Dunkin’ Brands (NASDAQ:DNKN) is thinking about changing the name of the Dunkin’ Donuts restaurant chain to just "Dunkin’.” The company plans to open a new location in Pasadena, California, with the new name as a test.
“While we remain the number one retailer of donuts in the country, as part of our efforts to reinforce that Dunkin’ Donuts is a beverage-led brand and coffee leader, we will be testing signage in a few locations that refer to the brand as simply ‘Dunkin’” the company said.
This follows news that Dunkin’ Donuts will simply its menus at 1,000 locations by October. Afternoon sandwiches and some bagel and muffin varieties will be eliminated as the company works to make the restaurants “simpler and easier to operate,” according to President David Hoffman.
Dunkin’ Brands chairman and CEO Nigel Travis said that these new choices are a part of a larger strategy to “transform Dunkin’ Donuts U.S. into a beverage-led, on-the-go brand.”
Travis said on Thursday that delivery will dominate the food industry in the coming years. “The whole industry is under some pressure from changing demand,” he said. “Consumers are demanding it instantly, they want it delivered, they’re pressured for time.”
To address this new trend, Dunkin’ Donuts has increased the number of new franchises equipped with drive-through-windows by fifteen percent. The company has also announced a plan to implement curbside pickup at many of its locations.
“We are giving the consumer everything they’re looking for,” Travis said.
Investors seem to be pleased with the direction the company is going. Shares of Dunkin’ Brands rose 2.6% in midday trading on Friday.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
Dunkin' Brands Group, Inc. (DNKN): Free Stock Analysis Report
Original post
Zacks Investment Research