Dunkin' Brands Group, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 30, 2017. For the quarter, the company's total revenues were $227,139,000 compared to $215,705,000 a year ago, due primarily to increased franchise fees driven by additional renewal income, offset by a decrease in gross openings. These increases in revenues were offset by a decrease in sales of ice cream and other products, primarily to licensees in the Middle East, as well as a decrease in royalty income due primarily to the extra week in the prior year period and a decrease in refranchising gains. Operating income was $120,126,000 compared to $113,880,000 a year ago. Adjusted operating income was $123,536,000 compared to $119,278,000 a year ago. Operating income and adjusted operating income for the fourth quarter increased $6.2 million, or 5.5%, and $4.3 million, or 3.6%, respectively, from the prior year period primarily as a result of the increase in franchise fees, offset by gains recognized in connection with the sale of company-operated restaurants in the prior year period and a decrease in net margin on ice cream due primarily to the decrease in sales volume and an increase in commodity costs. Also offsetting the increases in operating income and adjusted operating income were expenses incurred to record lease-related liabilities as a result of restaurant closures, as well as the decreases in royalty income and refranchising gains. Adjusted operating income was also unfavorably impacted by an increase in general and administrative expenses. Income before income taxes was $84,863,000 compared to $87,033,000 a year ago. Net income was $195,492,000 compared to $56,120,000 a year ago. Earnings per share diluted were $2.13 compared to $0.61 a year ago. Adjusted net income was $58,354,000 compared to $59,358,000 a year ago, primarily as a result of increases in income tax expense, which excludes the impact of the Tax Act, and net interest expense, offset by the increase in adjusted operating income. Diluted adjusted earnings per share were $0.64 compared to $0.64 a year ago.

For the year, the company's total revenues were $860,501,000 compared to $828,889,000 a year ago. Operating income was $447,002,000 compared to $414,714,000 a year ago. Income before income taxes was $339,287,000 compared to $313,249,000 a year ago. Net income was $350,909,000 compared to $195,576,000 a year ago. Earnings per share diluted were $3.80 compared to $2.11 a year ago. Adjusted operating income was $467,056,000 compared to $436,578,000 a year ago. Adjusted net income was $223,757,000 compared to $208,694,000 a year ago. Diluted adjusted earnings per share were $2.43 compared to $2.26 a year ago. Net cash provided by operating activities was $276,908,000 compared to $276,827,000 a year ago. Additions to property and equipment were $14,606,000 compared to $15,174,000 a year ago.

The company announced long-lived asset impairment charges of $974,000 for the fourth quarter ended December 30, 2017 compared to $45,000 a year ago.

The company expects that its 2018 effective tax rate will be approximately 28%, which reflects the impact from the tax act, net of state taxes and international provisions.