This Oct. 31, 2011 photo, shows a display of Dunkin Donuts, in Atlanta. Dunkin' Brands Group Inc., the parent of Dunkin' Donuts and the Baskin-Robbins ice cream chain, saw net income plummet 61 percent in the July-to-September quarter, as the company paid charges related to going public and paying down debt. (AP Photo/John Bazemore)
This Oct. 31, 2011 photo, shows a display of Dunkin Donuts, in Atlanta. Dunkin' Brands Group Inc., the parent of Dunkin' Donuts and the Baskin-Robbins ice cream chain, saw net income plummet 61 percent in the July-to-September quarter, as the company paid charges related to going public and paying down debt. (AP Photo/John Bazemore)
In this Oct. 31, 2011 photo, a customer uses a laptop computer at a Dunkin' Donuts shop in Atlanta. Dunkin' Brands Group Inc., the parent of Dunkin' Donuts and the Baskin-Robbins ice cream chain, saw net income plummet 61 percent in the July-to-September quarter, as the company paid charges related to going public and paying down debt.(AP Photo/John Bazemore)
NEW YORK (AP) ? Dunkin' Brands Group Inc., the parent of Dunkin' Donuts and the Baskin-Robbins ice cream chain, said Tuesday that its net income plummeted 61 percent in the July-to-September quarter, as the company paid charges related to going public and paying down debt.
Net income fell to $7.4 million from $18.8 million. Without the one-time charges, it would have risen 32 percent to $31.3 million.
Earnings were 28 cents per share without special items, beating analysts' estimates of 25 cents, according to FactSet. Revenue grew 9 percent to $163.5 million, which also beat the Wall Street forecast of $159.3 million.
Dunkin' Brands went public in July, partly as a way to help pay down debt. It's now focused on expanding outside its home base in the Northeast U.S.
The company also said Tuesday that some of its shareholders plan to sell 22 million shares, which represent more than 18 percent of the company's total common shares. The selling stockholders are the three private-equity firms who owned Dunkin' Brands before it went public and still retain big ownership stakes: Bain Capital Partners, Carlyle Group and Thomas H. Lee Partners.
In a statement about earnings, CEO Nigel Travis focused on revenue gains. He said the third-quarter results "reflect the strength of our overall business and underscore the opportunity we have to accelerate our profitable growth in the U.S. and around the world."
Some of the revenue increase was related to new store openings. The company also pointed out that revenue at stores open at least a year, which excludes the impact of newly opened stores, rose 5.6 percent in the U.S. That was a combination of 6 percent growth at Dunkin' Donuts, and 1.7 percent growth at the much smaller Baskin-Robbins unit.
The results from Baskin-Robbins' U.S. division are important because it has been the company's weakest link. The Dunkin' Donuts U.S. division is by far the company's biggest unit, making up about 70 percent of its revenue. Executives have acknowledged that they need to work on menu changes and franchisee relationships at the ice cream chain, where U.S. revenue fell slightly over the year, to $12 million from $12.3 million.
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