Written by StockNews.com

Dunkin Brands Group Inc. (NASDAQ: DNKN) early Thursday posted mixed first quarter earnings results and backed its full-year outlook, as comparable sales stayed consistent from the year-ago period.

The Canton, MA-based quick service restaurant franchisor reported Q1:

• adjusted EPS of $0.54, which was $0.06 better than the Wall Street consensus estimate of $0.48. It’s worth noting that this quarter’s result included a $0.06 benefit from an accounting change, however.
• Revenues rose 0.5% from last year to $190.7 million, missing analysts view for $192.36 million...
• U.S. comparable store sales (comps) in the first quarter were flat from last year, with higher average ticket prices offset by lower store traffic. Baskin-Robbins U.S. comps declined in Q1, also hurt by lower traffic.

DNKN added 56 net new Dunkin’ Donuts and 1 net new Baskin-Robbins location in the U.S. in the latest period, while closing 28 international locations.

Looking ahead, Dunkin’:

• reiterated its full-year EPS outlook $2.40 to $2.43, which may not compare to Wall Street’s consensus view of $2.38 due to some new accounting measures...[and]
• expects low single digit comps growth for Dunkin’ Donuts U.S. and Baskin-Robbins U.S. locations.

Nigel Travis, Dunkin’ Brands Chairman and CEO, commented via press release:

“In the first quarter of 2017, we achieved mid-single digit operating income growth and double-digit earnings per share growth.

While our Dunkin’ Donuts U.S. comparable stores sales were flat in the quarter, these results, delivered against an increasingly-challenging environment for retail and restaurants, demonstrate the benefits of our asset-light, 100-percent franchised business model.

Going forward, we will continue to execute against our six-part strategy designed to drive growth and long-term competitive differentiation by positioning Dunkin’ as a beverage-led, to-go brand.

Our goal is to ensure that Dunkin’ is a place of positive transition in our guests’ lives, the place that energizes them and sends them on their way to make the most of their day.”

...Year-to-date, DNKN has gained 8.12%, versus a 7.15% rise in the benchmark S&P 500 index during the same period.

DNKN currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #9 of 53 stocks in the Restaurants category.