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Dunkin's CEO Says It's Difficult For McDonald's To Do All-Day Breakfast

Dunkin's CEO Says It's Difficult For McDonald's To Do All-Day Breakfast
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In an article published Thursday, TheStreet analyst Brian Sozzi mentioned that Dunkin Donuts of Dunkin Brands Group Inc (NASDAQ: DNKN) had withstood the "breakfast wars" with another quarter of strong breakfast food sales.

US same-store sales grew 2.7 percent, up from 1.4 percent in the fourth quarter. This marked the best same-store sales performance since 4Q13, according to Bloomberg data. The company's adjusted EPS came in at 40 cents, versus analyst estimate of 35 cents, while revenues were at $185.9 million, as compared to the estimate of $180.7 million.

"We were delighted with our beverage growth, which is the highest margin products that there are for franchisees," said Dunkin Donuts CEO Nigel Travis in an interview with TheStreet. "During the quarter, we introduced a number of new products, and they came out very well."

The Taco Bell division of Yum! Brands Inc (NYSE: YUM) and McDonald's Corporation (NYSE: MCD) "aggressively jockey for position in the breakfast wars," Sozzi said, while adding, "Breakfast now comprises roughly 6% of Taco Bell's business, compared with 25% for McDonald's U.S. operation."

In the article TheStreet noted, "Travis was quick to provide a bit of perspective on Taco Bell's maneuvers, however, and a word of caution to McDonald's. "I don't think Taco Bell impacts us directly, I think it impacts McDonald's, and that probably indirectly impacts us," Travis said. "The question is how much does McDonald's go after breakfast.""

"Travis noted that McDonald's has been testing all-day breakfast, but it's not that easy to operate," Sozzi wrote.

Latest Ratings for DNKN

Oct 2016RBC CapitalDowngradesOutperformSector Perform
Sep 2016Credit SuisseMaintainsOutperform
Sep 2016CitigroupMaintainsBuy

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