(Reuters) - Dunkin’ Brands Group Inc’s (DNKN.O) raised its full-year earnings forecast after strong sales at its established restaurants helped it beat analysts’ estimates for third-quarter profit.
The company now expects per-share earnings of $1.25 to $1.27 for the year, up from $1.22 to $1.25 forecast earlier.
Analysts on average were expecting $1.26 per share, according to Thomson Reuters I/B/E/S.
For the third quarter, the company earned 37 cents per share excluding one-time items, topping analyst expectations of 35 cents per share.
Dunkin’ shares rose 3 percent to $31.80 on Thursday in trading before the bell.
The company, however, lowered its forecast for full-year revenue growth to 6 to 7 percent from 7 to 8 percent. The new range implies revenue of between $665.9 million and $672.2 million, while analysts were expecting $673.8 million on average.
The downward revision comes as an increasing number of consumers refrain from spending on non-essential items in a tough economy beset with high unemployment rates.
Consumer spending, which drives about two-thirds of the U.S. economy, has not only been affected by sluggish demand but also a punishing drought that restricted economic growth to 1.3 percent in April-June.
Chili’s Grill & Bar parent Brinker International Inc (EAT.N) on Wednesday said a cool-down in sales at established restaurants was stretching into the current quarter due to softening trends in the industry.
Canton, Massachusetts-based Dunkin’, which also owns the Baskin-Robbins ice cream brand, said net income rose to $29.5 million in the third quarter from $7.4 million a year earlier.
Revenue rose 5 percent to $171.7 million, falling short of Wall Street estimates of $174.9 million.
Domestic Dunkin’ Donuts shops account for almost 75 percent of the company’s revenue and more than 80 percent of its profit.
During the third quarter, the business reported a 2.8 percent rise in same-store sales.
Dunkin’ shares closed at $30.81 on Wednesday on the Nasdaq.
The stock sold at $19 per share last July in one of the most successful initial public offerings by the restaurant industry.
Reporting By Lisa Baertlein in Los Angeles and Juhi Arora and Siddharth Cavale in Bangalore; Editing by Sreejiraj Eluvangal