Dunkin’ Brands Group Inc (NASDAQ:DNKN) announced better-than-expected first-quarter earnings on Thursday morning.
The coffee chain reported earnings of US$0.57 per share on revenue of US$301.3mln compared with US$0.48 EPS on revenue of US$296.4bn in the previous year’s first quarter.
The Massachusetts-based franchiser behind Dunkin’ Donuts and Baskin-Robbins beat Wall Street estimates of US$0.52 EPS on revenue of $301.26mln.
A total of 56 new Dunkin’ Donuts were opened in the U.S. along with some existing stores undergoing a redesign. The menu was simplified and revamped, adding items like donut fries in certain locations.
READ: Dunkin' Donuts unveils new 'donut fries' in Boston
The company benefited from several promotions in the first quarter, including discounted coffee during the afternoon lull and value menu breakfast sandwich options that led to a jump in sales.
Dunkin’ Donuts partnered with the Girl Scouts to offer cookie-flavored coffee and espresso, including Thin Mints.
Chanos sinks shares
Jim Chanos, founder of investment firm Kynikos Associates, said in an interview with CNBC’s “Squawk on the Street” that he’s shorting Dunkin’ Brands as well as Restaurant Brands International Inc (NYSE:QSR), the parent company of Burger King.
“You can’t have a situation where the boxes are struggling and the parent is prospering. That just doesn’t work over time,” said Chanos, pointing to flat to declining same-stores sales as a sign of struggle.
Shares of the company fell as low as 5% after the comments, down from a 3% rise prior to the interview.