Dunkin' Donuts 2012 Annual Report Download - page 51

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-41-
Dunkin’ Donuts International
Fiscal year Increase (Decrease)
2011 2010 $ %
(In thousands, except percentages)
Royalty income $ 12,657 11,353 1,304 11.5 %
Franchise fees 2,294 2,438 (144) (5.9)%
Rental income 258 303 (45) (14.9)%
Other revenues 44 34 10 29.4 %
Total revenues $ 15,253 14,128 1,125 8.0 %
Segment profit $ 11,528 14,573 (3,045) (20.9)%
The increase in Dunkin’ Donuts International revenue for fiscal year 2011 resulted primarily from an increase in royalty income
of $1.3 million driven by the increase in systemwide sales, slightly offset by a decrease of $0.1 million in franchise fees driven
by fewer store openings.
The decrease in Dunkin’ Donuts International segment profit for fiscal year 2011 was primarily driven by a decline in income
from the South Korea joint venture of $3.1 million, as well as increases in personnel costs and travel of $0.9 million. These
declines in segment profit were offset by the increase in total revenues.
Baskin-Robbins U.S.
Fiscal year Increase (Decrease)
2011 2010 $ %
(In thousands, except percentages)
Royalty income $ 25,177 25,039 138 0.6 %
Franchise fees 1,271 1,709 (438) (25.6)%
Rental income 4,544 4,842 (298) (6.2)%
Sales of ice cream products 3,780 4,027 (247) (6.1)%
Sales at company-owned restaurants 390 380 10 2.6 %
Other revenues 8,293 8,804 (511) (5.8)%
Total revenues $ 43,455 44,801 (1,346) (3.0)%
Segment profit $ 21,593 28,446 (6,853) (24.1)%
The decline in Baskin-Robbins U.S. revenue for fiscal year 2011 primarily resulted from a decline in other revenues of $0.5
million due to a decrease in licensing income related to the sale of Baskin-Robbins ice cream products to franchisees.
Additionally, franchise fees declined $0.4 million driven by fewer store openings, and rental income declined $0.3 million due
to a reduction in the number of leased locations. Approximately $0.3 million of the increase in total revenues was attributable
to the extra week in fiscal year 2011.
Baskin-Robbins U.S. segment profit for fiscal year 2011 declined as a result of increased other general and administrative
expenses of $4.5 million primarily related to the roll-out of a new point-of-sale system for Baskin-Robbins franchisees, as well
as additional contributions to the Baskin-Robbins advertising fund to support national brand-building advertising. In addition to
the declines in revenues, segment profit also declined due to increased personnel costs and travel of $1.2 million.