Domestic comp sales at Dunkin’ Donuts were fairly flat in the third quarter, rising 1.1 percent year over year, an increase Dunkin’ Brands CEO Nigel Travis said the parent company is “disappointed in.”
Growth at Dunkin’ Donuts was driven largely by an increase in average check, with strong beverage sales—spurred by the brand’s launch of frozen blended beverages— and donut LTOs leading the charge. Traffic fell by 0.7 percent during the quarter.
“We are working closely with our franchisees to regain transaction momentum through great products, exceptional guest service and innovative marketing," Travis said, noting that the chain remains “on track” to meet full-year projections.
Sister brand Baskin-Robbins saw U.S. comps rise 7.5 percent on growing traffic and increased sales of several menu items, including ice-cream cakes ordered through the chain’s online system, which continue to be a boon to business.
Dunkin’ Brands raised its guidance for Baskin-Robbins’ comps for the fiscal year, expecting domestic growth between 3 percent and 5 percent, up from the 1 percent to 3 percent it earlier anticipated.
Revenues for Dunkin’ Brands increased 8.9 percent year over year, to $154.4 million, due in large part to higher income from royalties and licensing fees.