Dunkin' Brands Group, Inc.(NASDAQ:DNKN) saw its share ease in premarket trade despite posting fourth quarter numbers that beat market expectations.
In a statement, the company said net income in the fourth quarter came in at US$195.5mln or US$2.13 a share.
READ: Dunkin' Brands Group shares dip in pre-market as third quarter earnings miss
Excluding the benefit of the new tax law and other one-time items, the company earned 64 US cents a share, beating Wall Street expectations for 63 US cents a share.
During the quarter, revenue rose to US$227.1mln, up 5.3% from the previous year, and above market expectations for US$220.6mln.
It said same-store sales rose 0.8% at Dunkin' Donuts U.S. locations, led by increased morning sales and sales of iced coffee and Frozen Dunkin Coffee, and in line with what the market had pencilled in.
Dividend hiked
Same-store sales at Baskin-Robbins recorded a 5.1% hike, above the 0.2% expected by the market, as customers spent more per ticket and bought more shakes, smoothies and Cappuccino Blasts.
Dunkin recorded a tax benefit of US$143.4mln due to the re-measurement of deferred tax liabilities following the new U.S. tax law, which it expects to be "favorable to the majority of our franchisees as well as net beneficial to Dunkin' Brands."
During the quarter, a total of 126 new U.S. Dunkin' Donuts stores and 40 new international Baskin-Robbins locations were opened.
However, it closed 23 Dunkin' Donuts International locations and two Baskin-Robbins U.S. locations.
Dunkin hiked its dividend payout by 7.75% to 3.475 US cents per share.
"We're pleased to have delivered our revenue, operating income, and earnings per share targets for 2017, and look forward to sharing our growth targets for 2018 and beyond at our upcoming investor day on February 8 in Boston," said Kate Jaspon, Dunkin' Brands Chief Financial Officer.
In pre-market trade, its shares eased 1.38% at US$60.00.