CANTON, MASS. — Bagel promotions and plant-based meat sandwich innovation are two efforts by Dunkin’ Brands, Inc. to boost food sales.
Offering two bagels for $4 helped Dunkin’ achieve its best quarterly bagel sales performance in the second quarter ended June 29, said David L. Hoffman, chief executive officer of Canton-based Dunkin’ Brands, in an Aug. 1 earnings call.
“On a two-year stack, breakfast sandwiches and bagels achieved more than a 15% same-store sales growth,” he said.
Dunkin’ Brands Group, Inc. partnered with Beyond Meat, Inc., El Segundo, Calif., to launch a Beyond Sausage breakfast sandwich at restaurants in Manhattan in New York in July. A national roll-out may follow. The Beyond Sausage breakfast sandwich features a plant-based patty made with peas, mung beans, rice, sunflower oil and coconut oil plus a mix of spices. Dunkin’ prices the sandwich in line with other premium sandwiches, said Tony Weisman, chief marketing officer of Dunkin’ U.S.
“We were helped in part by all the innovation that our friends at Beyond Meat have done,” he said. “They have a very specific stated goal of creating plant-based meat that is in line at a per-oz price the same as animal-based meat.”
Dunkin’ Brands, which also owns Baskin-Robbins, posted net income of $59.6 million, or 72c per share on the common stock, in the second quarter ended June 29, which was down 1.4% from $60.5 million, or 73c per share, in the previous year’s second quarter. A $13.1 million loss on debt extinguishment affected net income negatively. Second-quarter revenues of $359.3 million were up 2.5% from $350.6 million.
Dunkin’ U.S. had comparable store sales growth of 1.7% in the second quarter. An increase in average ticket was offset partially by a decrease in traffic. Segment profit in Dunkin’ U.S. rose 6.3% to $127.1 million from $119.6 million in the previous year’s second quarter. Total revenues increased 5.8% to $166.6 million from $157.4 million.
Dunkin’ International had comparable store sales growth of 5.6% in the second quarter. Segment profit of $5.5 million was up 57% from $3.5 million. Total revenues climbed 42% to $7.5 million from $5.3 million.
Dunkin’ Brands systemwide over the six-month period ended June 29 registered net income of $111.9 million, or $1.35 per share on the common stock, which was up 1.1% from $110.7 million, or $1.31 per share. Six-month total revenues of $678.4 million were up 4% from $652 million.