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Dunkin' Sales Disappoint as Same-Store Sales Drag The company missed expectations due to weak sales at Dunkin' Donuts in the U.S. and Baskin-Robbins' struggles abroad.

By Kate Taylor

Opinions expressed by Entrepreneur contributors are their own.

Dunkin' Brands' quarterly report wasn't as sweet as the donut giant expected.

The company today posted second-quarter sales that fell short of expectations due to weak same-store sales at Dunkin' Donuts in the U.S. and Baskin-Robbins' struggles abroad. It also cut its full-year forecast in a sign that more weakness is to come.

Dunkin' Brands reported a second-quarter profit of 47 cents a share, in line with analysts' estimates. Revenue for the quarter rose to $190.9 million from $182.5 million a year ago, but missed the $198.5 million analysts were expecting.

Related: Dunkin' Donuts Franchisees Forced to Raise Coffee Prices

Same-store sales at U.S. Dunkin Donuts rose only 1.8 percent, compared to 4 percent in the same period last year, with the company attributing the slower growth to "macroeconomic challenges" across the retail and fast-food industries as well as a cold and rainy spring. Dunkin' Donuts American market makes up around 75 percent of the company's total revenue.

Baskin-Robbins was also to blame for the weak quarter. The chain, which has thrived internationally despite the fact that there are only a handful of stores open in the U.S., failed to reach its anticipated profit this quarter. The Baskin-Robbins joint venture in Japan didn't perform as well as expected, says Dunkin's CFO Paul Carbone, and overall ice cream profits were down for Baskin-Robbins International.

While Dunkin' Brands still expects Baskin-Robbins to achieve full-year same-store sales to grow 1 to 3 percent, it now expects same-store sales at U.S. Dunkin' Donuts to grow 2 to 3 percent for the year, down from an earlier forecast of 3 to 4 percent. The company also lowered its full-year profit and revenue targets.

Related: How Baskin-Robbins Is Trying Not to Disappear

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

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