Sales for this year at established shops of Dunkin’ Brands in the U.S. will be weaker than have been earlier forecasted according to a statement from Dunkin’ Brands Group.
Battling with tight competition, the Dunkin’ Brands cut back it is 2014 sales forecasts in July while the more expensive milk prices weakened the profits of its international ice cream business Baskin-Robbins.
Even with the weaker-than-expected sales trends, the company stood by its projected earnings by going up from $1.73 to $1.77 per share.
The executives are not worried and they said that the donut maker is in a good position to survive the unpredictability in the commodity coffee market.
For this latest quarter of the year, the company’s profit went up and exceeded the expectations of analysts by 36% which equals to $0.52 per share or $54.7 million. Taking away special items, the Dunkin’ Donut’s earning came in at $0.49 per share which is higher than the estimates of Wall Street.
The revenue earned by the company at the end of the third quarter totaled $192.5 million.
The established sales of U.S. Dunkin’ Donuts rose 2% in the 3rd quarter which is lower than what’s expected but it still is better than the drop of the sales for McDonald’s U.S. unit by 3.3%.
Nigel Travis, the Chairman and CEO of Dunkin’ Donuts Brands said that the company is growing share and the increased the brand’s long-term target of shops in the U.S. from 15,000 to the new 17,000 target.