Baskin Robbins 2013 Annual Report Download - page 43

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Adjusted net income increased $16.1 million, or 10.7%, for fiscal year 2013 resulting primarily from a $33.2 million increase
in adjusted operating income, offset by an $8.9 million increase in income tax expense, and the $6.3 million increase in net
interest expense.
Fiscal year 2012 compared to fiscal year 2011
Overall growth in systemwide sales of 5.2% for fiscal year 2012, or 7.0% on a 52-week basis, resulted from the following:
• Dunkin’ Donuts U.S. systemwide sales growth of 5.6%, which was the result of comparable store sales growth of
4.2% driven by both increased average ticket and transaction counts, as well as net development of 291 restaurants in
2012, offset by approximately 190 basis points of a decline attributable to the extra week in fiscal year 2011. Increases
in average ticket and transactions resulted from our continued focus on product and marketing innovation resulting in
strong beverage sales growth, especially in cold beverages, strong breakfast sandwich sales across both core and
limited-time offerings, continued growth in bakery sandwiches, and sales of Dunkin' Donuts K-Cup® portion packs
including successful limited-time offerings.
• Dunkin’ Donuts International systemwide sales growth of 4.2% as a result of sales increases in the Middle East and
Southeast Asia driven by net new restaurant development and comparable store sales growth of 2.0%, offset by an
unfavorable foreign currency impact.
• Baskin-Robbins U.S. systemwide sales growth of 1.5% resulting primarily from comparable store sales growth of
3.8%, offset by approximately 140 basis points of a decline attributable to the extra week in fiscal year 2011, as well
as 30 net restaurant closures during 2012. Baskin-Robbins U.S. comparable store sales growth was driven by new
product news and signature Flavors of the Month, custom cake sales, and new beverages.
• Baskin-Robbins International systemwide sales growth of 5.5% resulting from increased sales in South Korea and
Japan, which resulted from both comparable store sales growth and net development. Offsetting this growth was
approximately 170 basis points of a decline attributable to the extra week in fiscal year 2011, as well as an unfavorable
foreign currency impact.
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 29, 2012 and December 31, 2011 were as follows:
December 29, 2012 December 31, 2011
Points of distribution, at period end:
Dunkin’ Donuts U.S. 7,306 7,015
Dunkin’ Donuts International 3,043 2,871
Baskin-Robbins U.S. 2,463 2,493
Baskin-Robbins International 4,556 4,217
Consolidated global points of distribution 17,368 16,596
Fiscal year ended
December 29, 2012 December 31, 2011
Net openings (closings), during the period:
Dunkin’ Donuts U.S. 291 243
Dunkin’ Donuts International 172 80
Baskin-Robbins U.S. (30)(90)
Baskin-Robbins International 339 368
Consolidated global net openings 772 601
The increase in total revenues of $30.0 million, or 4.8%, for fiscal year 2012 primarily resulted from a $20.5 million increase in
franchise fees and royalty income driven by the increase in Dunkin’ Donuts U.S. systemwide sales, a $10.8 million increase in
sales at company-owned restaurants due to additional locations acquired, and a $4.7 million increase in rental income. The
overall $30.0 million growth in revenues reflects the unfavorable impact of the extra week in fiscal year 2011, which
contributed approximately $8.0 million of incremental revenue in the prior year consisting primarily of additional royalty
income and sales of ice cream products. Sales of ice cream products were also unfavorably impacted by approximately $5.8
million in the fourth quarter of 2012 from a one-time delay in revenue recognition as a result of a change in shipping terms
related to the shift in ice cream manufacturing to Dean Foods.