Dunkin' Donuts 2011 Annual Report Download - page 64

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Operating segments
Dunkin’ Donuts U.S.
Fiscal year
2009
Fiscal year
2010
Increase (Decrease)
$ %
(In thousands, except percentages)
Royalty income .................................. $275,816 290,187 14,371 5.2%
Franchise fees ................................... 21,797 21,721 (76) (0.3)%
Rental income ................................... 87,163 85,311 (1,852) (2.1)%
Other revenues ................................... 2,486 3,118 632 25.4%
Total revenues ............................... 387,262 400,337 13,075 3.4%
Segment profit ................................... 275,961 293,132 17,171 6.2%
The increase in Dunkin’ Donuts U.S. revenue from fiscal 2009 to fiscal 2010 was driven by an increase in royalty
income of $14.4 million as a result of an increase in systemwide sales.
The increase in Dunkin’ Donuts U.S. segment profit from fiscal 2009 to fiscal 2010 was primarily driven by the
$14.4 million increase in royalty income. The increase in segment profit from fiscal 2009 to fiscal 2010 also
resulted from a decline in general and administrative expenses of $5.1 million primarily attributable to decreases
in both bad debt provisions and franchisee-related restructuring activities, offset by an increase in legal
settlements and payroll-related costs due primarily to increased incentive compensation. Additionally, higher
total occupancy expenses of $2.9 million from fiscal 2009 to fiscal 2010 resulted primarily from lease reserves
recorded.
Dunkin’ Donuts International
Fiscal year
2009
Fiscal year
2010
Increase (Decrease)
$ %
(In thousands, except percentages)
Royalty income .................................. $10,146 11,353 1,207 11.9%
Franchise fees .................................... 1,516 2,438 922 60.8%
Rental income .................................... 446 303 (143) (32.1)%
Other revenues ................................... 218 34 (184) (84.4)%
Total revenues ............................... 12,326 14,128 1,802 14.6%
Segment profit ................................... 12,628 14,573 1,945 15.4%
The increase in Dunkin’ Donuts International revenue from fiscal 2009 to fiscal 2010 resulted primarily from an
increase in royalty income of $1.2 million driven by the increase in systemwide sales. Also contributing to the
increased revenue from the prior year was an increase of $0.9 million in franchise fees driven by development in
China and Russia.
The increase in Dunkin’ Donuts International segment profit from fiscal 2009 to fiscal 2010 was primarily driven
by the increases in revenues of $1.8 million, as noted above.
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