Current Report Filing (8-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 12, 2015

DUNKIN’ BRANDS GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or Other Jurisdiction of Incorporation)




001-35258	20-4145825
(Commission File Number)	(IRS Employer Identification Number)

130 Royall Street

Canton, Massachusetts 02021

(Address of registrant’s principal executive office)

(781) 737-3000

(Registrant’s telephone number)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On January 12, 2015, Dunkin’ Brands Group, Inc. (the “Company”) issued a press release including domestic development results for the fiscal year ended December 27, 2014 and domestic development projections for fiscal 2015. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

In addition, the investor presentation referred to below includes Dunkin’ Donuts and Baskin-Robbins domestic comparable store sales results for the fourth quarter and fiscal 2014 and international development results for fiscal 2014. Such portions of the presentation are hereby incorporated by reference into this Item 2.02.

Item 7.01 Regulation FD Disclosure.

Beginning on January 12, 2015, the Company intends to use the presentation furnished herewith, or portions thereof, in one or more meetings with investors and analysts. The presentation will also be available online at http://investor.dunkinbrands.com as of January 12, 2015. A copy of the presentation is furnished as Exhibit 99.2 and is incorporated herein by reference.

The information contained in this report, including the exhibits attached hereto, are being furnished and shall not be deemed “filed” for any purpose, and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, regardless of any general incorporation language in any such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits




99.1		Press Release of Dunkin’ Brands Group, Inc. dated January 12, 2015.

99.2		Investor Presentation.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.




DUNKIN’ BRANDS GROUP, INC.

By:		/s/ Nigel Travis
		Nigel Travis
		Chairman and Chief Executive Officer

Date: January 12, 2015

Exhibit 99.1

DUNKIN’ BRANDS ANNOUNCES 2014 DOMESTIC RESTAURANT GROWTH

For the year, Company’s franchisees added total of 422 net new

Dunkin’ Donuts and Baskin-Robbins Restaurants in U.S.

CANTON, MA (January 12, 2015) – Dunkin’ Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin’ Donuts and Baskin-Robbins, announced today that in 2014 its U.S. franchisees opened a total of 422 net new Dunkin’ Donuts and Baskin-Robbins, once again making Dunkin’ Brands one of the fastest growing companies by unit count in the QSR (Quick Service Restaurant) industry.

“This past year was another excellent year for domestic restaurant development for both of our brands and has resulted in Dunkin’ Brands, once again being one of the fastest growing companies by unit count in the QSR industry,” said Nigel Travis, Chairman and Chief Executive Officer, Dunkin’ Brands. “All told, Dunkin’ Donuts franchisees opened 405 net new domestic restaurants in 2014, including our much anticipated restaurants in Southern California, and remodeled another nearly 500 locations. Baskin-Robbins franchisees opened 17 net new locations, marking this the brand’s second consecutive year of positive net development. We believe these results are directly attributable to the appeal of our two strong consumer brands and our continued focus on franchisee unit economics. For 2015 in the U.S., we expect to open between 410 and 440 Dunkin’ Donuts restaurants and between five to ten net Baskin-Robbins locations. ”

Dunkin' Donuts U.S.

In 2014, Dunkin’ Donuts opened 405 net new restaurants in new markets such as California, Colorado, and Nevada, with 97% of domestic growth coming from existing franchisees. California continued to be a focus of growth for the brand with five new free-standing restaurants opening in Whittier, Santa Monica, Long Beach, Downey and Modesto, which opened ahead of schedule. The company is on track with its plan to open approximately 250 new restaurants in California over the next several years, with the long-term goal of having 1,000 restaurants in total throughout the state.

Dunkin’ Donuts also signed agreements in 2014 with franchisees to open new future restaurants in markets, including Northern, Central and Southern California; Oklahoma City, OK; Louisville, KY; Phoenix, AZ; Greensboro, NC; and Wichita, KS, among others.

In 2013, Dunkin’ Donuts unveiled new restaurant design options and last year Dunkin’ Donuts franchisees remodeled 482 restaurants with the new image. Dunkin' Donuts also recently announced the launch of DD Green™ Achievement, a green building program designed to help franchisees build sustainable, energy-efficient restaurants. By the end of 2016, Dunkin' Donuts plans to have 100 new DD Green restaurants across the U.S.

