In the wake of declining Q2 sales, Dunkin’ Brands Group may close as many as 800 Dunkin’ stores by the end of 2020.
The closures, which include a previously announced planned closure of 450 limited-menu Speedway locations, would represent eight per cent of the Dunkin’ US total restaurant footprint and approximately two per cent of 2019 Dunkin’ US system wide sales, According to Dunkin’ Brands, the closures are part of a real estate portfolio rationalisation, being performed in conjunction with its franchisees, with the goal of setting the US system up for continued strong, profitable future growth.
Dunkin’ US same-store sales dropped 18.7 per cent in the second quarter as a decline in traffic driven by the Covid-19 pandemic was partially offset by an increase in average ticket. However, Dunkin’ said that same-store sales improved sequentially in each month of the second quarter. Forty US Dunkin’ stores, including 10 Speedway locations, closed permanently during the quarter.
Dunkin’ US second-quarter revenues of $134.1M represented a decrease of 19.5 per cent, while US profit dropped about 24 per cent to $96.2M.