American coffee chain Dunkin’ experienced comparable store sales growth of 2.1 per cent in 2019 in the United States, up from 0.6 per cent the year prior. Dunkin’ International, meanwhile, saw comparable store sales growth rise from 2.2 to 5.7 per cent.
Dunkin’ Brands Group, the parent company of Dunkin’ and ice cream chain Baskin-Robbins, added 385 net new Dunkin’ and Baskin-Robbins locations globally, including 211 Dunkin’ locations in the US.
The group’s revenues reached US$1.37 billion in 2019, up 3.7 per cent from the US$1.32 billion the year prior. Net income reached US$242 million, up 5.3 per cent from 2018.
“Our strong performance in 2019 is indicative of the progress we’re making to transform our two beloved brands around the world. All business segments delivered positive comparable store sales growth in the fourth quarter and for the fiscal year, reflecting broad-based momentum across the system,” says Dave Hoffmann, Dunkin’ Brands Chief Executive Officer.
“We had a strong finish to the year, led by Dunkin’ US comparable store sales growth of 2.8 percent in the fourth quarter, the highest quarterly comparable sales growth in six years, fueled by espresso and cold brew sales.”
Hoffman says investment in new equipment has contributed to Dunkin’s high performance. The chain is investing a further US$60 million in high-volume brewers for its franchisees’ restaurants in 2020.
“We are pleased to have delivered on our revenue, operating income, and earnings per share targets for 2019. We also achieved our Dunkin’ US net development goal for the year, exceeded our first-year sales goals for new restaurants, and ended the year with more than 500 new and remodeled NextGen restaurants,” says Kate Jaspon, Dunkin’ Brands Chief Financial Officer.
“We will be exiting 450 limited-menu Dunkin’ Speedway owned and operated locations throughout 2020, closing under a termination agreement entered into with Speedway. These limited-menu locations are lower volume units, in total representing less than 0.5 percent of Dunkin’ US annual systemwide sales. By exiting these sites, with minimal financial impact, we’re confident we’ll be better positioned to serve many of these trade areas in the coming years with new Dunkin’ NextGen restaurants that offer a broader menu.”
In fiscal year 2020, the company expects low-single digit comparable store sales growth for Dunkin’ US. It intends to open 200 to 250 net new Dunkin’ US units, excluding about 450 limited menu Dunkin’ Speedway locations.
