Sales in stores opened at least a year in the US jumped 2.4% in the first quarter, the company announced Thursday – not bad for an industry with mostly stagnant sales.
Dunkin said sales increased with higher prices for espresso and frozen beverages and strong demand for their breakfast sandwich value offerings.
Overall, sales for the first quarter increased by 5.9% to $ 17.7 million, and analysts lost Wall Street expectations. Dunkin's stock jumped 4% in early trading.
"This quarter was characterized by terrific consumer reception for our new handmade espresso drinks, maintained speed in our national value platform, Go2s, and exciting menu innovation on trend," said CEO David Hoffmann on the earnings call. He said Dunkin's beverages had the strongest turnover increase of nearly three
Dunkin & # 39; s in a particularly tough place with increasing breakfast competition, because morning hours are already the company's busiest time of day.
Dunkin has tried all kinds of cereals, from "better-to-you-Power sandwiches" to "Go2" menus with breakfast sandwiches.
The company said the Go2 program was so successful that it expanded t the temporary offer for a regular menu addition. In the earnings call, Hoffmann said that 75% of those who bought a Go2 deal added a beverage and the average total price was over $ 8. it to several cities.
But the company is struggling with the ice cream business. In the first quarter, sales at Baskin-Robbin's US stores opened for at least one year, sales fell 2.8%. The company said the business is in the "early stages" of a brand upgrade and plans to sell higher foods.