Dunkin' Donuts 2011 Annual Report Download - page 54

• Dunkin’ Donuts International systemwide sales growth of 9.1% as a result of sales increases in South
Korea and Southeast Asia driven by net new restaurant development, comparable store sales growth,
and favorable foreign exchange;
• Baskin-Robbins U.S. systemwide sales growth of 0.4% resulting primarily from comparable store sales
growth of 0.5% and the extra week in fiscal year 2011, contributing approximately 140 basis points of
growth, offset by a slightly reduced restaurant base; and
• Baskin-Robbins International systemwide sales growth of 11.6% resulting from increased sales in
South Korea and Japan, which resulted from both sales growth and favorable foreign exchange, as well
as in the Middle East, and approximately 190 basis points of growth attributable to the extra week in
fiscal year 2011.
The increase in total revenues of $51.1 million, or 8.8%, for fiscal year 2011 primarily resulted from increased
franchise fees and royalty income of $38.5 million, driven by the increase in Dunkin’ Donuts U.S. systemwide
sales, as well as a $15.1 million increase in sales of ice cream products. Approximately $8.0 million of the
increase in total revenues was attributable to the extra week in fiscal year 2011, consisting primarily of additional
royalty income and sales of ice cream products.
Operating income increased $11.8 million, or 6.1%, for fiscal year 2011 driven by the increase in franchise fees
and royalty income noted above, as well as a $10.3 million reduction in depreciation, amortization, and
impairment charges. Offsetting these increases in operating income was an increase in general and administrative
expenses of $17.0 million driven by a $14.7 million expense related to the termination of the Sponsor
management agreement upon the Company’s initial public offering in 2011, as well as a $21.3 million reduction
in equity in net income of joint ventures driven by an impairment of the investment in the Korea joint venture.
Adjusted operating income increased $37.7 million, or 16.2%, for fiscal year 2011 driven by the increase in
franchise fees and royalty income.
Net income increased $7.6 million, or 28.2%, for fiscal year 2011 as a result of the $11.8 million increase in
operating income, a $27.7 million decrease in loss on debt extinguishment and refinancing transactions, and a
$7.8 million decrease in interest expense, offset by a $39.8 million increase in income tax expense driven by
increased profit before tax and benefits from state tax rate changes realized in the prior year.
Adjusted net income increased $14.0 million, or 15.9%, for fiscal year 2011 resulting primarily from a $37.7
million increase in adjusted operating income and a $7.8 million decrease in interest expense, offset by a $31.5
million increase in income tax expense.
Fiscal year 2010 compared to fiscal year 2009
Overall growth in systemwide sales of 6.7% for fiscal year 2010 resulted from the following:
• Dunkin’ Donuts U.S. systemwide sales growth of 4.7%, which was the result of net restaurant
development of 206 restaurants in 2010 and comparable store sales growth of 2.3% driven by both
increased transaction counts and average ticket;
• Dunkin’ Donuts International systemwide sales growth of 15.0%, which resulted from results in South
Korea and Southeast Asia driven by a combination of new restaurant development and comparable
store sales growth;
• Baskin-Robbins U.S. systemwide sales decline of 5.5% resulting from a comparable store sales decline
of 5.2% in addition to a slightly reduced restaurant base; and
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