Dunkin’ expects to close 800 U.S. stores
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 8% of the Dunkin' U.S. total restaurant footprint and approximately 2% of 2019 Dunkin' U.S. systemwide sales, According to Dunkin’ Brands, the closures are part of a real estate portfolio rationalization, being performed in conjunction with its franchisees, with the goal of setting the U.S. system up for continued strong, profitable future growth.
Dunkin' U.S. same-store sales dropped 18.7% 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 U.S. Dunkin’ stores, including 10 Speedway locations, closed permanently during the quarter.
Dunkin' U.S. second-quarter revenues of $134.1 million represented a decrease of 19.5%, while U.S. profit dropped about 24% to $96.2 million.