In early September, New York State approved a measure to increase the minimum wage for employees of fast-food chain restaurants in the state to $15 an hour over the next few years. Equities research analysts anticipate that Dunkin Brands Group Inc will post $1.92 EPS for the current year.
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Even though Dunkin’ Donuts locations are open throughout the day, business has always been especially busy during mornings as customers stop in for coffee and donuts on the way to work. The company noted a 0.7% decline in traffic at its Dunkin’ Donuts stores.
The news sent the company’s stocks tumbling 12 percent.
What: Shares of Dunkin’ Brands Group (NASDAQ:DNKN) were down 11% as of 11 a.m. Thursday after the doughnut and coffee specialist issued disappointing forward guidance during its 2015 investor and analyst day.
Wall Street Analysts have given a mean estimate of $ 0.59 earnings per share to Dunkin Brands Group Incorporated. McDonald’s has announced plans to add an all-day breakfast menu to its restaurants, while Starbucks will be offering a larger assortment of breakfast pastries.
Here’s a chart showing the plunge in shares on Thursday.
Dunkin’ Donuts USA and Canada president Paul Twohig said the company was disappointed with US sales and that it is working on improving its menu as a way to boost sales. The Company franchises restaurants under its Dunkin’ Donuts and Baskin-Robbins brands. Dunkin’ will also be testing delivery in the Dallas market in Q4. And while Dunkin’ has said its rewards program is helping sales, it still trails Starbucks Corp.’s loyalty program, which boasts 10.4 million active US members.
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While the company did not disclose which stores would be closing, it did reveal that the affected stores are all owned by the Speedway gas station and convenience store chain, according to True Jersey. They also touted a new mobile ordering platform set for 2016 and the launch of Apple pay; which will be available at the beginning of 2016.
