Dunkin Brands (DNKN) 8-K Dunkin’ Brands Reports Second Quarter 2011 Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

Dunkin’ Brands Reports Second Quarter 2011 Results

CANTON, Mass. (August 3, 2011)—Dunkin’ Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin’ Donuts (DD) and Baskin-Robbins (BR), today reported results for the quarter ended June 25, 2011. “We delivered strong results for the quarter as a result of our continued focus on driving comparable store sales, expanding contiguously in the U.S., and accelerating international growth across both brands,” said Nigel Travis, Chief Executive Officer, Dunkin’ Brands, Inc. and President, Dunkin’ Donuts. “Our emphasis on operational excellence and exciting product innovations, supported by great marketing, produced strong global system-wide sales and comparable store sales growth for Dunkin’ Donuts U.S., while our franchisees and licensees continued to drive new store growth, both domestically and internationally.”

($ in millions)	Quarter 2				Increase (Decrease)
	2011		2010		$/#			%
Revenues	$	157.0	$	150.4	$	6.6			4.4	%
Operating Income		61.8		57.9		3.9			6.8	%
Net Income		17.2		17.3		(0.2	)		(1.0	)%
Adjusted Net Income*		24.7		25.6		(0.8	)		(3.3	)%
System-wide Sales Growth									6.9	%
Consolidated US Comparable Store Sales Growth									3.2	%
DD Domestic Comparable Store Sales Growth									3.8	%
BR Domestic Comparable Store Sales Growth									(2.8	)%
DD Global Points of Distribution		9,867		9,524		343			3.6	%
BR Global Points of Distribution		6,560		6,309		251			4.0	%
(amounts and percentages may not re-calculate due to rounding)

Consolidated Key Highlights

Second quarter 2011 financial highlights included:

• Global system-wide sales increased approximately 6.9 percent over second quarter 2010.

• Consolidated U.S. comparable store sales increased 3.2 percent. Dunkin’ Donuts U.S comparable store sales increased 3.8 percent while Baskin-Robbins U.S. comparable store sales decreased 2.8 percent.

• Dunkin’ Brands’ franchisees and licensees opened 140 net new Dunkin’ Donuts and Baskin-Robbins locations on a global basis during the quarter, and 234 during the first six months of 2011, increasing Dunkin’ Brands total points of distribution to 16,427 at the end of the second quarter.

• Revenues increased by more than 4 percent, to $157.0 million for the second quarter of 2011, compared to $150.4 million for the same period in 2010. The Company re-franchised 13 stores between the second quarter of 2010 and the second quarter of 2011. Excluding company-owned stores for both periods, revenues grew approximately 6 percent.

• Operating income was $61.8 million compared to $57.9 million for the second quarter of 2010, representing a 6.8 percent year-over-year increase. Operating income growth over the prior period was impacted by higher ice cream costs due to rising commodity prices.

• Net income was $17.2 million compared to $17.3 million for the second quarter of 2010.

• Adjusted net income* for the quarter was $24.7 million compared to $25.6 million for the second quarter of 2010.

The global system-wide sales growth for the second quarter was primarily attributable to Dunkin’ Donuts U.S. comparable store sales growth (which includes stores open 54 weeks or more), growth in Dunkin’ Donuts and Baskin-Robbins international sales, and global store development.

“Since the first of the year, we have significantly increased the strength of our balance sheet, and after the completion of our initial public offering, have reduced our annual interest expense by 50 percent to approximately $60 million through a combination of debt retirement, restructuring, and repricing. This financing activity resulted in non-recurring charges which impacted year-to-date net income,” said Chief Financial Officer Neil Moses. “The performance of the business in the second quarter demonstrates the strength of our business model and the integrity of our platform for future growth.”

“It’s an exciting time for Dunkin’ Brands as a new public company,” said Travis. “We are pleased with our second quarter results and look forward to sharing our longer term growth opportunities and financial goals in the near future.”

^*  Adjusted net income is a non-GAAP measure reflecting net income adjusted for amortization of intangible assets, impairment charges, and loss on debt extinguishment and refinancing transactions, net of the tax impact of such adjustments.

