Dunkin’s plan to emphasize beverages and snacks continues to be working. Sales of cold brew, frozen drinks and snacks, like Donut Fries, helped boost sales for the Canton, Mass.-based company in the 3rd quarter.
Now Dunkin’ looks to double down on beverages — it announced a new espresso program yesterday — all while promoting its modern look and name. (That’s Dunkin’, just Dunkin’).
Parent company Dunkin’ Brands saw profit climb 61 percent to $66.1 million, or 79 cents a share, up from $41.2 million, or 47 a share, in the same quarter a year earlier. Revenues increased by 6 percent to $350 million, from $330.1 million in the year-earlier period.
Same-store sales rose at both of the company’s brands: Dunkin’ and Baskin Robbins. The brands saw a 1.3 and 1.8 percent in U.S. comparable-store sales, respectively. Those gains came despite declining traffic at both brands.
“What we've learned is that when we deliver on our brand promise of great coffee fast, we have an unstoppable consumer proposition,” said David Hoffmann, Dunkin’ Brands CEO, during the company’s earnings call Thursday.
“Complementing our beverage line was the launch of the Dunkin' Run platform, a $2 snacking menu that helped drive strong afternoon sales and reinvigorate the afternoon daypart. Donut Fries kick things off launching earlier in the quarter, and quickly became one of the best-performing limited-time offer bakery items in recent brand history.”
Snacks are part of the brand's plan increase more afternoon traffic and sales.
“We know we still have room to grow but the success of the Dunkin' Run lays the foundation for us to compete in the afternoon. When we focus as a system on the afternoon daypart, and expanding our beverage leadership, we can win, it’s the recipe for success that made our snacking platform so effective this past quarter and what will enable future execution of categories such as the espresso and frozen as well.”
Speaking of espresso, much of the company’s previously announced investment of $100 million will be going towards a new espresso program.
Espresso ticks two important boxes for the brand.
“Espresso beverages perform well all day, particularly in the afternoon. They skew younger from a consumer standpoint and are a natural next step in pursuit of our beverage-led strategy,” said Hoffmann.
Currently, there are approximately 12,000 Dunkin' Donuts restaurants and more than 7,000 Baskin-Robbins restaurants worldwide.
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