Dunkin' Donuts’ 2014 development numbers include approximately 70 new restaurants in airports, colleges and other non-traditional locations. Dunkin' Donuts currently has over 600 non-traditional

locations, including restaurants at college campuses, mass transit stations, travel centers, supermarkets, entertainment centers and military bases.

In 2015, the Company expects its franchisees to add between 410 and 440 net new Dunkin’ Donuts U.S. restaurants and continues to believe that it can achieve the long-term goal of more than 17,000 restaurants in the U.S., more than doubling its current number of domestic locations.

Baskin-Robbins U.S.

In 2014, Baskin-Robbins achieved a second consecutive year of positive net new unit growth in the U.S., opening 17 net new restaurants in markets including Kentucky, California and Louisiana. Baskin-Robbins also signed agreements in 2014 with franchisees to open new future locations in markets, including Fresno, CA; San Francisco, CA; Phoenix, AZ; Tampa, FL, Louisville, KY; and Colorado Springs, CO, among others.

Additionally, recruiting military veterans as franchisees continues to be a focus for Baskin-Robbins. For 2014, the brand launched a special veteran's incentive program for U.S. veterans seeking to open a domestic Baskin-Robbins location. The new development incentives included more than $25,000 in financial discounts on royalties and initial franchise fees.

In 2015, the Company expects its franchisees and licensees to open five to ten net new Baskin-Robbins restaurants in the U.S.

To learn more about Dunkin’ Brands franchising, visit www.dunkinbrands.com.

Forward-Looking Statements
This news release contains projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Generally, these statements can be identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These projections and statements reflect management’s current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved, and actual results could differ materially from those projected as a result of certain risk factors. A discussion of these risk factors is included in the Company’s periodic reports filed with the Securities and Exchange Commission. Except as required by applicable law, we do not undertake to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise.

About Dunkin' Brands Group, Inc.
With more than 18,800 points of distribution in nearly 60 countries worldwide, Dunkin' Brands Group, Inc. (Nasdaq: DNKN) is one of the world's leading franchisors of quick service restaurants (QSR) serving hot and cold coffee and baked goods, as well as hard-serve ice cream. At the end of fiscal 2014, Dunkin' Brands' nearly 100 percent franchised business model included more than 11,300 Dunkin' Donuts restaurants and more than 7,500 Baskin-Robbins restaurants. Dunkin' Brands Group, Inc. is headquartered in Canton, Mass.

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Contact(s):

Stacey Caravella (Investors)

Director, Investor Relations
Dunkin’ Brands Group, Inc.

investor.relations@dunkinbrands.com

781-737-3200

Michelle King (Media)

Sr. Director Global Public Relations
Dunkin’ Brands Group, Inc.

michelle.king@dunkinbrands.com

781-737-5200

Jenna Kantrowitz

Fish Consulting

jkantrowitz@fish-consulting.com

786-417-5781

Investor Presentation Dunkin’ Brands Group, Inc. 1 ICR XChange Nigel Travis, Chairman & CEO January 12, 2015

Forward-Looking Statements • Certain information contained in this presentation, particularly information regarding future economic performance, finances, and expectations and objectives of management constitutes forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are generally contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates” or “anticipates” or similar expressions. Our forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from those projected or implied by the forward-looking statement. • Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which speak only as of the date hereof. We do not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law. For discussion of some of the important factors that could cause these variations, please consult the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K. Nothing in this presentation should be regarded as a representation by any person that these targets will be achieved and the Company undertakes no duty to update its targets. • Regulation G This presentation contains certain non-GAAP measures which are provided to assist in an understanding of the Dunkin’ Brands Group, Inc. business and its performance. These measure should always be considered in conjunction with the appropriate GAAP measure. Reconciliations of non-GAAP amounts to the relevant GAAP amount are available on www.investor.dunkinbrands.com. 2

3 YEARS OF BRAND HERITAGE SIGNIFICANT U.S. & GLOBAL GROWTH OPPORTUNITY ASSET-LIGHT, NEARLY 60+ 100% FRANCHISED BUSINESS Franchised business model generates strong free cash flow and provides platform for low capital growth

4 Dunkin’ Brands of the Future: 30,000+ Restaurants United States Today: 10,144 PODs; 79% of FY13 revenue Future: 19,500+ Latin America Today: 530 PODs; 2% of FY13 revenue Future: 1,400 Europe Today: 598 PODs; 1% of FY13 revenue Future: 1,800 Asia & Australia Today: 5,736 PODs; 5% of FY13 revenue Future: 9,500 Middle East Today: 1,044 PODs; 10% of FY13 revenue Future: 2,000 Note: “Today” counts as of December 2013.

