Dunkin’ brands tumbles as annual forecast misses estimates

NEW YORK – Dunkin’ Brands Group Inc., owner of the Dunkin’ Donuts and Baskin-Robbins chains, fell the most since 2011 after the company’s annual forecast missed estimates.

Dunkin’ shares tumbled 6.9 percent to $43.05 at the close in New York on Thursday, for the biggest decline since November 2011. The stock began trading in July of that year. The shares are down 11 percent this year.

The Canton, Mass.-based company is suffering from sluggish sales of packaged coffee and slow consumer spending. Its joint ventures in South Korea and Japan also are under pressure, Dunkin’ Brands said Thursday when it released the new forecast.

“This has been a challenging year for our businesses,” Nigel Travis, Dunkin’ Brands CEO, said in a statement. “While our earnings growth expectations for 2015 are below our longer-term targets, we are committed to returning to double-digit growth in the subsequent years.”

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Dunkin’ projected 2015 earnings of $1.88 to $1.91 a share, excluding some items. Analysts had estimated $2.02 on average, according to data compiled by Bloomberg. The company expects sales growth of 5 percent to 7 percent, compared with an analyst prediction of 7 percent.

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