Leading quick-service restaurant (QSR) chain, Dunkin' Brands Group, Inc. (DNKN - Analyst Report), recently unveiled a Dunkin' Donuts/Baskin-Robbins combo unit in New York City, N.Y. This opening marks its position among the biggest restaurateurs in the city with 500 restaurants.
The unit’s strategic positioning at the Times Square area coupled with its contemporary ambience will likely drive sales, going ahead. In addition to high-quality coffee beverages, the combo restaurant will offer its trademark donuts, breakfast sandwiches, ice creams, cakes and dessert-inspired frozen drinks.
The opening of this unit is in line with the coffee and baked goods chain’s target to add 330-360 restaurants in the U.S. in 2013. This company also aims to double its portfolio by expanding in the lucrative domestic market over the next 20 years. Further, the company will remodel many more outlets in the Americas region in order to capitalize on the strong demand for Dunkin’ Donuts’ products.
Dunkin’ Donuts has undertaken a series of initiatives for brand revitalization such as menu innovation, augmenting the food presentation and service to significantly enhance its operational efficiency and drive its revenues, going ahead.
Dunkin' will launch its loyalty initiative, the DD Perks Program, later this year to enhance value dining as well as improve top line. In this regard, the company entered into an agreement with Alliance Data Systems Corp.’s (ADS - Analyst Report) operating unit, Epsilon, for the technology needed for the Program.
Apart from this, in order to improve its coffee beverage offerings, this Zacks Rank #3 (Hold) company has recently launched Original Blend Iced Coffee K-Cup. Coffee lovers can now sip these Iced Coffee K-Cups at any Dunkin’ Donuts restaurant. These will be available in 14-count packs in several flavors. The launch also reflects the company’s strategy to grow in the iced coffee segment.
Other Stocks to Consider:
Some other restaurateurs that are likely to perform well include AFC Enterprises Inc. and The Cheesecake Factory Incorporated (CAKE - Analyst Report) both carrying a Zacks Rank #2 (Buy).