It seems like the StarBucks Corporation (Nasdaq SBUX) will finally have a viable competitor.The statistic that I found amazing is that 68% of Dunkin Donut's revenues come from coffee. Maybe it's time to rename Dunkin Donuts?
Beverages currently account for 63 percent of Dunkin's domestic sales and since 2000, sales of its espresso products alone have jumped 68 percent.This makes it look alot more like Starbucks than Krispy Kreme Donuts (NYSE KKD), the erstwhile purveyor of sweetened dough. Dunkin' Donuts is planning a huge launch.
They even have a Dunkin' Donuts in Riyadh, Saudi Arabia
About a year ago, Dunkin’ Donuts enlisted the creative help of Hill Holiday, a Boston, Mass.-based advertising firm, and in April 2006, the company launched an all-out print, broadcast, and online advertising campaign. Dunkin’ officials called it "the most significant repositioning effort in the company's 55-year-history." With this campaign and an expansion plan that pits Dunkin' Donuts head-to-head -- and side-by-side on some city blocks -- with Starbucks, the fast food chain has not only become the nation's largest seller of brewed coffee through fast-food outlets, but it is quickly rewriting the definition of coffee.Dunkin' Donus plans to triple its store base.
Last September, the Canton, Mass.-based chain announced an expansion plan to bring the brand, and the increasingly saleable coffee, to the national level. The Dallas Morning News reported in July that Dunkin' Brands (the parent company of Dunkin' Donuts, Togo's and Baskin-Robbins) plans to more than triple its store count from 4,800 to about 15,000 nationwide by 2015. Rodriguez would not confirm those figures, but says the company plans "$10 billion in sales by 2010."Why the sudden urge for growth? It's owned by three private equity firms, Bain Capital Partners, the Carlyle Group and Thomas H. Lee Partners who I'm sure bought it for more than just out of charity.