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Expect More Than 5% Growth from Dunkin' Brands

Expect More Than 5% Growth from Dunkin' Brands

Dunkin' Brands (NASDAQ: DNKN) is on a mission to weather-proof Baskin-Robbins, promote healthier food and deliver more than five percent growth.

During an interview with CNBC, Dunkin' Brands CEO Nigel Travis said that investors were "delighted" with the company's performance, which includes an EPS increase of 16 percent. Looking ahead, Travis said that the company can achieve its goal of five percent growth, but it is likely to achieve even greater results.

"We want great stores," Travis told CNBC. "It's all about our franchise economics. It's all about relationships."

When asked about the Glazed Donut Breakfast Sandwich, Travis gave a surprising response.

"I have to give huge credit to CNBC [for finding out about it]," he said. "We're testing the doughnut sandwich in a few stores. I didn't even know about it."

Rather than talk about the 20 grams of fat or 360 calories that are packed inside the egg, doughnut and bacon combo, Travis chose to focus on the company's lower-calorie turkey and sausage breakfast sandwich.

"I love it," Travis remarked. "Customers love it. You can eat it and feel good about it."

The Dunkin' Brands chief executive said that his firm is attempting to weather-proof Baskin-Robbins. Part of that strategy involves a push for ice cream cakes, which he believes are "occasion-driven" items that are less affected by the weather.

Finally, Travis denied the challenges that Dunkin' Brands faces when going up against the biggest name in coffee: Starbucks (NASDAQ: SBUX).

"We don't think of Starbucks as our direct competitor," he said.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ


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