###

Conference Call

As previously announced, Dunkin’ Brands will be holding a conference call today at 8:00 am ET hosted by Chief Executive Officer, Nigel Travis, and Chief Financial Officer, Neil Moses. The dial-in number is (866) 393-1607 or (914) 495-8556, conference number 82802192. Dunkin’ Brands will broadcast the conference call live over the Internet at http://investor.dunkinbrands.com. A replay of the conference call will be available on the Company’s website athttp://investor.dunkinbrands.com.

The Company’s consolidated statements of operations, condensed consolidated balance sheets, condensed consolidated statements of cash flows and other additional information have been provided with this press release. This information should be reviewed in conjunction with this press release.

Forward-Looking Statements

Certain statements contained herein are not based on historical fact and are “forward-looking statements” within the meaning of the applicable securities laws and regulations. Generally, these statements can be

identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risk and uncertainties include, but are not limited to: the ongoing level of profitability of franchisees and licensees; changes in working relationship with our franchisees and licensees and the actions of our franchisees and licensees; our master franchisees’ relationships with sub-franchisees; the strength of our brand in the markets in which we compete; changes in competition within the quick service restaurant segment of the food industry; changes in consumer behavior resulting from changes in technologies or alternative methods of delivery; economic and political conditions in the countries where we operate; our substantial indebtedness; our ability to protect our intellectual property rights; consumer preferences, spending patterns and demographic trends; the success of our growth strategy and international development; changes in commodity and food prices, particularly coffee, dairy products and sugar, and the other operating costs; shortages of coffee; failure of our network and information technology systems; interruptions or shortages in the supply of products to our franchisees and licensees; inability to recover our capital costs; changes in political, legal, economic or other factors in international markets; termination of a master franchise agreement or contracts with the U.S. military; currency exchange rates; the impact of food borne-illness or food safety issues or adverse public or medial opinions regarding the health effects of consuming our products; our ability to collect royalty payments from our franchisees and licensees; uncertainties relating to litigation; changes in regulatory requirements to our and our franchisees and licensees ability to comply with current or future regulatory requirements; review and audit of certain of our tax returns; the ability of our franchisees and licensees to open new restaurants and keep existing restaurants in operation; our ability to retain key personnel; any inability to protect consumer credit card data and catastrophic events.

Forward-looking statements reflect management’s analysis as of the date of this press release. Important factors that could cause actual results to differ materially from our expectations are more fully described in our other filings with the Securities and Exchange Commission, including under the section headed “Risk Factors” in our prospectus filed with the Securities and Exchange Commission on July 27, 2011. Except as required by applicable law, we do not undertake to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Measures and Statistical Data

In addition to the results provided in accordance with U.S. generally accepted accounting principles (“GAAP”) throughout this document, the Company has provided a non-GAAP measurement, adjusted net income, which presents operating results on a basis before certain adjustments. The Company uses adjusted net income as a key performance measure for the purpose of evaluating performance internally. We also believe adjusted net income provides our investors with useful information regarding our historical operating results. This non-GAAP measurement is not intended to replace the presentation of our financial results in accordance with GAAP. Use of the term adjusted net income may differ from similar measures reported by other companies. Adjusted net income is reconciled from net income determined under GAAP in the attached table “Dunkin’ Brands Group, Inc. Non-GAAP Reconciliation.”

Additionally, the Company has included metrics such as system-wide sales growth and comparable store sales growth, which are commonly used statistical measures in the quick-service restaurant industry and are important to understanding Company performance.

The Company uses “System-wide sales growth” to refer to the percentage change in sales at both franchisee- and company-owned restaurants from the comparable period of the prior year. Changes in system-wide sales are driven by changes in average comparable store sales and changes in the number of restaurants.

The Company uses “Consolidated US comparable store sales,” “DD domestic comparable store sales” and “BR domestic comparable store sales,” which are calculated by including only sales from franchisee- and company-owned restaurants that have been open at least 54 weeks and that have reported sales in the current and comparable prior year week.

About Dunkin’ Brands, Inc.

With more than 16,000 points of distribution in 56 countries worldwide, Dunkin’ Brands Group, Inc. (Nasdaq: DNKN), is one of the world’s leading franchisors of quick service restaurants (QSR) serving hot and cold coffee and baked goods, as well as hardserve ice cream. At the end of 2010, Dunkin’ Brands’ nearly 100 percent franchised business model included 9,760 Dunkin’ Donuts restaurants and 6,433 Baskin-Robbins restaurants, and the company had system-wide sales of approximately $7.7 billion. Dunkin’ Brands Group, Inc. is headquartered in Canton, Mass. The Company’s website is located atwww.dunkinbrands.com.

