Dunkin' Tops Earnings Estimates in Q2

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July 25 (Bloomberg) -- Dunkin' Brands CEO Nigel Travis discusses Dunkin' earnings with Pimm Fox, revealing the company's plans for the next couple of months. He speaks on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Give us a review of what is going on at dunkin' brands.

How are same-store sales doing in the united states?

Dunkin' donuts was up 4%. asking him and his was up 1.6%. -- baskin-robbins was up 1.6%. we opened 53 stores on the duncan side -- dunkin' side and five stores on the baskin side.

We feel very good about the u.s., both businesses.

Tell us about the expansion plans you have for dunkin' brands.

Even though everyone talks about california, and we have exciting news that we have signed four new franchisees to open 45 stores in california over time, that will not happen until 2015. we think our store growth plans are going very nicely.

We have given guidance this year on the duncan side between 330 and 360. most of that growth will come east of the mississippi, about 17% in core areas.

Most of the rest will be split between are established and emerging areas, most of which is in the midwest and south.

Could you describe for people the difference between royalty payments as compared to the payments you receive from franchisees for rent and things like that?


If i take the u.s., when we set up a franchise, the franchisees pay fees for opening the store.

There are opening fees.

Then the royalties are a percent of the sales.

We get a royalty , which in the u.s. are standard rate is 5.9%, a good royalty, a competitive royalty but on the higher end of the scale.

Internationally it is a little but lower.

-- bit lower.

We take real estate fees and that is on a percentage basis as well.

One thing people always struggle with, we have systemwide sales of about $9 billion annually.

But our royalties and fees come to somewhere around $700 million.

We are a large company on systemwide sales and a small company when it comes to royalties.

We are about driving franchise profitability.

If we do that well, we grow more stores and more royalties and fees.

What about new, seasonal products?

You introduced new products related to the birth of the baby boy to the duchess and duke of cambridge in england.

That is an exciting event.

This is the royal munchkin.

You can buy them at all dunkin' donuts in the u.s. it is a cake doughnut.

Pink, blue, and white spreckels.

On the baskin robbins aside we a special baby shower cake.

In the uk we bought out a cake with the same weight in price as the baby was, eight pounds, six.

One of the things we like to think about is, we have a great custom about -- they're usually people on the go, people on the move, and people who are down to earth.

The fact that we don't take ourselves too seriously is an important part of what makes us a great company.

Can you tell us about trends in hiring and whether you are looking for more part-time or fourth full-time help -- full- time help?

It differs.

We have franchisees that we do a great job supporting.

We had a board meeting today, talking about how the service has improved.

Our crunch is really focused on training full-time help.

They bring in seasonal and part- time workers.

I calculated recently that in the u.s. a year, given our current growth plans, we are bringing in 7000 employees and something like 20% to 30% of those will be full timers.

Thanks very much, nigel travis, chief executive of

This text has been automatically generated. It may not be 100% accurate.


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