segment profit
|
$
|
11,724
|
|
|
19,411
|
|
|
(7,687
|
)
|
|
(39.6
|
)%
|
|
$
|
21,223
|
|
|
28,709
|
|
|
(7,486
|
)
|
|
(26.1
|
)%
|
|
Six months ended
|
|||||
|
June 28, 2014
|
|
June 29, 2013
|
|||
Net cash provided by operating activities
|
$
|
59,671
|
|
|
9,557
|
|
Plus: Decrease in cash held for advertising funds and reserved for gift card/certificate programs
|
28,384
|
|
|
33,173
|
|
|
Less: Net cash provided by (used in) investing activities
|
685
|
|
|
(6,829
|
)
|
|
Free cash flow, excluding cash held for advertising funds and gift card/certificate programs
|
$
|
88,740
|
|
|
35,901
|
|
|
Twelve months ended
|
||
|
June 28, 2014
|
||
Net income including noncontrolling interests
|
$
|
150,732
|
|
Interest expense
|
74,281
|
|
|
Income tax expense
|
82,033
|
|
|
Depreciation and amortization
|
47,481
|
|
|
Impairment charges
|
1,727
|
|
|
EBITDA
|
356,254
|
|
|
Adjustments:
|
|
||
Non-cash adjustments
(a)
|
10,405
|
|
|
Loss on debt extinguishment and refinancing transactions
(b)
|
13,735
|
|
|
Other
(c)
|
4,001
|
|
|
Total adjustments
|
28,141
|
|
|
Adjusted EBITDA
|
$
|
384,395
|
|
(a)
|
Represents non-cash adjustments, including stock compensation expense, legal reserves, and other non-cash gains and losses.
|
(b)
|
Represents transaction costs associated with the refinancing and repayment of long-term debt, including fees paid to third parties and the write-off of deferred financing costs and original issue discount.
|
(c)
|
Represents costs and fees associated with various franchisee-related investments, bank fees, severance, as well as the net impact of other insignificant adjustments.
|
|
|
Issuer Purchases of Equity Securities
|
||||||||||||
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(a)
|
|
Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs
(a)
|
||||||
03/30/2014 - 04/26/2014
|
|
260,000
|
|
|
$
|
47.92
|
|
|
260,000
|
|
|
$
|
110,591,422
|
|
04/27/2014 - 05/31/2014
|
|
1,000,000
|
|
|
44.58
|
|
|
1,000,000
|
|
|
66,014,547
|
|
||
06/01/2014 - 06/28/2014
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,014,547
|
|
||
Total
|
|
1,260,000
|
|
|
$
|
45.27
|
|
|
1,260,000
|
|
|
|
|
|
|
10.1
|
|
Dunkin
’
Brands Group, Inc. Annual Management Incentive Plan
|
|
|
|
31.1
|
|
Principal Executive Officer Certification Pursuant to Securities Exchange Act Rules 13a-14 and 15d-14 as Adopted Pursuant to the Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
31.2
|
|
Principal Financial Officer Certification Pursuant to Securities Exchange Act Rules 13a-14 and 15d-14 as Adopted Pursuant to the Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.1
|
|
Principal Executive Officer Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.2
|
|
Principal Financial Officer Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
||
Ex. 101.INS* XBRL Instance Document
|
||
|
||
Ex. 101.SCH* XBRL Taxonomy Extension Schema Document
|
||
|
||
Ex. 101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document
|
||
|
||
Ex. 101.LAB* XBRL Taxonomy Extension Label Linkbase Document
|
||
|
||
Ex. 101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document
|
||
|
||
Ex. 101.DEF* XBRL Taxonomy Extension Definition Linkbase Document
|
*
|
In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall be deemed to be “furnished” and not “filed.”
|
|
|
|
|
|
|
Date:
|
August 6, 2014
|
|
By:
|
|
/s/ Nigel Travis
|
|
|
|
|
|
Nigel Travis,
Chairman and Chief Executive Officer
|
1 Year Dunkin Brands Chart |
1 Month Dunkin Brands Chart |
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