How Dunkin’ Brands Is Expanding Its Business
Operations for Dunkin’ Donuts
At the end of 1Q17, Dunkin’ Donuts, operating under the umbrella of Dunkin’ Brands (DNKN), was operating 12,287 restaurants, which includes 8,884 restaurants in the United States and 3,403 in international markets.
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1Q17 unit growth
In the last 12 months, Dunkin’ Donuts has increased its restaurant count by 454 units, with 384 units in the United Sates and 70 units in international markets. In 1Q17 alone, the company opened 56 new franchised restaurants in the United States and remodeled 81 old restaurants.
Baskin-Robbins’s unit growth
At the end of 1Q17, Baskin-Robbins was operating 7,822 restaurants, which included 2,539 units in the United States and 5,283 units in international markets. In the last 12 months, the brand has increased its restaurant count by 184 units, with 21 restaurants in the United States and 163 in international markets. During the quarter, it opened a new restaurant in the Netherlands.
Dunkin’ Brands’ management expects to open 385 new franchised Dunkin’ Donuts restaurants and ten franchised Baskin-Robbins restaurants in the United States. In its international markets, the company expects to open 200 new franchised restaurants across both brands. At the end of 1Q17, the company reported that it has finalized development agreements for more than 450 restaurants across various regions of the United States.
Next, we’ll look at EBIT (earnings before interest and tax) margins for Dunkin’ Brands in 1Q17.