Dunkin’ Into New Territory

Dunkin’ Brands (DNKN), which has more than 10,000 locations nationwide and 32,000 in 32 countries around the world, saw an 8.3 percent decline in  first-quarter profits. This is currently due to one-time charges and higher expenses and overhead. Despite the drop in profits, same-store sales results have seen an improvement. Dunkin’ Brands Inc., the parent company of Dunkin’ Donuts and Baskin-Robbins, reported a profit of 22 cents a share, or $23.8 million, an increase from the previous quarter. Total revenue was $161.9 million, a 6.2 percent climb, which was higher than Wall Street estimates of $161 million. Despite the extensive amount of locations both nationally and internationally, the donut, coffee, bagel and specialty coffee chain is expanding west into California, with new stores slated to open in 2015. In addition to expansion, rebranding has also been a mission of Baskin-Robbins, which currently has more than 6,000 ice cream outlets in 49 countries, 2,400 of which are in the United States. In order to alleviate the 4.4 percent decline in same-store sales they’ve been experiencing, the ice cream company has been revamping their loyalty program and has launched a new line of spring cakes. The decline in sales could be attributed to the new frozen-yogurt trend infiltrating the frozen sweet-treats market because Americans are no longer solely concerned with taste, but nutritional content as well. As a result, many ice cream shops are reformatting marketing and branding strategies by rolling out new flavors and utilizing new marketing approaches. Dunkin Donuts is also both retaining relevancy and continuing to evolve by introducing an expanded menu with chicken salads and tuna wraps. “Dunkin’ Donuts has distinguished itself for serving fast, satisfying menu items that can be enjoyed any time. We are committed to finding new and innovative ways to meet the needs of people seeking more variety and more choices in snacks to help get them through their busy days,”  John Costello, Dunkin’ Donuts President of Global Marketing and Innovation, said in a release. “Our new Wraps enhance our popular lineup of bakery sandwiches and baked goods, and offer our guests even more ways to keep running on Dunkin’ whether it’s 8 a.m. or 8 p.m.” With Q1 numbers coming out, brands are continuing to stay on top of their game, choosing to maintain their market advantage by appealing to clients with more offers, better service and a more visible product. For more on how this brand "slam dunked" its 2012 earnings, check out the video below, courtesy of The Street. http://www.youtube.com/watch?v=V3p1d9YjqtI