Dunkin Brands Group Inc (DNKN) Tries To Keep Up With A Health Conscious Generation

“It’s worth the trip”. That’s what a Dunkin Brands Group Inc (NASDAQ:DNKN) ad from the 80’s boldly claims. In light of changing times, management at DNKN is still trying to make it ‘worth the trip’. Numerous studies have shown that millennials are more health conscious than their parents and grandparents. Taking note of this, DNKN is attempting to shed its image of an ‘unhealthy’ restaurant to one that caters more effectively to millennials. DNKN recently announced that they would be opening and rebranding a few stores with the name “Dunkin’. Coffee and More” as a marketing experiment. A smart name change for a consumer base that is caffeine loving and sugar wary. The first store piloting this new name opened in Pasadena, California just this past week. The company plans to gauge customer response to the new name and determine whether they should change names all across the nation. This comes on the heels of DNKN missing EPS analyst expectations for all of 2016.NasdaqGS:DNKN Dunkin' Brands Group Past and Future Earnings by Simply Wall St In addition, parent company Dunkin’ Brands Group other subsidiary, Baskin Robbins, expect weak sales as a result of less demand for ice cream and milkshakes. It seems to be a temporary hitch as DNKN quickly recovered and boasted EPS of $2.29 for the most recent quarter, up from the EPS of $1.34 from a year prior. Company management is taking precautionary steps to make sure DNKN doesn’t become the Sears of the restaurant businesses.   To keep pace with consumer preferences, DNKN is not only changing up its name. The company also announced that certain Dunkin’ Donut location were set to receive a slimmed down menu and physical store upgrades to promote brand loyalty. The name change is a big step to make and it’s still tentative. The company stated that no official branding decisions would be made until late 2018, when sufficient data about reactions to the new name could be gathered.
SWS Contributor Shivam Patel has no positions in the stock mentioned above.