DNKN Dunkin Brands Group Inc

Dunkin' Brands Group Inc. posted better-than-expected results in its latest quarter, despite lackluster sales and traffic at its Dunkin' Donuts U.S. locations.

For the latest quarter, same-store sales grew 1.1% at Dunkin' Donuts U.S. locations, below the 2.9% reported in the second quarter and the 2% growth seen in the year-earlier period. The company noted a 0.7% decline in traffic at those stores and said in-restaurant K-Cup and packaged coffee categories have had a negative impact.

"While we were disappointed with our third-quarter Dunkin' Donuts U.S. comparable-store sales, we remain on track to deliver our full-year targets," said Nigel Travis, chief executive of Dunkin' Brands.

The parent company of Dunkin' Donuts and Baskin-Robbins has posted modest sales growth in recent quarters amid a competitive breakfast environment and challenging economy.

Same-store sales at Baskin-Robbins locations in the U.S. climbed 7.5%, compared with 6.0% during the same period a year ago. The climb was driven by increased sales of cups and cones, beverages, desserts, and cakes, stimulated by strong demand online.

The company said it now expects Baskin-Robbins U.S. comparable-store sales to climb between 3% and 5%, up from a previous range of 1% to 3%. Dunkin Brands said it continues to expect Dunkin' Donuts U.S. comparable-store sales to increase between 1% and 3%.

During the quarter the company opened 90 net new restaurants world-wide.

Overall, the company posted a profit of $46.2 million, or 48 cents a share, down from $54.7 million, or 52 cents a share, a year earlier. Excluding certain items, adjusted earnings on a per-share basis were 52 cents.

Revenue climbed 8.9% to $209.8 million.

Analysts surveyed by Thomson Reuters forecast per-share earnings at 51 cents a share on revenue of $204 million.

Dunkin' has been trying to speed service at its doughnut shops, redesigning prep stations to be faster to meet busy morning schedules. Dunkin', which gets most of its sales from breakfast, is also retooling its approach to emphasizing healthier fare and focus more on breakfast sandwiches.

Separately on Thursday, the company shuffled its executive ranks. Bill Mitchell, 50, was named president of Dunkin' Brands International, Scott Murphy, 42, has been named senior vice president of Dunkin' Donuts operations in the U.S. and Canada, and Weldon Spangler, 50, has been named senior vice president of Baskin-Robbins in the U.S. and Canada.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

October 22, 2015 08:05 ET (12:05 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.