Dunkin Brands Group Inc (NASDAQ:DNKN)’s Initiatives Could Drive 2%-4% Growth Of US Revenues

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Dunkin Brands Group Inc (NASDAQ:DNKN) is rolling out multiple initiatives aimed at reviving its growth domestically and internationally in the coming years. A number of those growth initiatives were launched in the latter part of 2015 and they are promising to start showing results this year.

Multi-year partnership with MSG

As part of the efforts to boost domestic sales, Dunkin Brands Group Inc (NASDAQ:DNKN) has agreed with Madison Square Garden Co (NYSE:MSG) that its Dunkin Donuts unit will be the official provider of coffee, breakfast sandwich and baked goods at the MSG arena. The agreement provides Dunkin with an invaluable opportunity to promote its products and drive sales over a long period of time.

Menu shakeup

Dunkin Brands Group Inc (NASDAQ:DNKN) has figured out that it can drive sales by encouraging customers to eat at its stores throughout the day. Normally, Dunkin stores are busy in the morning hours between 4 a.m. and 11 a.m., with the rest of the day remaining quiet. It is during those morning hours that the company generates 60% of store sales. However, Dunkin’s agenda is to make some of its popular menu items available the whole day, almost in the same fashion as McDonald’s Corporation (NYSE:MCD)’s All Day Breakfast program.

To encourage customers to eat at its restaurants throughout the day, Dunkin Brands Group Inc (NASDAQ:DNKN) is in the process of introducing more items in its menu. For example, the company is reintroducing chicken and Apple sausage sandwich.

Not only is Dunkin adding new menu items, the company is also keen on introducing healthy menu alternatives, perhaps hoping to take opportunity of the trend in which people are increasingly seeking healthy and organic foods.

Cage-free ages

Because of the changing customer preferences, Dunkin Brands Group Inc (NASDAQ:DNKN) is also in the process of transitioning to cage-free ages. The idea is to make 10% of eggs in the U.S. menu cage-free by the end of 2016. By 2025, all the eggs in the U.S. menu would be cage-free. The trend will be replicated abroad.

2% U.S. topline growth

If Dunkin Brands Group Inc (NASDAQ:DNKN) succeeds with its various reboot initiatives, the company could drive 2% to 4% growth in its U.S. business over the next five years.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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