Dunkin' Donuts 2015 Annual Report Download - page 45

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-35-
Changes in systemwide sales are impacted, in part, by changes in the number of points of distribution. Points of distribution
and net openings as of and for the fiscal years ended December 26, 2015 and December 27, 2014 were as follows:
December 26, 2015 December 27, 2014
Points of distribution, at period end:
Dunkin’ Donuts U.S. 8,431 8,082
Dunkin’ Donuts International 3,319 3,228
Baskin-Robbins U.S. 2,503 2,484
Baskin-Robbins International 5,104 5,068
Consolidated global points of distribution 19,357 18,862
Fiscal year ended
December 26, 2015 December 27, 2014
Net openings, during the period:
Dunkin’ Donuts U.S.(1) 349 405
Dunkin’ Donuts International 91 47
Baskin-Robbins U.S. 19 17
Baskin-Robbins International 36 235
Consolidated global net openings 495 704
(1) Net openings for Dunkin' Donuts U.S. for fiscal year 2015 reflect the previously-announced closing of 81 self-serve coffee stations
within Speedway locations.
The increase in total revenues of $62.2 million, or 8.3%, for fiscal year 2015 resulted primarily from a $30.9 million increase in
franchise fees and royalty income driven by the increase in Dunkin’ Donuts U.S. systemwide sales and additional franchise fees
due to favorable development mix and additional gross development, and an increase in other revenues of $24.7 million, due
primarily to licensing fees earned from the Dunkin’ K-Cup® pod licensing agreement. Also contributing to the increase in
revenues for fiscal year 2015 was an increase in sales at company-operated restaurants of $6.1 million, driven by a net increase
in the number of company-operated restaurants.
Operating income decreased $19.3 million, or 5.7%, for fiscal year 2015 driven by a $54.3 million impairment of our
investment in the Japan joint venture ("Japan JV"), an increase in general and administrative expenses driven primarily by
incremental incentive compensation accruals, an increase in share-based compensation, and costs incurred related to the final
settlement of our Canadian pension plan as a result of the closure of our Canadian ice cream manufacturing plant in fiscal year
2012. Also contributing to the decrease in operating income was a decrease in other operating income due to the timing of the
sale of real estate and a gain recognized in the prior year in connection with the sale of company-operated restaurants in the
Atlanta market. These items were offset by the increase in franchise fees and royalty income, licensing fees earned from the
sale of Dunkin’ K-Cup® pods, and an increase in ice cream margin.
Adjusted operating income increased $34.5 million, or 9.4%, for fiscal year 2015 driven by the increases in franchise fees and
royalty income, licensing fees earned from the Dunkin’ K-Cup® pod licensing agreement, and ice cream margin. The increases
in revenues and ice cream margin were offset by an increase in general and administrative expenses, net, driven primarily by
incremental incentive compensation accruals and share-based compensation, and a decrease in other operating income due to
the timing of the sale of real estate and a gain recognized in the prior year in connection with the sale of company-operated
restaurants in the Atlanta market.
Net income attributable to Dunkin’ Brands decreased $71.1 million, or 40.3%, for fiscal year 2015 as a result of the $19.3
million decrease in operating income, a $28.5 million increase in net interest expense driven by additional borrowings incurred
in conjunction with the securitization refinancing transaction completed during January 2015, a $16.2 million increase in
income tax expense as the prior year was favorably impacted by tax benefits resulting from a restructuring of our Canadian
subsidiaries, and a $6.8 million increase in loss on debt extinguishment and refinancing transactions.
Adjusted net income increased $1.8 million, or 1.0%, for fiscal year 2015 resulting primarily from a $34.5 million increase in
adjusted operating income, offset by the $28.5 million increase in net interest expense and a $3.9 million increase in income tax
expense.