Baskin Robbins 2015 Annual Report Download - page 46

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-36-
Fiscal year 2014 compared to fiscal year 2013
Overall growth in systemwide sales of 5.1% for fiscal year 2014, resulted from the following:
• Dunkin’ Donuts U.S. systemwide sales growth of 6.4%, which was the result of comparable store sales growth of
1.7% driven by both increased average ticket and transaction counts, as well as net development of 405 restaurants in
2014. The increase in average ticket was driven by an increase in units per transaction.
• Dunkin’ Donuts International systemwide sales growth of 2.7% as a result of sales increases in the Middle East and
Europe driven primarily by net new restaurant development, offset by a decline in systemwide sales in South Korea
net of favorable foreign exchange rates. Dunkin’ Donuts International comparable store sales declined 2.0% driven
primarily by a decline in South Korea, offset by growth in the Middle East.
• Baskin-Robbins U.S. systemwide sales growth of 5.9% resulting primarily from comparable store sales growth of
4.9%. Baskin-Robbins U.S. comparable store sales growth was driven by increased sales of cups and cones, desserts,
beverages, and take-home ice cream quarts. Additionally, online cake ordering continued to drive cake category
growth.
• Baskin-Robbins International systemwide sales decline of 0.7% resulting from decreased sales in Japan, which
resulted from both unfavorable foreign exchange rates as well as a decline in comparable store sales, and a decline in
sales to the U.S. military in Afghanistan. Offsetting these decreases was an increase in systemwide sales in South
Korea driven by favorable foreign exchange rates, net new restaurant development, and comparable store sales
growth. Baskin-Robbins International comparable store sales declined 1.2% driven primarily by the decline in Japan,
offset by growth in South Korea and the Middle East.
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 27, 2014 and December 28, 2013 were as follows:
December 27, 2014 December 28, 2013
Points of distribution, at period end:
Dunkin’ Donuts U.S. 8,082 7,677
Dunkin’ Donuts International 3,228 3,181
Baskin-Robbins U.S. 2,484 2,467
Baskin-Robbins International 5,068 4,833
Consolidated global points of distribution 18,862 18,158
Fiscal year ended
December 27, 2014 December 28, 2013
Net openings, during the period:
Dunkin’ Donuts U.S. 405 371
Dunkin’ Donuts International 47 138
Baskin-Robbins U.S. 17 4
Baskin-Robbins International 235 277
Consolidated global net openings 704 790
The increase in total revenues of $34.9 million, or 4.9%, for fiscal year 2014 resulted primarily from a $28.4 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. Additionally, sales of ice cream and other products
increased by $5.2 million due primarily to additional sales of ice cream and other products in the Middle East and Europe,
offset by a decline in sales to our Australian joint venture, due primarily to the sale of all ice cream and other products
inventory on hand in fiscal year 2013 in conjunction with the sale of 80% of our Baskin-Robbins Australia business.
Operating income and adjusted operating income increased $34.1 million, or 11.2%, and $25.6 million, or 7.5%, respectively,
for fiscal year 2014 driven by the $28.4 million increase in franchise fees and royalty income. Also contributing to the increases
in operating and adjusted operating income were gains recognized in connection with the sale of real estate and a gain
recognized in connection with the sale of all company-operated restaurants in the Atlanta market in fiscal year 2014. These
increases were offset by a $6.3 million gain related to the sale of 80% of our Baskin-Robbins Australia business recorded in
fiscal year 2013, additional breakage income, net of gift card program costs, of $5.4 million on unredeemed Dunkin’ Donuts