Thanks, Dave.
As that Dave mentioned declared earlier, our $X.XXXX reinstated third of a per our are Board pleased and Directors of dividend quarterly we program dividend the and share for regular quarter. authorized
overall the we our we shareholders. to of quarter, and During under our funding borrowing the the had financial health dividend second all of reinstatement also the of reflects under commitment variable million the that our and brands notes. The VFN of $XXX Dunkin’ borrowed repaid repayment the
franchisees webinars, and XX% franchise of the anticipate various operating strength the the through even franchisees it the we XXXX if with of the still believe, with our on franchisees on applied of business our to is start to expected year. a and be their remain the end majority business ability and health. a liquidity where cash we our the We we of average to of crisis assistance recovery flow by franchisee U.S. confident ability based Act. under beginning many Given I’m G&A, Overall, in CARES received the stability current to occur. approximate leverage to at maintain for attendance that appropriate and to model, our our conversations ongoing our going second wave franchisee fiscal
traditional quarter, a XX% received a that stand-alone government last As representative assistance. estimate mentioned restaurant Dunkin’ reflects this for
drive-thrus experiencing, recovering spread parts as earlier, beverage faster the strong franchisees strong are Obviously, as of recovery. But discussed impact, experiencing Midwest, been we West, markets, as our sales. pockets seeing are Southwest and newer are our the We have they equally. has not are significantly such of more and much
and as offices Our campuses and as urban the Boston, convenience businesses drive-thru. in offer other transportation remain locations well. closed these downtown Many still markets, Manhattan challenged, markets both also Sport a facilities, closed. like of and are college don’t remain and hubs
contact We monitor continue most franchisees to remain impacted about and with economic in these closely regular their the the markets our and performance of areas. conditions the of networks in urban other
slight been although in basis week-to-week sales and seen pre-COVID to and levels. areas most on a have return have sales downtown We close in of traffic markets, business improvements slow to many these
this to continue for financial franchisee We advocate heavily evaluate of select networks continue urban and primarily to population. assistance opportunities on impacted behalf
to traffic networks levels. Our our stability markets they positioned in well reinforce that with line returns previous franchisee so closer financial are goal in remains the when of these
the are to looking We our business corporate to always for franchisees. improve ways from
our Dunkin’ decided portfolio growth. assess up strong Dave raising set U.S. on to future was time work U.S. As franchisees working system rationalization with earlier, its we estate our take Baskin a to profitable mentioned this to through already strategy. similar for the continued real portfolio and bar the
system-wide U.S., kiosk Dunkin’ XXX X.X% sales. our fiscal said this year, less self-serve we to we Speedway of representing close For locations XXXX, expected earlier than during
well of could With during XXX of they close, Speedway of to Most would were our all the XXX restaurants unprofitable X% where we points. there and brand, into of restaurants for our closures is with these margins are believe represent remodels, new whether want and of building on the do locations for will be for U.S. both traffic that traditional average primarily either the of opportunity two quarter points I time, these or franchisees permanently the this sales that to of locations whether restaurants, franchisees, XXX off-strategy to closures, the should also distribution restaurant franchisees closings. locations many including we alternative discussions closing locations, but weekly the close. and system. reinvestment emphasize the areas relocatable or system-wide to for the are Speedway of relocating one the approximately higher low took through footprint, close. approximately these average restaurants U.S. group EBITDA volume our for these temporary add sales, importantly, sales that we crisis, profitability. sales COVID of were to accelerate may total well the If to weekly drive-thru. average inclusive below These around greater At the enable are average Dunkin’ had with below more they a permanently them the And they can X% next-generation locations these only Dunkin’
will future We of and an assessment. locations, closings same anticipate internationally place for the U.S., Similar the also see closures XXX the low and that year. closures and believe growth. our our profitable are these position We close as international are on-strategy, Dave sales could most our in expect of by for licensees. doing franchisees are We this we now additional And more franchisees end the the take franchisees unprofitable these restaurants which us mentioned to earlier, volume of many licensees XXXX.
