Back to top

Analyst Blog

It seems Dunkin' Brands Group Inc. (DNKN - Snapshot Report) is keen to make the most of technology these days, signing back-to-back deals with several tech-driven and analytics companies to enhance its operational efficiency and guest satisfaction. Yesterday, this coffee and baked goods chain cut a deal with Epsilon, a division of Alliance Data Systems Corp. (ADS - Analyst Report). Per the deal, Epsilon will provide Dunkin' with the technology needed to spur Dunkin' Donuts' new loyalty initiative -- the DD Perks Program – slated to be rolled out later this year.

Earlier, Dunkin' inked a deal with ATM and POS manufacturer, NCR Corp. (NCR - Analyst Report). Per the deal, Dunkin’ will be using the NCR Vitalcast digital signage solution across multiple locations in the US to create visually attractive animation and messaging targeting prospective customers. Using this technology, the restaurant owner can improve customer satisfaction to a considerable extent.

Of late, restaurants are responding to heightened competition in a somewhat over-supplied domestic market in a variety of ways. Loyalty programs and social media are have emerged as popular marketing tools. Restaurateurs are offering loyalty programs at their units to enhance value dining as well as improve sales. These initiatives are intended to boost customer presence as they are spending less enthusiastically on dining and at the same time seeking incentives for doing so.

While Epsilon is a leader in the loyalty marketing space, providing end-to-end, integrated direct marketing solutions that combine database marketing technology and analytics, NCR has been instrumental in offering value added solutions to its clients. We believe, choosing two industry leading solution providers will be beneficial for Dunkin’ - a Zacks Rank #3 (Hold) company - going forward.

Another restaurant operator, Domino's Pizza Inc. (DPZ - Analyst Report) has also been adopting technology-backed initiatives like digital ordering to boost its sales for the past three years. Digital ordering is consistently increasing at the rate of about 5% a year. The effort appears to be paying off as Domino’s generated over $2 billion in digital sales globally in 2012, thus becoming one of the top technology-driven brands across the globe.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 114.88 +6.34%
US SILICA H… SLCA 70.17 +3.19%
MALLINCKROD… MNK 79.96 +2.13%
PLANAR SYST… PLNR 5.03 +1.82%
LANNETT COM… LCI 39.95 +1.60%