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In order to improve brand recognition and cater to the changing consumer demand, restaurateurs are upgrading the offerings with the introduction of differentiated value propositions. In keeping with this trend, coffee and baked goods chain, Dunkin’ Donuts owned by Dunkin' Brands Group Inc. (DNKN - Snapshot Report), is focusing on menu innovation as one of its profit-driving strategies.

The restaurateur is strengthening its product portfolio with significant innovation in coffee, and refreshment, and enhancing its core food offerings. The company’s recent addition to its dessert menu is the Banana Chocolate Chip Muffin. Moreover, a new flavor — Salted Caramel Hot Chocolate — has been added to its hot chocolate line-up for the month of January.

The company has stated that customers can now choose from other hot chocolate options like Mint Hot Chocolate, White Hot Chocolate, Dunkaccino and Original Hot Chocolate.

Additionally, the company remains focused on providing healthy food options as consumers now prefer fresh, organic, nutritious and low-calorie menu. Gluten-free offerings are a new addition to the list. Gluten is a protein commonly found in wheat and some other grains. The company has recently added two gluten-free items — cinnamon-sugar doughnuts and blueberry muffins — to its platter.

Dunkin’ Donuts has a Zacks Rank #3 (Hold). Investors interested in the restaurant industry may consider stocks like Fiesta Restaurant Group, Inc. (FRGI - Snapshot Report), The Cheesecake Factory Inc. (CAKE - Analyst Report) and Cracker Barrel Old Country Store, Inc. (CBRL - Snapshot Report). While Fiesta Restaurant sports a Zacks Rank #1 (Strong Buy), The Cheesecake Factory and Cracker Barrel have a Zacks Rank #2 (Buy).

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