Dunkin’ Brands said on Thursday it would close 100 of its Dunkin’ Donuts coffee and pastry shops, and gave a results forecast that disappointed investors, sending its already suffering share price down sharply.
At its analyst day presentation, which was webcast, Dunkin’ said that it expects a profit of $1.87 to $1.91 a share this year, below the $1.92 analysts expected. That, along with tepid 1.1% growth in same-store sales, spooked Wall Street.
That growth was below what Dunkin’ has posted in recent quarters, and reflects how aggressive the breakfast wars have gotten. McDonald’s is eager to claw back market share (all-day breakfast is coming soon), and Starbucks is expanding its array of pastries. What’s more, Dunkin’s clientele is lower income than Starbucks’, making it more vulnerable to the vagaries of the economy.
For a look at the presentation, which Dunkin’ filed with regulators, click here.
The stores Dunkin’ is closing will shutter in the next 15 months.
In a worrisome development for the company, Dunkin’ stores said the number of visits to its stores last quarter fell 0.7% last quarter. Before the presentations, Dunkin’ shares had been slumping, falling 20% in since June.