Baskin Robbins 2011 Annual Report Download - page 52

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Approximately 63% of our revenue for fiscal year 2011 was derived from royalty income and franchise fees.
Sales of ice cream products to Baskin-Robbins franchisees in certain international markets accounted for 16% of
our revenue for fiscal year 2011. An additional 15% of our revenue for fiscal year 2011 was generated from
rental income from franchisees that lease or sublease their properties from us. The balance of our revenue for
fiscal year 2011 consisted of license fees on products sold in non-franchised outlets, license fees on sales of ice
cream products to Baskin-Robbins franchisees in the U.S., refranchising gains, transfer fees from franchisees,
revenue from our company-owned restaurants, and online training fees.
Franchisees fund the vast majority of the cost of new restaurant development. As a result, we are able to grow
our system with lower capital requirements than many of our competitors. With only 31 company-owned points
of distribution as of December 31, 2011, we are less affected by store-level costs, profitability and fluctuations in
commodity costs than other QSR operators.
Our franchisees fund substantially all of the advertising that supports both brands. Those advertising funds also
fund the cost of our marketing personnel. Royalty payments and advertising fund contributions typically are
made on a weekly basis for restaurants in the U.S., which limits our working capital needs. For fiscal year 2011,
franchisee contributions to the U.S. advertising funds were $316.3 million.
We operate and report financial information on a 52- or 53-week year on a 13-week quarter (or 14-week fourth
quarter, when applicable) basis with the fiscal year ending on the last Saturday in December and fiscal quarters
ending on the 13th Saturday of each quarter (or 14th Saturday of the fourth quarter, when applicable). The data
periods contained within fiscal years 2011, 2010, and 2009 reflect the results of operations for the 53-week,
52-week, and 52-week periods ending on December 31, 2011, December 25, 2010, and December 26, 2009,
respectively. Certain financial measures and other metrics have been presented with the impact of the additional
week on the results for fiscal year 2011. The impact of the additional week in fiscal year 2011 reflects our
estimate of the 53rd week on systemwide sales growth, revenues, and expenses.
Selected operating and financial highlights
Fiscal year
2009 2010 2011
Systemwide sales growth ......................... 4.1% 6.7% 9.1%
Comparable store sales growth (U.S. only):
Dunkin’ Donuts U.S. ........................ (1.3)% 2.3% 5.1%
Baskin-Robbins U.S. ........................ (6.0)% (5.2)% 0.5%
Total revenues ................................. $538,073 577,135 628,198
Operating income ............................... 184,545 193,525 205,309
Adjusted operating income ........................ 229,056 233,067 270,740
Net income .................................... 35,008 26,861 34,442
Adjusted net income ............................. 59,504 87,759 101,744
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