Allied Domecq Quick Service Restaurant Brands, Dunkin' Donuts, Baskin-Robbins and Togo's, Contribute to Allied Domecq PLC's Results With System-Wide Sales Growth of 7.1%

Randolph, Mass. (April 24, 2003) -- Allied Domecq PLC of the United Kingdom released interim financial results for the period Sept, 1, 2002, through Feb. 28, 2003. The results include the contributions of Allied Domecq Quick Service Restaurants (ADQSR). Based in Randolph, Mass, ADQSR includes popular quick service restaurant brands Dunkin' Donuts, Baskin-Robbins, and Togo's.

ADQSR highlights for the Sept. 1, 2002, to Feb. 28, 2003, period, include:

  • System-wide sales growth of 7.1 percent to $2 billion
  • Operating profit up 14 percent to $39.8 million
  • Number of multi-brand stores (two or three brands under one roof) up 26 percent
  • Joint ventures in Japan and Korea combined operating profit increased by 36 percent
  • Increased total brand distribution points by 4 percent to 10,753 stores worldwide
  • Averaging over 100 franchise agreements per month, with a projected total of 1000 new brand distribution points this year

"We are pleased with our performance to date especially given the flat or negative growth seen by many of our quick service peers," said ADQSR Chief Executive Officer Jon L. Luther, who was appointed to his position in January 2003. "Dunkin' Donuts continues to experience strong system-wide sales growth and is gaining greater market penetration through innovative partnerships with other strong brands, including Stop & Shop and Home Depot."

Mr. Luther continued, "As we enter the second half of the fiscal year, we will significantly reorganize and realign the organization. Our goal is to create an even greater focus on brand growth and loyalty, operational excellence, speed of service, and menu and concept development."


Dunkin' Donuts delivered a 9% growth in system-wide sales driven by a 4% increase in US same-store sales and a 4% increase in distribution points. For the period, Dunkin' Donuts had total sales of $1.55 billion. With a focus on high quality and speed-of-service, its same-store sales growth has continued to outpace the overall QSR industry. During this period, Dunkin' Donuts continued innovating with hot and cold beverages such as caramel iced coffee, and an expanded rollout of scones. The successful February "Who Brought The Donuts?" promotion drove sales of bulk donuts. Strong regional promotions included 'Sports Dreams' in the Northeast, which leveraged the relationships with Major League sports teams. Dunkin' Donuts returned to network TV for the first time in many years - the advertising focused on 'Coffee by the Pound' and resulted in sales increases of 20%. In the second half of 2003, Dunkin' Donuts will introduce an entire new line of espresso-based beverages which are expected drive same-store sales growth.

Baskin-Robbins saw a 10% increase in total international sales and a 4% increase in total distribution points during this period. The brand placed first in Restaurants & Institutions magazine's "Choice In Chains" 2003 survey, marking the twelfth time in the past sixteen years that Baskin-Robbins has been so honored. Through mid June, Baskin-Robbins plans a major promotion with the Twentieth Century Fox movie "X2: X-Men United" that will involve new ice cream flavors and sundaes. The brand's annual "Free Scoop Night" promotion, to be held around the world on April 30, and in Japan, where it will be held on May 9, is expected to reach four million customers in twelve countries. The benefit of the manufacturing strategic alliance with Dean Foods was borne out with operating efficiencies generating cost reductions to franchisees.

Togo's has increased its points of distribution by 7%, even as the brand continues to face strong economic and competitive pressures in California. This week, Togo's introduced a new line of bread, rounding out its in-store selection to six flavors. The new breads, plus the introduction of toasting options, are the first in a series of menu alterations that are expected to grow the business, showcase Togo's culinary depth and enhance the customer experience.


ADQSR's international business continued to grow with system-wide sales increasing by 7% and brand distribution points by 4%. The joint ventures in Japan and Korea enjoyed combined profit growth of 36%. The marketing focus for Baskin-Robbins has been on frozen beverages and flavors with the majority of markets participating in "Choctoberfest" and "Carnivale" - festivals themed on the famous German Oktoberfest and Mardi Gras respectively. The Dunkin' Donuts focus has been on the core coffee business. Major initiatives were launched in South Korea and the Philippines supporting Dunkins' Original coffee resulting a doubling of sales. Coffee will continue to be a major focus internationally.


(9/02 - 3/1/03)
FY '02
(9/01 - 3/1/02)
QSR Revenues 200.6 192.7 7.9 +4%
% of ADPLC Revenues 7.1% 7.7% 0.6%  
QSR Operating Profits 39.9 34.9 5.0 +14%
% of ADPLC Operating Profits 7.8% 7.7% 0.1  
Total Brand Distribution Points 10753 10328 425 +4%

* Canada included under "Domestic"

About Allied Domecq Quick Service Restaurants
Allied Domecq Quick Service Restaurants franchises nearly 11,000 Dunkin' Donuts, Baskin-Robbins and Togo's stores worldwide. With over 143 years of combined franchising experience, the company's mission is to thrill customers, enrich stakeholders and build powerful brands. ADQSR is also a pioneer in developing and practicing a complementary daypart strategy, which combines two or three of its brands under one roof. Headquartered in Randolph, Massachusetts, ADQSR is part of Allied Domecq PLC (NYSE:AED), a highly successful and dynamic global business in spirits, wines, and quick service restaurants. More information can be found on Allied Domecq QSR's website,

About Dunkin' Donuts
Founded in 1950, Dunkin' Donuts Incorporated is the largest coffee and baked goods chain in the world with 5,400 locations in 32 countries around the world. Dunkin' Donuts sells more regular coffee, donuts, bagels and muffins than any other retailer in the United States. For more information, visit

About Baskin-Robbins
As the world's largest chain of ice cream specialty stores, Baskin-Robbins creates and markets its innovative, high-quality premium ice cream, specialty frozen desserts and beverages in the company's more than 4,700 retail stores around the globe. Baskin-Robbins carries on the tradition of offering spoonfuls of happiness to millions of customers every day. For more information, visit

About Togo's
Togo's originated in San Jose, California in 1971 and today is the neighborhood sandwich shop in more than 400 locations. Each Togo's sandwich is freshly crafted from quality ingredients, resulting in delicious sandwich creations full of big flavor and instant crave-appeal. Togo's signature sandwiches include Hot Pastrami, Turkey & Avocado and BBQ Chicken. For more information, visit


Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on ADQSR's operating results, performance or financial condition are its dependence on franchisees to execute its store expansion strategy, supply issues, competition and numerous other factors.




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