Baskin Robbins 2015 Annual Report Download - page 50

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parties in which our brand names are used, revenue generated from online training programs for franchisees, and revenues from
the sale of Dunkin’ Donuts products in certain international markets, all of which are not allocated to a specific segment.
Dunkin’ Donuts U.S.
Fiscal year Increase (Decrease)
2015 2014 $ %
(In thousands, except percentages)
Royalty income $ 413,692 387,826 25,866 6.7%
Franchise fees 42,503 37,388 5,115 13.7%
Rental income 96,827 93,703 3,124 3.3%
Sales at company-operated restaurants 28,340 22,206 6,134 27.6%
Other revenues 9,700 7,574 2,126 28.1%
Total revenues $ 591,062 548,697 42,365 7.7%
Segment profit $ 430,068 403,591 26,477 6.6%
The increase in Dunkin’ Donuts U.S. revenues for fiscal year 2015 was driven primarily by an increase in royalty income of
$25.9 million as a result of an increase in systemwide sales, as well as an increase in sales at company-operated restaurants of
$6.1 million due to a net increase in the number of company-operated restaurants operating during the year. Also contributing
to revenue growth were increases in franchise fees of $5.1 million due to favorable development mix and additional gross
development, rental income of $3.1 million driven primarily by increases in average rent per lease, sales-based rental income,
and the number of leases, as well as an increase in other revenues of $2.1 million.
The increase in Dunkin’ Donuts U.S. segment profit for fiscal year 2015 was driven primarily by the increases in royalty
income, franchise fees, and other revenues, as well as a reduction in bad debt expense. These increases in segment profit were
offset by gains recognized in the prior fiscal year in connection with the sale of the company-operated restaurants in Atlanta
and other real estate, as well as increases in personnel and travel costs in the current year.
Dunkin’ Donuts International
Fiscal year Increase (Decrease)
2015 2014 $ %
(In thousands, except percentages)
Royalty income $ 15,658 15,383 275 1.8 %
Franchise fees 5,017 4,430 587 13.3 %
Rental income 13 110 (97) (88.2)%
Other revenues 2,285 (56) 2,341 n/m
Total revenues $ 22,973 19,867 3,106 15.6 %
Segment profit $ 12,713 12,103 610 5.0 %
The increase in Dunkin’ Donuts International revenues for fiscal year 2015 resulted primarily from an increase in other
revenues of $2.3 million due primarily to a settlement reached with a master licensee resulting in the recovery of prior period
royalty income and franchise fees, as well as increases in franchise fees of $0.6 million driven by development in new markets
and royalty income of $0.3 million.
The increase in Dunkin’ Donuts International segment profit for fiscal year 2015 was driven primarily by revenue growth,
offset by increases in general and administrative expenses, driven by increased personnel costs, investments in international
markets, and bad debt, as well as a decrease in net income from our South Korea joint venture.