In its earnings call yesterday, Dunkin’ reported a “double beat” of both earnings per share and revenues, as well as an uptick in US same store sales of 2.0 percent, but the stock was flat and the same store sales components mixed with 0.30 percent traffic and ticket 1.80%. Further, the ticket increase included 3.75 % price increases and negative mix shifts of 1.95% (largely due to lower K-Cups, higher beverage only transactions and lower hash brown sales). This generated many questions from why the price increases to giving up the combo meals. CEO Nigel Travis mentioned that franchisees were “on board” and “were taught” the importance of transactions! Along with President Paul Twohig, he also noted franchisee profitability was at a near-high in terms of EBITDA dollars and percentages per store, making the switch to beverage and transactions viable. Twohig noted the west and emerging market shops’ cash on cash returns hit 20% in 2015 (not adjusted for debt service of future CAPEX) and he stated that going forward, stores older than 1.5 years will enter the comps sales base – an extension of time and more similar to the casual dining concept. New store development was down slightly, with 51 % opening in core and established markets (where Dunkin’ received higher initial fees), 25% in emerging and 24 percent in the West. It was also announced yesterday that the aforementioned President of Dunkin’ Donuts US and Canada, Paul Twohig, will retire from the company in 2017. Twohig, who joined Dunkin’ in 2009, will remain in place until a successor is appointed. Congratulations, Paul!