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Dunkin' Brands (DNKN) Boost Delivery Service With Grubhub

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In a bid to expand delivery services across New York, Dunkin' Brands Group, Inc. has announced an expansion of the brand's partnership with Grubhub Inc. (GRUB). This nationwide delivery plan was first launched in New York City in June 2019.
With this expansion, the company intends to connect customers with more than 800 participating Dunkin' restaurants across Connecticut, Long Island, New Jersey, New York City and Westchester. Dunkin’ Brands will offer delivery services through Grubhub as well as the company's New York-specific brand — Seamless. Moreover, to smoothen the operational experience, Grubhub has integrated into Dunkin's point-of-sale (POS) systems to provide speedy, accurate deliveries.

Stephanie Meltzer-Paul, Vice President of Digital and Loyalty Marketing for Dunkin' U.S. stated, "We've been encouraged by the positive guest response to the Dunkin' Delivers service launch in New York City back in June, and look forward to expanding in the market to keep Metro New York residents running on Dunkin' wherever they are."

Enhanced Delivery & Strong Digitalization Bodes Well
Considering rapid digitization in U.S. fast-casual restaurant sector, an increasing number of restaurants are deploying technology to enhance guest experience and drive traffic.

Notably, Dunkin’ Brands 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. It also introduced multi-tender payment flexibility for the DD Perks program, which will provide more choice and convenience for Dunkin's on-the-go guests. These initiatives make Dunkin’ Brands more convenient and accessible to customers.

Furthering its delivery program, the company also expanded its delivery service to Miami, in partnership with DoorDash, in February 2019. Dunkin’ Brands covers more than 70% of Baskin-Robbins stores across the United States. Also, the company expects to see a larger percentage of Dunkin’ restaurants to open with drive-thrus, making it part of the company’s strategy to provide frictionless experience to guests.

Price Performance

Shares of the company have declined 4.4% in the past year against the industry’s growth of 5%. The decline was primarily due to dismal sales at Baskin-Robbins International. Moreover, soft consumer spending environment, challenging international markets and a downward shift in ice cream consumption have been adding to the downside.

Zacks Rank & Key Picks

Dunkin' Brands currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the same space are Cracker Barrel Old Country Store, Inc. CBRL, Brinker International, Inc. EAT, and Chipotle Mexican Grill, Inc. CMG. Cracker Barrel sports a Zacks Rank #1, while Brinker International and Chipotle Mexican Grill carry a Zacks Rank #2 (Buy).
Cracker Barrel has trailing four-quarter positive earnings surprise of 7.8%, on average. The company’s earnings beat the Zacks Consensus Estimate in all of the last four quarters.

2020 earnings for Brinker International is expected to rise 10.2%.

Chipotle Mexican Grill has an expected three-five year earnings per share growth rate of 19.3%.

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