Dunkin' Brands Group Inc. on April 30 said it is withdrawing its fiscal 2020 outlook and long-term targets due to the impact of the COVID-19 pandemic despite reporting first-quarter results that beat analyst estimates.
The restaurant operator said it will suspend its dividend program, which would result in savings of about $33 million in the second quarter, and share repurchase programs as it looks to preserve cash and reduce expenses.
For the quarter ended March 28, the company reported adjusted diluted EPS of 67 cents, flat from the prior-year period and above the S&P Global Market Intelligence mean consensus estimate of 59 cents.
The company, which owns the Dunkin' Donuts and Baskin-Robbins brands, said adjusted net income inched down 0.7% to $55.5 million, beating the Market Intelligence estimate of $50.6 million.
Revenue during the period increased 1.3% to $323.1 million.
However, comparable-store sales of Dunkin' U.S. declined 2%, primarily due to the pandemic. In the first 10 weeks of the quarter, comparable-store sales grew 3.5% but sank 19.4% in the last three weeks of the period.
Shares of Dunkin' Brands were down 2.83% to $62.86 in midday trading on April 30.