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Dunkin’ Partners with Grubhub for Nationwide Delivery Rollout

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Jun. 17 2019, Published 12:41 p.m. ET

The announcement

Dunkin’ Brands (DNKN), which owns the Dunkin’ and Baskin Robbins brands, has announced that it has partnered with Grubhub to roll out a delivery service across its Dunkin’ restaurants in the US. According to Yahoo Finance, the company will start offering the delivery service in more than 400 of its Dunkin’ restaurants located in five boroughs of New York starting on June 17.

Speaking with Yahoo Finance, Stephanie Meltzer-Paul, vice president of digital and loyalty marketing at Dunkin’ US, stated that the company has the goal of offering delivery services in more than 3,000—or one-third of—US Dunkin’ restaurants by the end of this year and in ~70% of US Dunkin’ restaurants by the end of the next year.

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Meltzer-Paul further added that Dunkin’ approached Grubhub last year and began testing its delivery service in some select stores in New York City, Boston, and Philadelphia. The average ticket size of the test markets had doubled, so Meltzer-Paul expects the company’s same-store sales and EPS to get a boost as more restaurants offer the delivery service. She also stated that Dunkin’s deal with Grubhub wasn’t exclusive, hinting at a possible expansion of the delivery service to Baskin Robbins as well.

Stock performance

Dunkin’ Brands was trading marginally high in early morning trading on June 17. YTD (year-to-date), the company has returned 25.1%, outperforming the broader equity market. During the same period, the S&P Index has risen 15.2%. Dunkin’ Brands reported its first-quarter earnings results on May 2. The company outperformed analysts’ expectations during the quarter.

You can read our analysis on Dunkin’ Brands’ first-quarter performance in Dunkin’ Brands Beats Top-Line and Bottom-Line Estimates in Q1. Dunkin’ Brands’ peers Starbucks (SBUX) and McDonald’s (MCD) have returned 30.8% and 15.6% YTD, respectively.

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