revenues period, franchisees as income due result to our well $X includes about. the related period reflects as the second income to variable expense. of by net driven landlords. decline pandemic, other primarily and income in to and provided waivers spoke decrease we in in impact as call. most to the million, year to by in fees compared million decrease we recorded waived decrease a and and decrease the a was by decreases share received year’s about decrease franchisees decreased to primarily them payments from period to year for approximately to period. a of tax in prior significantly prior provided up operating our to primarily decrease primarily $X.XX, unfavorable the interest million, prior as period rent urban in extinguishment million a well the a Diluted quarter landlords. to hardest sales $XX in income driven Net the royalty by net result million decrease offset a our decline on revenue decrease previously The as including hit million, a from a adjusted $XX.X and or compared result Now the to cream operating approximately income transaction. by in adjusted adjusted allowed for or second period, on last income. a in as travel current as in corporate and balances, system-wide nonessential relief the rental in Dunkin’ the excess properties advertising income year in with and financial share of of in earned XX.X%, X spoke year or decrease waivers that an current meeting for waivers the revenues period, Also XX.X%, We months a and year were decreases result prior from earnings compared products. million are the decreases income quarter compensation, was million, quarter expenses, royalty XX.X%, primarily income contributing defer financial in QX our offsetting incentive $X first which and quarter in due rent waivers cash the XX% income Royalty I in $XX.X XX% our in in per in the offset per areas XXX net decline or $XX income respectively, reduced franchisees, rent expense by net for the a prior tax to franchisees decrease as debt pandemic. respectively, G&A $XX.X offset operating of of U.S. spending $X I in XX% income and diluted impacted X-month for rental $XX.X million in decrease a conjunction provided also operating margin, a for million, of by recognized many reduction in in benefits on compared to the amount to decreased the income the of results, and earnings rent segment. period prior period a to was immaterial rental sales, refinancing to to loss year adjusted year expenses year the the of the and tax impact year for income decreased a system-wide of and impacts compared in for Operating $X.XX sales on income or $X.X and adjusted second income XX.X%, payments a in of These ice which the by and second current the the the income approximately respectively, Also quarter COVID-XX decreased second quarter
benefits, Excluding recognized tax lower by and for second year and share have quarter diluted fiscal excess year per impact no per adjusted earnings adjusted benefits the been the second share for earnings tax XXXX. the fiscal share on XXXX. per would diluted earnings approximately $X.XX quarter diluted had Recognized both per of share share excess per impact of of diluted earnings
cash outside second States. for million million gift cash in of domestically the reserved quarter United funds held with $XX in and the and accounts cards ended Excluding $XXX held we of million, advertising $XXX unrestricted
service million principal agreements, restricted months interest. As required X approximately includes and reserve $XX amounts, debt including under cash our our of of debt
nonessential our delaying best our we beauty closely leverage the all The for very tactical ensuring reduce significantly making liquidity is business to also the or expenditures, we for capital been cash model while our reducing managing we the manage long-term decisions continue controlling smart ourselves our We control to of G&A. our and able position spending. continue expenses, ability future. outlay and By operating of to and around by our have certain to
million average Our to pandemic to and spend the G&A prior was approximately million. CapEx cash $XX monthly $XX
to $XX estimate for cash Again, spend until approximately capital and $XX funds G&A revised business to million be that expenditures We and our the will average outgoing monthly is G&A normalizes. that million continue CapEx only.
our we second XXXX leverage, on our for our we make of $X to payment debt Moving our EBITDA payment. QX Based principal with anticipate We quarter ended to principal required adjusted not QX, were XXXX do approximately million. a scheduled X.X:X. of the making ratio normally leverage QX to where finished
available under funding variable We $XXX in capacity also million our have notes.
ratio, coverage XX-month under a a our at of noted I basis. is is primary trailing the our securitization the which calculated As covenant end on on quarter call, service each QX debt financial
if sales like the strapping I release below store was X.XXx. would in cash sales finished The service first information the XXXX included morning. quarter a XX% this QX. service coverage been second quarter-to-date fiscal of Dunkin’ our a In with to X.XXx. our of covenant We press domestic coverage occur fell reiterate ratio that event ratio debt week-over-week closing, would trigger, U.S. comparable during debt improving have only the
call Dunkin’, Baskin-Robbins also comparable July single stores. store the As sales through Q&A. digits sales XX now of XX, down to July turn similar And down low comparable operator for the low the quarter-to-date ended ended for U.S. will to were over store were open week quarter-to-date I open And week single-digits stores. for
