BUSINESS
07/25/2013 06:11 am ET Updated Sep 24, 2013

Dunkin' Brands Quarterly Profit More Than Doubles

AP

* Q2 same-store sales at Dunkin' Donuts U.S. rose 4 pct

* Expands breakfast menu, launches chicken, tuna wraps

* Q2 adj earnings of 41 cents/share vs est of 40 cents/shr

* Q2 sales $182.5 mln vs est $183.1 mln

By Arpita Mukherjee

July 25 (Reuters) - Dunkin' Brands Group Inc more than doubled quarterly profit to beat Wall Street forecasts with a revamped menu that drew more customers to its Dunkin' Donuts cafes in the United States.

Same-store sales at Dunkin' Donuts U.S., which contributes about 70 percent of the company's revenue, rose 4 percent in the second quarter, compared with the 3.6 percent increase analysts polled by Consensus Metrix had expected.

Dunkin' Brands' shares were up 3 percent in thin premarket trading on Thursday.

Like its rival fast-food chains, Dunkin' has launched a range of new products. Its tuna and chicken salad wraps, as well as the nationwide rollout of its turkey sausage breakfast sandwich, drew more customers in the quarter ended June 29.

Dunkin' said in a statement that its National Donut Day promotion last month, which entitled customers to a free donut with every drink purchased, also brought in many customers.

New menu items have helped Dunkin' and some of its competitors to attract more customers. Shares of Wendy's Co hit their highest in more than five years on optimism over its new Pretzel Bacon Cheeseburger.

But McDonald's Corp, the dominant chain in the breakfast category, said on Monday that second-quarter sales at its established U.S. restaurants were up 1 percent, less than analysts had expected.

Dunkin', which also owns the Baskin-Robbins ice cream brand, said net income rose to $40.8 million, or 38 cents per share, from $18.5 million, or 15 cents per share, a year earlier.

On an adjusted basis, the company earned 41 cents per share.

Analysts on average expected the company to earn 40 cents per share, on revenue of $183.1 million in the second quarter, according to Thomson Reuters I/B/E/S.

Revenue rose 5.9 percent to $182.5 million.

Canton, Massachusetts-based Dunkin' also drew in customers with new beverages such as its Iced Coffee flavors, based on Baskin-Robbins ice cream.

Dunkin' shares closed at $42 on the Nasdaq on Wednesday.

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