Dunkin’ Brands held their quarterly earnings call yesterday morning and John Gordon of Pacific Management Consulting Group, our expert Restaurant Analyst, reported for us on the call: “Dunkin’ posted credible Q1 earnings results, beating both consensus Wall Street views of revenues and earnings ($.05 EPS beat). The stock was up about 9% in the first hour. It’s important to note that the signing fee from the K-cup distribution deal was the big driver of the earnings beat. Dunkin’ is fortunate this came together. Dunkin’ US same store sales were up 2.7%, with .5% traffic gain, 3% price and -.5% mix. This is better than the latest multi-quarter trend, even allowing for weather. 78 units were added, of which only 7 were in the core markets. The price increase impact was important. Significant discussion arose when DBI reported the West and Emerging 2013/2014 new unit cash on cash returns were under the 25% touted earlier, now in the high teens to low 20% range. This return does not include debt service. Paul mentioned higher build-out expense, and Nigel the need to improve beverage mix.” The full transcript of the call is available here.