Management guidance on unit growth and penetration
There will be 380–410 net new restaurants Dunkin’ Donuts’ (DNKN) U.S. segment. There will be ten net new restaurants for Baskin-Robbins’ U.S. segment. On the international front, the company will add 300–400 net new restaurants combined for the Dunkin’ Donuts and Baskin-Robbins brands.
Wendy’s (WEN) also lowered its full year same-store sales guidance. Wendy’s same-store sales guidance can be found here. However, during its earnings call, Starbucks (SBUX) said that it’s on track to achieve its full year targets.
Management guidance on same-store sales
Management expected a full year same-store sales for Dunkin’s U.S. segment between 3%–4%. However, there was a weak performance in second quarter. As a result, management lowered the guidance to same-store sales between 2%–3% on a full year basis. Management maintained the same-store sales guidance of 1%–3% for Baskin-Robbins U.S.
Tim Hortons (THI) iterated a same-store sales growth range for the U.S. between 2%–4% for the entire year. It remains on track to achieve the same-store sales range.
Dunkin’ also emphasized that it’s focused on growing transactions and traffic in U.S. The growth will come through new platforms. The company will continue to offer trial beverages. It will introduce premium-priced beverages, ramp up its Perks program to drive sales, and work towards improving customer satisfaction scores.
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Management’s guidance on Perks and digital
The company expects the Perks members to grow to 2.5 million. This will be a key growth driver for Dunkin’ Brands Group in the future.
In the next part of the series, we’ll discuss how the markets reacted to this news.