Dunkin' Brands Group (FRA:2DB) Operating Income : €352 Mil (TTM As of Sep. 2020)

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What is Dunkin' Brands Group Operating Income?

Dunkin' Brands Group's Operating Income for the three months ended in Sep. 2020 was €103 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2020 was €352 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Dunkin' Brands Group's Operating Income for the three months ended in Sep. 2020 was €103 Mil. Dunkin' Brands Group's Revenue for the three months ended in Sep. 2020 was €307 Mil. Therefore, Dunkin' Brands Group's Operating Margin % for the quarter that ended in Sep. 2020 was 33.68%.

Dunkin' Brands Group's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Dunkin' Brands Group's annualized ROC % for the quarter that ended in Sep. 2020 was 10.55%. Dunkin' Brands Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2020 was 88.40%.

Dunkin' Brands Group Operating Income Historical Data

The historical data trend for Dunkin' Brands Group's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dunkin' Brands Group Operating Income Chart

Dunkin' Brands Group Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Operating Income

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332.26

347.16

318.96

350.35

390.68

Dunkin' Brands Group Quarterly Data
	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20
Operating Income	Get a 7-Day Free Trial															104.16	91.51	88.44	69.10	103.37

Dunkin' Brands Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was €352 Mil.

Dunkin' Brands Group (FRA:2DB) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Dunkin' Brands Group's annualized ROC % for the quarter that ended in Sep. 2020 is calculated as:

	ROC % (Q: Sep. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2020 )	+	Invested Capital (Q: Sep. 2020 ))	/ count )
=	413.484 * ( 1 - 24.01% )	/	( (3042.944	+	2911.951)	/ 2 )
=	314.2064916	/	2977.4475
=	10.55 %

where

	Invested Capital		(Q: Jun. 2020 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3400.448	-	73.848	-	( 458.081	-	max(0, 469.774	-	753.43	+	458.081	))
=	3042.944

	Invested Capital		(Q: Sep. 2020 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3301.764	-	94.23	-	( 520.981	-	max(0, 479.157	-	774.74	+	520.981	))
=	2911.951

Note: The Operating Income data used here is four times the quarterly (Sep. 2020) data.

2. Joel Greenblatt's definition of Return on Capital:

Dunkin' Brands Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2020 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2020 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2020		Q: Sep. 2020
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	438.74	/	( ( (512.545 + max(-158.329, 0))	+	(480.079 + max(-212.582, 0)) )	/	2 )
=	438.74	/	( ( 512.545	+	480.079 )	/	2 )
=	438.74	/	496.312
=	88.40 %

where Working Capital is:

	Working Capital		(Q: Jun. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(100.55	+	0	+	150.608)	-	(73.848	+	33.494	+	302.145)
=	-158.329

	Working Capital		(Q: Sep. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(74.056	+	0	+	132.484)	-	(94.23	+	32.384	+	292.508)
=	-212.582

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2020) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Dunkin' Brands Group's Operating Margin % for the quarter that ended in Sep. 2020 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2020 )	/	Revenue (Q: Sep. 2020 )
	=	103.371	/	306.95
	=	33.68 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Dunkin' Brands Group Operating Income Related Terms

Thank you for viewing the detailed overview of Dunkin' Brands Group's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Dunkin' Brands Group (FRA:2DB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Dunkin' Brands Group Inc (FRA:2DB) » Definitions » Operating Income

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Address

130 Royall Street, Canton, MA, USA, 02021

Website

https://www.dunkinbrands.com

Dunkin' Brands, through Dunkin' Donuts (83% of system sales) and Baskin-Robbins (17%), generates revenue through franchise royalties and rent payments, sales of ice cream products to franchisees, and sales at company-owned stores. Based on systemwide sales of $12.2 billion in 2019, Dunkin' is the second-largest global beverage and snack chain behind Starbucks. There are more than 13,100 Dunkin' Donuts (9,600 U.S. and 3,500 international) and almost 8,000 Baskin-Robbins locations worldwide (2,500 U.S. and 5,500 international). In October 2020, the company agreed to a $11.3 billion buyout by Roark Capital-backed Inspire Brands, the parent company of Arby's, Sonic, Buffalo Wild Wings, Jimmy John's and others.

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