Dunkin' Brands tops third-quarter estimates thanks to beverage-led strategy
Dunkin’ Brands Group beat analysts’ estimates in its third quarter, thanks in part to strong beverage sales and new product innovation.
The news comes as the American firm prepares to rebrand its flagship brand to Dunkin’ to reflect its shift towards the coffee and drinks market.
Comparable stores sales at Dunkin’ US rose 1.3% whilst Baskin-Robbins saw a 1.8% increase.
The firm also added 77 net new Dunkin’ and Baskin-Robbins sites globally, including 52 net new Dunkin’ locations in the US.
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Chief Executive Officer and President of Dunkin' US, David Hoffmann, praised the company's simplified branding, its beverage led-strategy as well as its strong franchisee relationships.
He said: "For the third quarter of 2018, we delivered positive comparable store sales for all four of our business segments.
“Dunkin' U.S. comparable store sales growth was led by strong beverage sales, coupled with new product innovation, and the Dunkin' Run snacking platform which delivered our highest afternoon comparable store sales growth in more than two years"
The company reaffirmed that it would be investing around US$100mn into Dunkin’ US, with a substantial amount being invested into equipment such as espresso equipment to expand its beverage portfolio.
Dunkin’ Brand said that it would also be channelling more funding into digital initiatives. For instance, the firm plans to remodel stores to make them better suited to mobile ordering and payments
"We are also pleased to have completed our previously announced $650 million accelerated share repurchase program during the third quarter, demonstrating our continued commitment to utilising our strong balance sheet to return capital to shareholders,” added Kate Jaspon, Dunkin' Brands Chief Financial Officer.