What is in this article?:
- Domestic growth helps drive 3Q traffic, sales at Dunkin'
- Focusing on expansion goals
The company recorded its 14th consecutive quarter of same-store sales growth in the U.S.
Focusing on expansion goals
During the quarter, the company saw the opening of 81 net new Dunkin’ Donuts locations in the U.S., including the first two in Denver.
Travis said the company now has development agreements for 70 units in Southern California, where stores will begin opening in 2015. Now markets in Central California are open for development, including Fresno, Bakersfield, Sacramento and Santa Barbara.
Texas is another state with significant growth potential, said Travis, adding that Dunkin’ Donuts could reach 1,000 in that state alone. The company has a joint-venture agreement with Dallas Cowboys owner Jerry Jones and celebrated quarterback Troy Aikman to grow the donut chain there.
Travis reiterated his goal of reaching 15,000 locations in the U.S., including at least 5,000 in the west and 3,000 east of the Mississippi River.
The Baskin-Robbins brand also had strong results in the U.S., with a 3.2-percent same-store sales increase. The ice cream chain is shifting into slow growth mode with one net new store opening during the quarter after years of store count declines, Travis said.
Internationally, however, the company swung to a loss for the segment because of $3.7 million in write-downs related to investments in the Dunkin’ Donuts Spain joint venture.
The company closed about 40 Dunkin’ Donuts units in China this year, including 19 in Taiwan, where the company is consolidating its store base and repositioning the brand to restart business there.
“We are absolutely focused on getting China right in the short term and continue to strongly believe that there is long-term opportunity for the Dunkin’ Donuts brand in China,” said Paul Carbone, Dunkin’ Brands’ chief financial officer.
Baskin-Robbins’ sales in Japan also suffered because of “strange weather” with multiple monsoons.
Worldwide, the company opened 222 net new units between the two brands during the quarter and expects to reach its goal of adding 330 to 360 locations before the end of the year.
Canton, Mass.-based Dunkin’ Brands is franchisor to nearly 10,800 Dunkin’ Donuts restaurants and more than 7,100 Baskin-Robbins locations worldwide.