Dunkin’ Brands’ Q3 FY’16 Earnings Preview: Weakness In Comps To Continue
Key Trends:
- Continued weakness in the company’s international segments due to foreign currency headwinds and sales declines in South Korea and Europe.
- With anemic growth in comps, the company is depending heavily on store expansion in the U.S. by signing new store development agreements with franchisees in Phoenix, Alabama, and Georgia.
- The deal with Coca-Cola to launch ready to drink coffee in 2017. This is a step undertaken by Dunkin’ to compete with Starbucks in the segment, and to tap into the $1.5 billion ready to drink segment. As the bottled iced coffee will be made available at grocery, convenience stores, mass merchandisers, and Dunkin’ Donuts restaurants, the company can expect to see an improvement in brand visibility and incremental visits to its restaurants.
- Highlighting the “health factor” in its food, by evolving its menu to improve the quality and taste by introducing higher quality better tasting eggs, reformulated bagels, and revamping its bacon.
- Leveraging off the dissatisfaction among customers regarding changed Starbucks loyalty program by highlighting its own Dunkin’ Donuts Perks program.
- By partnering with customer relation management firm, Salesforce, Dunkin’ hopes to make its DD Loyalty Program more popular. The ability to offer personalized, one-to-one customer experiences across digital channels, by way of exclusive, personalized special offers to earn bonus points for food and beverage purchases, targeted to the individual customer’s purchasing profile, the company can expect to see growth in the number of users, and thus, revenues.
Have more questions on Dunkin’ Brands (DNKN)? See the links below.
- Dunkin’ Brand’s Five-Pronged Strategy Paves The Way For Future Growth
- Breakfast Sandwiches, Coffee Sales Lead Dunkin’ To Profitability In Q2’16, Even As The International Segments Suffer
- Dunkin’ Brands’ Q2 FY’16 Earnings Preview: Product And Digital Innovation To Support Earnings
- Dunkin’ Brands To Enjoy Robust Revenue Growth In 2016, Despite International Segments Struggling in First Quarter
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- Dunkin’ Brands’ Q1 FY’16 Earnings Preview: All Eyes On Comp Sales Growth Of International Segments
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