Dunkin’ expects to close 800 U.S. stores

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Dunkin’ expects to close 800 U.S. stores

By Dan Berthiaume - 07/30/2020

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.