CANTON, Mass. (AP) — Dunkin’ Brands Group Inc. says it expects slower sales of packaged coffee at its Dunkin’ Donuts shops and ongoing pressure on consumers to continue into next year. It also expects its joint ventures in Japan and Korea to hurt its 2015 results.
As a result, the company lowered its fiscal 2015 forecast for a key sales metric. Its shares skidded almost 8 percent in afternoon trading.
Dunkin’ Brands now foresees 2015 sales at Dunkin’ Donuts locations in the U.S. open at least a year will climb 1 percent to 3 percent.
Its previous outlook for Dunkin’ Donuts was for a 2 percent to 4 percent rise in the figure.
For Baskin-Robbins, the company anticipates growth of 1 percent to 3 percent.
Dunkin’ Brands expects a fiscal 2015 adjusted profit in a range of $1.88 to $1.91 per share. It predicts revenue growth of 5 percent to 7 percent. Analysts polled by FactSet are calling for full-year earnings of $2.02 per share.
Dunkin’ Brands, which runs Dunkin’ Donuts and Baskin-Robbins, also cut its forecast for a key sales metric for fiscal 2014. The Canton, Massachusetts-based company said that it now expects sales at Dunkin’ Donuts shops in the U.S. open at least a year to rise about 1.4 percent. Its prior guidance was for an increase of 2 percent to 3 percent.
Dunkin’ Brands also narrowed its 2014 adjusted profit forecast. The chain now anticipates adjusted earnings between $1.75 and $1.76 per share. Its previous outlook was for $1.73 to $1.77 per share. Wall Street expects full-year earnings of $1.76 per share.
Dunkin’ Brands will report its fourth-quarter and fiscal 2014 financial results on Feb. 5, 2015.
Its shares fell $3.65, or 7.9 percent, to $42.57 in afternoon trading.