Shares of Dunkin Brands are exploding higher after the company reported first quarter results that topped estimates and increased its outlook for the year.
The stock was up nearly 9% in pre-market trading.
The owner of the Dunkin' Donuts franchise reported first quarter earnings per share of 40 cents, beating the forecast for 35 cents, according to Bloomberg.
Revenues came in at $185.9 million, beating estimates for $180.65.
Dunkin' Donuts US comparable store sales rose 2.7%, while Baskin-Robbins US comparable store sales rose of 8.0%.
In a release, Dunkin CEO Nigel Travis said, "This was a really strong quarter and we are delighted with the performance of our product and marketing programs given the severe weather that we experienced in many of the markets where our restaurants are located. Our Dunkin' Donuts U.S. franchisees got the year off to a strong start by demonstrating great flexibility and resiliency in dealing with the challenging circumstances."
The company also raised its forecast for the year, saying it expects revenue to rise 6%-8%, up from an earlier outlook for 5%-7% growth, while adjusted EPS is expected to total $1.87-$1.91, up from $1.83-$1.87.
Dunkin added that this guidance reflects, "the financial impact of the agreement with The J.M. Smucker Company and Keurig to make Dunkin' K-Cup® packs available at additional retail outlets nationwide net of the financial impact of the profit-sharing agreement it reached with Dunkin' Donuts U.S. franchisees."
The stock is up by nearly 12% year-to-date.
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