Yahoo Finance Dunkin' sales improving as coronavirus lockdowns ease
Dunkin' is seeing an uptick in sales as lockdowns to stem the spread of COVID-19 ease around the nation.
Sales throughout U.S. locations that have been open at least a year have increasingly improved within April and May, with stores seeing double-digit sales growth from 11 a.m. to 2 p.m. compared to this time last year, according to a June regulatory filing.
During the week that ended May 23, sales declined 15 percent for open stores that remained open, a significant improvement from a decline of 25 percent a month earlier, Dunkin' Brands Group, Inc, which also owns Baskin-Robbins, reported.
When the outbreak began, Dunkin' was one of the first restaurant chains to close its dining rooms and implement enhanced safety measures. The company limited operations to drive-thru, curbside and delivery only for select locations while some locations closed altogether.
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Lockdowns around the global upended the multinational coffeehouse and donut company's business, which saw a decline of 0.2 percent in global sales within the first three months of the year. The decline, however, is being partially offset by strong drive-thru and mobile app orders across locations within the United States.
"Digital adoption has increased weekly as compelling local and national offers entice guests to join, reactivate, and use DD Perks to make their transactions," the June 3 filing stated.
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As of May 23, approximately 650 out of 9,637 Dunkin' U.S. restaurants were temporarily closed, half of the peak closures in April. The majority of the locations that remain closed are within transportation hubs, on college campuses, and "other alternative points of distribution" the company said.
Dunkin' said last week it is "enthusiastic, but cautious" about reopening dining rooms.
Over the next few weeks, franchisees plan to start reopening a small number of dining rooms in some states that have lifted their stay-at-home orders.
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"While we know guests are looking forward to this happening, it won't happen until we and our franchisees are ready," the company noted at the end of May.
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