Dunkin' Welcomes Summer with New Iced Teas - Analyst Blog

Dunkin' Donuts — part of the Dunkin' Brands Group, Inc. DNKN — announced a palate of new menu innovations to delight the senses just in time for spring and summer. This iconic coffee and donuts restaurant has recently launched an iced tea apart from adding seasonal flavors to its popular freshly brewed Iced Tea. These items will be available throughout the summer.

The newest addition to the summer menu — the Iced Green Tea — is a refreshing drink which contains high amount of antioxidants. The iced-tea, featuring the Rainforest Alliance Certified seal, contains 30% tea from Rainforest Alliance Certified farms managed in keeping with meticulous environmental, social and economic standards.

To celebrate the launch, Dunkin' Donuts has donated $50,000 to the Rainforest Alliance — an international non-profit organization that maintains biodiversity to achieve long-term sustainability.

In addition, the iconic coffee and donuts restaurant is offering fresh, fruity flavors such as blueberry, peach and raspberry of its popular Iced Tea. These will be available in both sweetened and unsweetened varieties, with the latter having only 5 calories in a 16 ounce serving.

A recent study by restaurant consultancy Technomic shows that cafes are the fastest-growing segment in the fast-food industry, with sales up 9% last year. In our view, Dunkin' Donuts' seasonal menu offerings will not only tap into the thriving demand for coffee but also bring in seasonal innovations in the platter — an important strategy to remain afloat in the highly competition industry.

In fact, Dunkin' is continuously strengthening its product portfolio with significant innovation in coffee and refreshment, and enhancing its core food offerings. Earlier this month, Dunkin' teamed up with its sister brand Baskin-Robbins to serve iced coffees in different flavors. The new flavors — Cookie Dough Iced Coffee and Jamoca Almond Fudge Iced Coffee — will be available through spring and summer.

Along with these, the immensely popular Butter Pecan Iced Coffee has made a comeback. the company also unveiled the Eggs Benedict Breakfast Sandwich, comprising an egg, Black Forest ham and Hollandaise spread.

Dunkin' Brands Group currently has a Zacks Rank #2 (Buy). Some other better-performing restaurants include Famous Dave's of America Inc. DAVE, The Wendy's Company WEN and Jack in the Box Inc. JACK. All these sport a Zacks Rank #1 (Strong Buy).