Dunkin' Brands, the company parent of Dunkin' Donuts and the Baskin-Robbins ice cream chain, will close 100 Dunkin' Donuts stores in the United States. The closing of stores will be this year and next as announced Thursday as reported by CNN Money.
A list was not provided by the donut company of what stores are going to be affected. It only said that the stores were all owned by the Speedway gas station and convenience store chain. However, Dunkin' confirmed that closing of the stores represent a tiny fraction of its overall revenue and repeatedly emphasized that plans are already laid out for the opening of new stores in California soon and around the world.
Grant Benson, vice president of global franchising and business development for Dunkin' Brands, added that the stores' closures are not because of poor performance while lowering its outlook for the third quarter at the same time with only 1.1% sales growthas fewer customers purchase donuts and other stuff.
The company met with analysts and investors in New York Thursday reiterated its sales and earnings outlook for 2015. The company didn't give any details on the sales decline filed with the Securities and Exchange Commission, but it did confirm a 0.7% decline in customers at its Dunkin Donut stores as reported by Fox Business.
The company shares over the past three months that have fallen by 20% dropped more than 10% to $43.95 in morning trading. It declared its yearly guidance for adjusted per-share earnings of $1.87 to $1.91 and revenue growth of 6% to 8%. The company has increased its sales and earnings outlook in April, informing that it reflected the impact of its deal with J.M. Smucker Co. and Keurig to sell its Dunkin' K-Cups at retail outlets nationwide.
Dunkin' tries to quicken service at its doughnut shops, redesigning prep stations to be faster to meet busy morning schedules. The company getting most of its sales from breakfast is improving its approach to emphasizing healthier dine and focus more on breakfast sandwiches.
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