Dunkin' Donuts 2013 Annual Report Download - page 42

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• Dunkin’ Donuts International systemwide sales growth of 3.1% as a result of sales increases in the Middle East,
Southeast Asia, and Germany driven by net new restaurant development, offset by a decline in systemwide sales in
South Korea and a decline in comparable store sales of 0.4%.
• Baskin-Robbins U.S. systemwide sales growth of 0.7% resulting primarily from comparable store sales growth of
0.8%. Baskin-Robbins U.S. comparable store sales growth was driven by new product news and signature Flavors of
the Month, custom cake sales, and take-home ice cream quarts.
• Baskin-Robbins International systemwide sales growth of 0.4% resulting from increased sales in South Korea and the
Middle East, which resulted from both comparable store sales growth and net development. Offsetting this growth was
a decrease in systemwide sales in Japan driven by 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 28, 2013 and December 29, 2012 were as follows:
December 28, 2013 December 29, 2012
Points of distribution, at period end:
Dunkin’ Donuts U.S. 7,677 7,306
Dunkin’ Donuts International 3,181 3,043
Baskin-Robbins U.S. 2,467 2,463
Baskin-Robbins International 4,833 4,556
Consolidated global points of distribution 18,158 17,368
Fiscal year ended
December 28, 2013 December 29, 2012
Net openings (closings), during the period:
Dunkin’ Donuts U.S. 371 291
Dunkin’ Donuts International 138 172
Baskin-Robbins U.S. 4 (30)
Baskin-Robbins International 277 339
Consolidated global net openings 790 772
The increase in total revenues of $55.7 million, or 8.5%, for fiscal year 2013 resulted primarily from a $35.0 million increase in
franchise fees and royalty income driven by the increase in Dunkin’ Donuts U.S. systemwide sales and favorable development
mix. Additionally, sales of ice cream products increased by $17.6 million due primarily to additional sales of ice cream
products in the Middle East and an increase in distribution costs billed to customers, as well as a one-time delay in revenue
recognition related to the shift in manufacturing to Dean Foods that impacted fourth quarter sales of ice cream products in the
prior year.
Operating income increased $65.3 million, or 27.3%, for fiscal year 2013 driven by the $35.0 million increase in franchise fees
and royalty income, as well as a gain of $6.3 million recognized on the sale of 80% of our Baskin-Robbins Australia business.
The increase in operating income was also attributable to a $20.7 million increase in the Bertico litigation legal reserve
recorded in the prior year, as well as an unfavorable impact of approximately $14.0 million associated with the closure of our
ice cream manufacturing plant in Peterborough, Ontario, Canada in fiscal year 2012. Offsetting these increases in operating
income was a $7.5 million charge related to a third-party product volume guarantee recorded in fiscal year 2013, as well as $3.7
million in write-downs related to our investments in the Dunkin’ Donuts Spain joint venture.
Adjusted operating income increased $33.2 million, or 10.8%, for fiscal year 2013 driven by the $35.0 million increase in
franchise fees and royalty income and the $6.3 million gain recognized on the Baskin-Robbins Australia sale, offset by
additional general and administrative costs and write-downs related to our investments in the Dunkin' Donuts Spain joint
venture.
Net income attributable to Dunkin’ Brands increased $38.6 million, or 35.6%, for fiscal year 2013 as a result of the $65.3
million increase in operating income, offset by a $17.4 million increase in income tax expense driven by increased profit before
tax, and a $6.3 million increase in net interest expense due to additional term loan borrowings in August 2012.