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Dunkin Brands CEO Nigel Travis weighs in on company growth, expansion plans and CEOs’ call on Washington to fix the deficit.
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Well Dunkin' brands beating the street with adjusted third quarter earnings of marking the fifth straight quarter of double digit growth but the -- to see a slight miss on the revenue side joining an out -- talk about the numbers and much more.
I don't -- is -- -- Nigel welcome back to the show.
Yeah Gerald.
I'll ask you this -- get to the number for first ask you a get your reaction on this open letter from these eighty CEOs has been related and I'm -- we think about what they want to see congress do when it comes to.
The sixteen trillion dollars in debt that we're dealing with as a country you know they want to broaden.
The tax base increase tax revenues and cut spending and what you make of what your colleagues out there are saying to congress.
Well I basically agree with it that you that you cannot run anything -- company -- the country.
Well putting a foot on the gas pedal and -- foot on the brake pedal.
And I think the idea that we can carry L by cutting the deficit -- -- increasing taxes is is one of those no sustainable.
So I think you need a balanced approach.
What I would also say is we at Dunkin' brands of -- Very positively with the -- tells we've -- number changes made in the last couple of years.
But I think the real issues that is the deadlock in congress.
I'm currently reading Volvo with -- about a about -- the politics.
Have you -- -- blah blah blah is pretty terrible.
But what I am confident of dollars and Washington three weeks ago I think whoever gets elected.
I think there is a belief now that that needs to be -- more collegial approach.
Solving this -- is helpful that is gonna push quote congress down that road.
-- we have more collegial approach I think they have to focus Fuzzy on the fiscal cliff.
-- my view is and I'm very optimistic though that it will get done.
I know I would I -- and investors in New York earlier this week saying the same exact thing it Nigel they agree with you as well let's talk about expansion plans that.
Because I know that here in the United States you have maintained that you want to double the size of the company.
In the US in the next twenty years do you still feel confident considering where we are economically right now this country that you can do the tab expansion that you wanna do.
Yet we feel very confident -- well if you brand's -- financing isn't an issue we haven't discussed finance about franchisees.
Since the -- -- a 2010.
Now earnings -- -- this morning we increased our guidance.
In the US the Duncan does those from a net 260 -- -- I think we moved it up to two I think that's 300.
Globally we nearly doubled the number -- new schools that we opened in the last pulls up.
We feel very confident that we got -- like this say a mega growth comes company.
We think that we're well on the -- Hits in the 5% Dunkin' Donuts growth Soledad there's so many investors the vol Schmidt well.
Whether when they helped me about I've always said the only reason we don't go then now is we wanna get there and a steady sustainable way rather than just going for the numbers.
We want every still opens to be profitable that's basically happening.
-- so it's a measure of growth.
All right well let's get -- they're gonna stay on track but those plans and obviously your third quarter profit quadrupling its gonna help things along I do wanna ask you about global expansion because I know.
A since you have gone a public and I was just five quarters ago that the international markets have been a big revenue stream.
For Duncan and especially for Baskin Robbins is that gonna continued they consider what we're saying covering Europe.
Yeah we feel very good about Baskin Robbins Duncan done -- science -- -- welcomed progress whether we're making investments in the supply Zheng at management.
Intel zero lies a very small part of our international business less than 500 schools out about 7000.
We've actually just might small investment -- -- Around two million dollars.
We've actually done very well -- by industry about franchisees -- stretched.
So we made an investment we're gonna -- with them to build on the success they've already had it is now -- -- some -- -- And I'm I'm -- single positive about Europe the mandate clearly there are problems to be resolved.
But I think that -- on the way to -- -- I think we're now seeing leadership.
You could -- a little bit on the light side but we're now seeing leadership in Europe I think Europe -- is a growth opportunity going forward because I really think we've hit the ball from the.
We'll let -- -- -- let you go another big cake cubs have been so far very successful over the as you got to Starbucks vet says give this.
You're trying to to get a patent on that the term bagel bunch skin.
And I didn't see this in my in my Duncan store in the next year a bagel -- -- the.
Well you did -- Clearly you've you may do -- we got off the many times.
But a more traditional and I missed the -- those -- and well this tail.
I'll just promote fit I know you like dominoes because -- helping people and -- -- gravy is backed by Holloway.
Our I don't adult.
All right yep and -- none of -- that's pretty much a market that knowledge in this in this news or -- thank you very much it's good to have young for the quarter but the Travis thank you about zero.