Contact(s):

Stacey Caravella (Investors)	Michelle King (Media)
Director, Investor Relations	Director, Global Media Relations
Dunkin’ Brands, Inc.	Dunkin’ Brands, Inc.
investor.relations@dunkinbrands.com	michelle.king@dunkinbrands.com
781-737-3200	781-737-5200

SEGMENT RESULTS

	Three months ended
	June 25,			June 26,		Increase (Decrease)
Dunkin’ Donuts U.S.	2011			2010		$/#			%
	($ in millions)
Systemwide sales growth										6.0	%
Revenues	$	107.4		$	101.0	$	6.4			6.3	%
Segment profit	$	82.6		$	77.7	$	4.9			6.4	%
Points of distribution		6,838			6,641		197			3.0	%
Gross openings		71			70		1			1.4	%
Net openings		39			42		(3	)		(7.1	)%
	Three months ended
	June 25,			June 26,		Increase (Decrease)
Dunkin’ Donuts International	2011			2010		$/#			%
	($ in millions)
Systemwide sales										10.3	%
Revenues	$	3.8		$	3.3	$	0.6			17.3	%
Segment profit	$	3.2		$	3.5	$	(0.4	)		(10.9	)%
Points of distribution		3,029			2,883		146			5.1	%
Gross openings		82			268		(186	)		(69.4	)%
Net openings		23			198		(175	)		(88.4	)%
	Three months ended
	June 25,			June 26,		Increase (Decrease)
Baskin Robbins U.S.	2011			2010		$/#			%
	($ in millions)
Systemwide sales										(5.1	)%
Revenues	$	12.4		$	13.1	$	(0.8	)		(5.8	)%
Segment profit	$	6.9		$	9.4	$	(2.5	)		(26.3	)%
Points of distribution		2,510			2,572		(62	)		(2.4	)%
Gross openings		13			16		(3	)		(18.8	)%
Net closings		(13	)		—		(13	)		n/a
	Three months ended
	June 25,			June 26,		Increase (Decrease)
Baskin Robbins International	2011			2010		$/#			%
	($ in millions)
Systemwide sales										15.3	%
Revenues	$	27.4		$	25.4	$	2.0			8.0	%
Segment profit	$	10.5		$	12.4	$	(2.0	)		(16.0	)%
Points of distribution		4,050			3,737		313			8.4	%
Gross openings		148			125		23			18.4	%
Net openings		91			87		4			4.6	%

DUNKIN’ BRANDS GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(In thousands)

(Unaudited)

	Three months ended						Six months ended
	June 25, 2011			June 26, 2010			June 25, 2011			June 26, 2010
				(As Adjusted)						(As Adjusted)
Revenues:
Franchise fees and royalty income	$	98,139			90,730			184,098			170,895
Rental income		24,143			24,316			46,274			46,432
Sales of ice cream products		25,225			23,908			47,941			41,701
Other revenues		9,465			11,462			17,872			18,800
Total revenues		156,972			150,416			296,185			277,828
Operating costs and expenses:
Occupancy expenses—franchised restaurants		12,917			12,334			25,205			26,490
Cost of ice cream products		18,696			15,927			33,820			28,149
General and administrative expenses, net		54,057			52,618			107,943			103,863
Depreciation and amortization		13,119			15,169			26,327			30,501
Impairment charges		404			1,276			1,057			2,690
Total operating costs and expenses		99,193			97,324			194,352			191,693
Equity in net income of joint ventures		4,015			4,794			4,797			8,436
Operating income		61,794			57,886			106,630			94,571
Other income (expense):
Interest income		150			15			265			86
Interest expense		(28,958	)		(27,482	)		(62,840	)		(55,073	)
Loss on debt extinguishment and refinancing transactions		(5,165	)		(3,693	)		(16,172	)		(3,693	)
Other gains, net		(64	)		(274	)		412			(29	)
Total other expense		(34,037	)		(31,434	)		(78,335	)		(58,709	)
Income before income taxes		27,757			26,452			28,295			35,862
Provision for income taxes		10,595			9,115			12,856			12,587
Net income	$	17,162			17,337			15,439			23,275