Driving growth in 2015 and beyond Drive beverage category growth Expand global consumer engagement efforts in mobile, loyalty and social media 1 2 3 4 5 5 Enhance guest experience in all regions Intensify focus in high potential markets in U.S. and globally (California, Europe, Middle East, China) Continue to implement sustainability plan Franchisee economics is underlying priority

Focused growth strategies across each segment 6 INCREASE COMPARABLE STORE SALES AND PROFITABILITY IN DD U.S. INCREASE COMPARABLE STORE SALES AND DRIVE STORE GROWTH FOR BR U.S. CONTINUE DD U.S. CONTIGUOUS STORE EXPANSION DRIVE ACCELERATED INTERNATIONAL GROWTH ACROSS BOTH BRANDS

7 INCREASE COMPARABLE STORE SALES AND PROFITABILITY IN DD U.S.

2014: Comp store sales growth more challenging than expected; but we’re optimistic about the health of the business • Lower- and middle-income households continue to struggle, making value space highly competitive resulting in more discounting • Increased focus on breakfast and coffee by other restaurant companies • Gains in transactions and ticket; Sign of healthy, sustainable growth • Confident in long-term prospects and focused on DD Perks, LTOs, and key Beverage and Food Platforms, to drive ritual with core consumers and attract new users to the brand • Packaged coffee challenged in 2H by grocery coffee expansion Key Challenges Health of the business 8 Dunkin’ Donuts U.S. 2014 Comp Store Sales Growth 1.6% Positive full-year transaction growth Q4 DD U.S. comp store sales growth of 1.4%

LTOs 2015 Product Strategy focused on Platforms and Limited Time Offers 9 Strengthen core menu with platform enhancements and bring regular news with LTOs Balance of Platforms and LTOs enables efficient and effective advertising and reduces menu complexity More robust coffee news; building on Iced Coffee leadership with exciting flavors nobody else can do; expanding frozen beverage line-up Platforms

Differentiated Product Innovation across categories Dunkin’ introduced 40+ products in 2014 10

Using Digital to Drive Our Comps Over 10 million app downloads including mobile payments Launched DD Perks Rewards Program nationally in 2014 – now more than 2M members 11 First steps in building comprehensive 1:1 marketing platform

12 CONTINUE DD U.S. CONTIGUOUS STORE EXPANSION

Opportunity to Double Dunkin’ Donuts US Footprint 13 REGION STORES(1) PENETRATION(1) Core 4,030 1:8,900 Established 2,611 1:20,600 Emerging 1,161 1:76,400 West 280 1:460,000 TOTAL 8,082 1:38,000 1 As of end of Dec. 2014

14 DD PRO FORMA LONG-TERM PENETRATION 280 ~5,100 1,161 ~3,800 2,611 ~3,675 4,030 ~4,350 ~325 ~1,050 ~3,000 ~ 5,000 Q4 2014 Core Established Emerging West Long-term 8,082 Significant Long-Term Expansion Opportunity for Dunkin’ Donuts U.S. ~17,000+ 1:8,200 1:14,600 1:23,000 1:25,000 1:18,300

Compelling unit economics driving accelerated growth 15 2013 COHORT STORE-LEVEL ECONOMICS – TRADITIONAL STORES AVERAGE UNIT VOLUMES $936,000 CASH-ON-CASH RETURNS 25%+ AVERAGE INITIAL CAPEX $450,000 As of 3/1/2014 Standalone, Traditional Dunkin Donuts Restaurants only 2013 data is projected based on partial year results

Successful debut in California 16 MODESTO SANTA MONICA CAMP PENDLETON EMBASSY SUITES SAN DIEGO BARSTOW STATION DOWNEY LONG BEACH WHITTIER Development ahead of schedule…5 traditional locations open; 4 with drive-thrus

Proven Track Record of Accelerating Growth 17 2009 2010 2011 2012 2013 2014 2015E 171 206 243 291 371 410 - 440 DUNKIN’ DONUTS U.S. NET DEVELOPMENT 405

