Dunkin’ Brands (NASDAQ:DNKN) Raise 2015 Outlook

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By Jacob Maslow

NYC Dunkin Donuts storeDunkin’ Brands Group Inc. (NASDAQ:DNKN) boosted its 2015 outlook Thursday morning after reporting better-than-expected profits and sales in the last quarter. The company is now targeting revenue growth of 6-8%, which is up from its previous target of 5-7%. Adjusted earnings are now projected to be between $1.87 and $1.91 a share, up from the initial guidance of $1.83-$1.87 a share.

According to Dunkin’, the results are a reflection of the company’s deal with Keurig and J.M. Smucker Co. The company’s Keurig deal allows Dunkin’ K-Cups to be sold at retailers all across the country.

Shares were up 1.8% in pre-marketing trading on the news.

Dunkin’s famous brands Dunkin’ Donuts and Baskin-Robbins have seen sluggish sales growth recently as the breakfast market has been increasingly competitive. The company reported disappointing earnings guidance in December for 2015. Dunkin’ blamed sluggish sales of packaged coffee and continued consumer pressure for the guidance.

Dunkin’ reported a $25.6 million profit, or 25 cents a share, which was up from $22.8 million the previous year. Items excluded, earnings were at 40 cents a share. Company revenue also grew 8.1% to reach $185.9 million. Analysts were expecting earnings of 35 cents a share and revenue to be at $180.7 million. Both U.S. and international same-store sales are also up.

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