Dunkin' Sales Warm Up Despite Frigid Winter

Dunkin' Sales Warm Up Despite Frigid Winter
Image credit: Monica Dipres

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The cold doesn't bother Dunkin' Brands anyway.

On Thursday, the Canton, Mass.-based parent company of Dunkin' Donuts and Baskin-Robbins reported revenue increased 8.1 percent in the first quarter, reaching $185.9 million, well above expectations of $180.7 million predicted by analysts polled by Thomson Reuters.

The growth was driven in part by Dunkin' Donuts U.S. same-store sales, which increased 2.7 percent. Also key was Dunkin's deal with Keurig and Smucker's that allowed the company to sell Dunkin' K-Cup at grocery stores, retail outlets and online for the first time.

Related: 6 Things to Expect From McDonald's Secret Turnaround Plan   

Dunkin' Brands CEO Nigel Travis noted in a statement that the company is delighted about its performance “given the severe weather that we experienced in many of the markets. Our Dunkin' Donuts U.S. franchisees got the year off to a strong start by demonstrating great flexibility and resiliency in dealing with the challenging circumstances."

As about half of Dunkin' Donuts shops are located in the snowy Northeast -- unlike the West coast-centric Starbucks -- some analysts expressed concerns regarding the chain's ability to attract customers during an extraordinarily severe winter. However, franchisees and customers apparently remained dedicated to coffee despite the weather -- something that will come as no surprise to anyone who has seen a New Englander sipping a Dunkin' iced coffee in sub-zero temperatures. 

Related: Yum Invests $185 Million in Modernizing KFC Franchises

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