During the coronavirus pandemic, most of the restaurant operators have been focused on expanding their digital capabilities. Dunkin' Brands Group, Inc. (DNKN - Free Report) is no exception to this trend. The company has teamed up with DoorDash to provide delivery from 3,500 restaurants across the United States.
Dunkin' Brands has also plans to expand delivery facilities to more restaurants with DoorDash in the coming months. Brandy Blackwell, director of new business, delivery & catering, for Dunkin' U.S. said “Dunkin' guests know they can count on us to offer the most convenient ways to enjoy their favorite coffee and food items. We are excited to kick off the fall season by continuing to expand our delivery footprint, teaming up with DoorDash for yet another way to keep Americans running by delivering their daily Dunkin' order right to their doorstep.”
Digitalization to Drive Growth
The company is growing in terms of its use of digital technology through DD card, DD mobile app, DD Perks rewards program, On-the-Go ordering and delivery. During third-quarter 2019, the company added guest ordering for mobile on-the-go app. These initiatives make Dunkin’ convenient and accessible to customers. It also introduced multi-tender payment flexibility for the DD Perks program, which will provide more choice and convenience to Dunkin's on-the-go guests.
Additionally, the company anticipates a large percentage of Dunkin’ restaurants to open with drive-thrus. This increased emphasis on drive-thrus can be down to the fact that it is a significant part of the company’s strategy to be an On-the-Go brand by offering frictionless experience to guests.
Meanwhile, the company also partnered with Grubhub to create a Dunkin’ delivery system with POS integration. During second-quarter 2020, the company doubled its delivery footprint from 4,000 to 5,000 stores. In May 2020, the company collaborated with Uber Eats. During second-quarter 2020, delivery sales improved more than 250%, and online sales of cakes, quarts and novelties were up more than 150% compared with the prior period. Delivery is now available in 93% of Baskin-Robbins U.S. shops.
Notably, the company’s shares have gained 17.4% in the past three months, compared with the industry’s growth of 13.4%.
Zacks Rank & Stocks to Consider
Dunkin' Brands currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space include Brinker International, Inc. (EAT - Free Report) , Darden Restaurants, Inc. (DRI - Free Report) and Domino's Pizza, Inc. (DPZ - Free Report) . Brinker sports a Zacks Rank #1 (Strong Buy), while Darden and Domino's carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Brinker has a three-five year earnings per share growth rate of 11.4%.
Darden has a trailing four-quarter earnings surprise of 8.1%, on average.
Domino's fiscal 2020 earnings are expected to rise 33.8%.
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