Revenue during the quarter went up marginally by 0.47 percent to $190.67 million from $189.78 million in the previous year period. Gross margin for the quarter expanded 317 basis points over the previous year period to 83.71 percent. Total expenses were 52.12 percent of quarterly revenues, down from 55.03 percent for the same period last year. This has led to an improvement of 291 basis points in operating margin to 47.88 percent.

Operating income for the quarter was $91.29 million, compared with $85.33 million in the previous year period.

However, the adjusted operating income for the quarter stood at $96.67 million compared to $91.24 million in the prior year period. At the same time, adjusted operating margin improved 262 basis points in the quarter to 50.70 percent from 48.08 percent in the last year period.

"We are updating our fiscal year 2017 earnings per share guidance to reflect a new accounting standard for share-based compensation, which requires us to change how we present certain items in our financial statements," said Kate Jaspon, acting Chief Financial Officer, Dunkin Brands Group, Inc. "While our updated guidance reflects the realized benefit to our earnings in the first quarter, it does not reflect any potential future material impact as a result of the new accounting standard."

For financial year 2017, Dunkin Brands Group, Inc expects diluted earnings per share to be in the range of $2.22 to $2.30 and its adjusted diluted earnings per share to be in the range of $2.40 to $2.43.

The company has spent $2.26 million cash to meet investing activities during the quarter as against cash outgo of $0.46 million in the last year period.

The company has spent $21.71 million cash to carry out financing activities during the quarter as against cash outgo of $63.68 million in the last year period.

Cash and cash equivalents stood at $323.17 million as on Apr. 01, 2017, up 44.58 percent or $99.65 million from $223.52 million on Mar. 26, 2016.

Working capital increases sharply
Dunkin Brands Group, Inc has recorded an increase in the working capital over the last year. It stood at $218.13 million as at Apr. 01, 2017, up 86.04 percent or $100.88 million from $117.25 million on Mar. 26, 2016. Current ratio was at 1.61 as on Apr. 01, 2017, up from 1.34 on Mar. 26, 2016.

Days sales outstanding went down to 48 days for the quarter compared with 49 days for the same period last year.

At the same time, days payable outstanding went up to 48 days for the quarter from 42 for the same period last year.