Dunkin 'could be the next McDonald's



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. Photographer: Patrick T. Fallon / Bloomberg

&copy; 2017 Bloomberg Finance LP

Dunkin'is is a very small company compared to McDonald's, both in number of stores and in revenue. But he shares with the franchise giant a significant competitive advantage: the location.

Exploiting this advantage could help it replicate McDonald's success in adopting and adapting to new consumer trends.

The first mover, Dunkin'Donuts has acquired prime real estate locations for its stores – railway stations, airports and monuments. Sometimes side by side with McDonald's.

It is therefore sufficient that Dunkin 'offers the right business model to exploit its location advantage, even if this model means that the franchise must remove the logo Donuts logo.

This has led to the next advantage of society – the ability to adopt and adapt; Essentially, new product menus and new services to capitalize on emerging trends and effectively compete.

To compete with Starbucks, for example, Dunkin 'expands & nbsp;its beverage menu by adding new lines of fruit juice, iced coffee and espresso.

Dunkin's Income, McDonald's and Starbucks

Koyfin

To compete with McDonald's all-day breakfast, Dunkin 'has expanded its breakfast menu. In addition to bagels, a few years ago, Dunkin 'added Donut Fries, Ham & amp; Cheese rolls, pretzel bites & amp; Mustard, Breaded Waffles, Chicken Tenders, Brownie Fudge, White bowl of egg, blurred bowl.

While adding new products to the menu to meet new consumer trends, Dunkin 'has also removed menu items.& nbsp;

This is how the company managed to offer the smallest menu, compared to McDonald's and Starbucks – see table.

Business Number of stores Number of items on the menu
Dunkin & # 39; 12,500 32
Starbucks 26,696 255
McDonalds 36,000 145

In turn, a lighter menu offers the company an added benefit in terms of employee training and the use of store facilities (ovens, storage space, refrigeration, etc.).

Dunkin's strategy is paying off. This week, the company beat the estimates with a decent margin.

Jeff Yastine, Senior Equity Analyst at Banyan Hill Publishing, loves stocks. "There is a lot to like about this company for future growth and Starbucks' loss of market share," says Yastine. She continues to protect her main product groups, such as her breakfast foods, with innovations such as discounted dishes and high-value specialty drinks, such as "Irish Cream Coffee". , to its customers. "

Dunkin shares, McDonald's and Starbucks since the beginning of the year

Koyfin

Dunkin ', McDonald's and Starbucks Gross Margins

Koyfin

Dunkin's strategy for adopting and adapting to change is very similar to McDonald's. In its early days, McDonald's adopted a quick and convenient menu to meet the needs of the baby boomer generation in catering.

Later, & nbsp; she & nbsp; has adopted a global menu, transferring the American way of life to many countries around the world. And, more recently, he has adopted a more "healthy" and "more natural" menu.

Always, capitalizing on its location advantage; always coming back after a brief pause during the transition; and generously rewarding long-term investors.

This could be the case for Dunkin '.

Disclosure: I own Dunkin shares & # 39;

& nbsp;

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. Photographer: Patrick T. Fallon / Bloomberg

© 2017 Bloomberg Finance LP

Dunkin'is is a very small company compared to McDonald's, both in number of stores and in revenue. But he shares with the franchise giant a significant competitive advantage: the location.

Exploiting this advantage could help it replicate McDonald's success in adopting and adapting to new consumer trends.

The first mover, Dunkin'Donuts has acquired prime real estate locations for its stores – railway stations, airports and monuments. Sometimes side by side with McDonald's.

So Dunkin 'just has to come up with the right business model to exploit its localization advantage – even if this model means that the franchise has to remove the Donuts logo from its logo.

This has led to the next advantage of society – the ability to adopt and adapt; Essentially, new product menus and new services to capitalize on emerging trends and effectively compete.

To compete with Starbucks, for example, Dunkin 'expands its beverage menu by adding new lines of fruit juice, iced coffee and espresso.

Dunkin's Income, McDonald's and Starbucks

Koyfin

To compete with McDonald's all-day breakfast, Dunkin 'has expanded its breakfast menu. In addition to bagels, a few years ago, Dunkin 'added ham and cheese frit donuts, pretzel and mustard bites, waffle breadcrumbs, chicken fillets and fudge brownies., White bowl of egg, blurred bowl.

While adding new products to the menu to meet new consumer trends, Dunkin 'has also removed menu items.

This is how the company managed to offer the smallest menu, compared to McDonald's and Starbucks – see table.

Business Number of stores Number of items on the menu
Dunkin & # 39; 12,500 32
Starbucks 26,696 255
McDonalds 36,000 145

In turn, a lighter menu offers the company an added benefit in terms of employee training and the use of store facilities (ovens, storage space, refrigeration, etc.).

Dunkin's strategy is paying off. This week, the company beat the estimates with a decent margin.

Jeff Yastine, Senior Equity Analyst at Banyan Hill Publishing, loves stocks. "There is a lot to like about this company for future growth and Starbucks' loss of market share," says Yastine. She continues to protect her main product groups, such as her breakfast foods, with innovations such as discounted dishes and high-value specialty drinks, such as "Irish Cream Coffee". , to its customers. "

Dunkin shares, McDonald's and Starbucks since the beginning of the year

Koyfin

Dunkin ', McDonald's and Starbucks Gross Margins

Koyfin

Dunkin's strategy for adopting and adapting to change is very similar to McDonald's. In its early days, McDonald's adopted a fast and convenient menu to meet the needs of the baby boomer generation in catering.

Later, he adopted a global menu, transferring the American way of life to many countries of the world. And, more recently, he has adopted a more "healthy" and "more natural" menu.

Always, capitalizing on its location advantage; always coming back after a brief pause during the transition; and generously rewarding long-term investors.

This could be the case for Dunkin '.

Disclosure: I own Dunkin shares & # 39;

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