18 DRIVE ACCELERATED INTERNATIONAL GROWTH ACROSS BOTH BRANDS

Targeting International Growth in Highest AWS/Profit Opportunity Markets 19  SIGNED LARGEST DEVELOPMENT AGREEMENT IN COMPANY HISTORY IN CHINA FOR 1,400 DUNKIN’ DONUTS RESTAURANTS  SIGNED RESTAURANT DEVELOPMENT AGREEMENT WITH STRONG U.S. FRANCHISEE FOR 100 DUNKIN’ DONUTS RESTAURANTS IN MEXICO  STRONG DUNKIN’ DONUTS EUROPE OPENINGS  MIDDLE EAST IS A POWERHOUSE FOR BOTH BRANDS  DUNKIN’ DONUTS SUPPLY CHAIN IMPROVEMENTS SUPPORTING FRNACHISEE ECONOMICS  EXCELLENT NEW BR FRANCHISEES IN SOUTHEAST ASIA; RETOOLING ON TRACK IN AUSTRALIA Added 282 net new Dunkin’ Donuts and Baskin-Robbins internationally in 2014

Poor performance over last few years in DD Korea and BR Japan; working closer-than-ever with JV Partners on long-term turnaround; continued success with BR Korea DD Korea BR Japan • Extreme competitive intensity -- 3,000 new points of distribution in last 4 years across 30+ new coffee players • Regulations challenging franchised businesses; choppy consumer sentiment and economy under pressure • Aggressive development over past several years • Transforming brand position through remodels, new menu and marketing • Increase in consumption tax in 1H14; economy under pressure • Slow to respond to headwinds impacting business • Exploring additional revenue sources to leverage supply chain costs • Revamping marketing and implementing promotional plans • Launching new cake innovation Baskin-Robbins Korea continues strong performance driven by innovation Dunkin’ Brands operational and marketing support now in-market for both Joint Ventures 20

21 INCREASE COMPARABLE STORE SALES AND DRIVE STORE GROWTH FOR BR U.S.

Returning Baskin-Robbins U.S. to Growth Restaurant base optimization complete Improving unit economics Attractive franchising offers 22 Opened 17 net new restaurants in 2014 Expecting 5 to 10 net new restaurants in 2015 Growing with top- performing franchisees Growing brand advertising fund Driving topline sales with technology Expecting 1–3% comp store sales growth in 2015 4.7% comp store sales growth in 2014 (Q4 comps 9.3%)

Franchisee-Model Enables Leveraged Capital Structure and Financial Flexibility 23 DELEVERAGE EBITDA growth & required amortization payments SHARE REPURCHASE Offset dilution from exercising of stock options & other opportunistic repurchases DIVIDENDS Raised quarterly dividend from $0.19 in 2013 to $0.23 in Q1 2014 4.9 4.6 4.4 4.2 4.1 5.2 5.2 4.9 5.0 4.8 4.5 4.6 4.6 4.5 UPSIZED TERM LOAN IN AUGUST 2012 $750M Returned to Shareholders since IPO RECENTLY ANNOUNCED INTENT TO SEEK REFINANCING OF EXISTING LONG-TERM DEBT THROUGH SECURITIZATION

2015 Guidance 24 DUNKIN’ DONUTS U.S. 1% – 3% comp store sales growth 410 – 440 total net unit development INTERNATIONAL (DD & BR) 200 – 300 total net unit development BASKIN-ROBBINS U.S. 1 – 3% comp store sales growth 5 – 10 total net unit development BUSINESS SEGMENTS DUNKIN’ BRANDS 5 – 7% revenue growth 6 – 8% adjusted operating income growth $1.88 – $1.91 EPS 15%+ free cash flow growth

Summary • Disappointing Dunkin’ Donuts U.S. comp stores sales growth but building on lessons from 2014 • Intend to return to DD U.S. comps of 3 – 4% in coming years • Strong 2014 Dunkin’ Donuts U.S. restaurant growth; continued robust restaurant expansion in 2015 • Spectacular 2014 Baskin-Robbins performance – will continue to grow at modest pace • Continued intense focus on changing the trajectory of Baskin- Robbins Japan • International moving forward; growing with larger, more experienced partners • Looking to further de-risk business model with intent to seek fixed-rate debt through securitization 25