America may not run on Dunkin’ after all.
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Shares of Dunkin Brands Group Inc (NASDAQ:DNKN) traded down 10.73% during midday trading on Thursday, hitting $43.74.
Dunkin’ Donuts has announced that the company will be shutting 100 Dunkin’ Donuts locations in the coming months due to declining sales growth.
Analysts on average were expecting earnings of US$1.92 per share, according to Thomson Reuters.
And it issued earnings guidance for the year that was a bit below Wall Street’s consensus estimates. The business had revenue of $211.40 million for the quarter, compared to analysts’ expectations of $204.21 million.
Revenue, Dunkin’ said, will grow 6 to 8 percent from the previous year. They also said new pricing increases might have been too aggressive for customers. The move backfired, and Dunkin’ will probably bring back a few of those drinks. Presumably, Dunkin’ will also continue to focus on expanding its sales outside of traditional breakfast hours. What’s hampering the fast-food breakfast chain? The company touted new products like a Pumpkin Macchiato and Maple Bacon Square Donut.
It’s unclear when deliveries might be available in Massachusetts. The actual number was $0.02 off from the Zacks consensus number calculated immediately prior to the release of earnings, or a surprise factor of 4.17%.
In the meantime, there are unofficial ways to get Dunkin’ delivered.
He stressed that Dunkin’ was taking steps to improve its menu offerings in order to boost sales.
Sales at Dunkin’ Donut stores open at least a year are expected to grow 1.1 per cent in the third quarter, well below the 2.9 per cent growth reported in its last quarter.
Dunkin’ Brands Group, Inc.is a franchisor of quick service restaurants (NASDAQ:DNKN) serving hot and cold coffee and baked goods, as well as tough serve ice cream.
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Nigel Travis said on an investor webcast Thursday. A tighter labor market is also making it harder to hire restaurant workers, he said.