DUNKIN’ BRANDS GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

	June 25, 2011			December 25, 2010
Assets
Current assets:
Cash and cash equivalents	$	145,614			134,100
Accounts, notes, and other receivable, net		53,688			79,943
Other current assets		65,727			70,334
Total current assets		265,029			284,377
Property and equipment, net		187,981			193,273
Investments in joint ventures		177,224			169,276
Goodwill and other intangible assets, net		2,410,206			2,424,312
Other assets		83,895			76,050
Total assets	$	3,124,335			3,147,288
Liabilities, Common Stock, and Stockholders’ Equity (Deficit)
Current liabilities:
Current portion of long-term debt	$	14,965			12,500
Accounts payable		11,510			9,822
Other current liabilities		224,866			258,233
Total current liabilities		251,341			280,555
Long-term debt, net		1,845,539			1,847,016
Deferred income taxes, net		568,053			586,337
Other long-term liabilities		126,240			127,139
Total long-term liabilities		2,539,832			2,560,492
Common stock, Class L*		881,054			840,582
Stockholders’ equity (deficit):
Total stockholders’ equity (deficit)*		(547,892	)		(534,341	)
Total liabilities, common stock, and stockholders’ equity (deficit)	$	3,124,335			3,147,288

* Prior to filing a registration statement with the Securities and Exchange Commission (“SEC”) related to our initial public offering, Class L common stock was classified within stockholders’ equity (deficit). In order to comply with SEC requirements as a public company, we reclassified Class L common stock outside of permanent equity for all periods presented. For further discussion on Class L common stock, see the consolidated financial statements and notes thereto for the fiscal year ended December 25, 2010, included in the Company’s Prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, with the SEC on July 27, 2011.

DUNKIN’ BRANDS GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Six months ended
	June 25, 2011			June 26, 2010
Cash flows from operating activities:
Net income	$	15,439			23,275
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		26,327			30,501
Loss on debt extinguishment and refinancing transactions		16,172			3,693
Deferred income taxes		726			(5,644	)
Equity in net income of joint ventures		(4,797	)		(8,436	)
Dividends received from joint ventures		5,237			4,869
Other non-cash adjustments, net		2,714			5,555
Change in operating assets and liabilities:
Restricted cash		—			11,193
Accounts, notes, and other receivables, net		26,567			17,867
Other current liabilities		(48,764	)		(44,062	)
Liabilities of advertising funds, net		(1,801	)		2,341
Other, net		675			8,366
Net cash provided by operating activities		38,495			49,518
Cash flows from investing activities:
Additions to property and equipment		(9,136	)		(7,371	)
Other, net		913			—
Net cash used in investing activities		(8,223	)		(7,371	)
Cash flows from financing activities:
Repayment of long-term debt, net		(4,750	)		(100,765	)
Proceeds from short-term debt		—			27,501
Proceeds from issuance of common stock		3,213			—
Repurchases of common stock		(286	)		(3,114	)
Deferred financing and other debt-related costs		(16,951	)		—
Change in restricted cash		73			748
Other, net		(92	)		(142	)
Net cash used in financing activities		(18,793	)		(75,772	)
Effect of exchange rates on cash and cash equivalents		35			(20	)
Increase (decrease) in cash and cash equivalents		11,514			(33,645	)
Cash and cash equivalents, beginning of period		134,100			53,210
Cash and cash equivalents, end of period	$	145,614			19,565

DUNKIN’ BRANDS GROUP, INC. AND SUBSIDIARIES

Non-GAAP Reconciliation

(In thousands)

	Three months ended						Six months ended
	June 25, 2011			June 26, 2010			June 25, 2011			June 26, 2010
Net income	$	17,162			17,337		$	15,439			23,275
Adjustments:
Amortization of intangible assets		7,023			8,730			14,105			17,553
Impairment charges		404			1,276			1,057			2,690
Loss on debt extinguishment and refinancing transactions		5,165			3,693			16,172			3,693
Tax impact of adjustments(a)		(5,037	)		(5,480	)		(12,534	)		(9,574	)
Adjusted net income	$	24,717			25,556		$	34,239			37,637

^(a)  Tax impact of adjustments calculated at a 40% effective tax rate for each period presented.