Dunkin' Donuts 2015 Annual Report Download - page 44

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calculation, whereas previously reported figures included only those restaurants that were open at least 54 weeks (approximately 12
months).
Adjusted operating income and adjusted net income are non-GAAP measures reflecting operating income and net income
adjusted for amortization of intangible assets, long-lived asset impairments, impairments of investments in joint ventures, and
other non-recurring, infrequent, or unusual charges, net of the tax impact of such adjustments in the case of adjusted net
income. The Company uses adjusted operating income and adjusted net income as key performance measures for the purpose
of evaluating performance internally. We also believe adjusted operating income and adjusted net income provide our investors
with useful information regarding our historical operating results. These non-GAAP measurements are not intended to replace
the presentation of our financial results in accordance with GAAP. Use of the terms adjusted operating income and adjusted net
income may differ from similar measures reported by other companies. See note 7 to “Selected Financial Data” for
reconciliations of operating income and net income determined under GAAP to adjusted operating income and adjusted net
income, respectively.
Fiscal year 2015 compared to fiscal year 2014
Overall growth in systemwide sales of 4.1% for fiscal year 2015, resulted from the following:
• Dunkin’ Donuts U.S. systemwide sales growth of 6.2%, which was the result of 349 net new restaurants opened in
fiscal year 2015 and comparable store sales growth of 1.4%. The increase in comparable store sales was driven by an
increase in average ticket, which was favorably impacted by pricing and unfavorably impacted by product mix, offset
by a decline in traffic. The growth in average ticket was led by sales of beverages, including iced coffee and espresso,
and donuts. In-restaurant K-Cup® sales had a negative impact on comparable store sales.
• Dunkin’ Donuts International systemwide sales decline of 3.3% as a result of sales decreases in South Korea and
Colombia, offset by sales increases in the Middle East, Asia, and Europe. Sales in South Korea, Europe, South
America, and Asia were negatively impacted by unfavorable foreign exchange rates. On a constant currency basis,
systemwide sales for fiscal year 2015 increased by approximately 5%. Dunkin’ Donuts International comparable store
sales increased 0.5% driven primarily by increases in Asia, South America, and the Middle East, offset by declines in
Europe and South Korea.
• Baskin-Robbins U.S. systemwide sales growth of 7.3% resulting primarily from comparable store sales growth of
6.1%. Baskin-Robbins U.S. comparable store sales growth was driven by increased sales of cups and cones,
beverages, desserts, and sundaes, as well as increased sales of cakes stimulated by strong year-over-year growth of
online cake ordering. Comparable store sales growth was driven by increases in both traffic and ticket.
• Baskin-Robbins International systemwide sales decline of 5.0%, driven by sales declines in Japan, South Korea,
Europe, and Puerto Rico, offset by sales growth in the Middle East and Asia. Sales in all regions were negatively
impacted by unfavorable foreign exchange rates, most notably Japan and South Korea. On a constant currency basis,
systemwide sales for fiscal year 2015 increased by approximately 4%. Baskin-Robbins International comparable store
sales declined 1.9% driven primarily by declines in Japan and South Korea, offset by growth in the Middle East.