NEW YORK – Shares of Dunkin’ Brands fell 10 per cent Thursday after the company said it expects sales to slow from the previous quarter at its doughnut shops.
Sales at Dunkin’ Donut stores open at least a year are expected to grow 1.1 per cent in the third quarter, well below the 2.9 per cent growth that was previously reported.
The company projects customer traffic will slip 0.7 per cent in the third quarter. Dunkin’, which also owns Baskin-Robbins, kept its earnings and revenue outlook for the year unchanged.
The downbeat forecast comes as Tim Hortons, which was recently merged with Burger King, hopes to open more stores in the United States and expand the brand in new markets across the country.
MORE: Canada has yet to reach Peak Tim Hortons, execs say
Dunkin’ Donuts also said Thursday that it plans to close 100 stores in Speedway gas stations this year and next.
Shares of Dunkin Brands Group Inc., based in Canton, Massachusetts, fell $5.07 to $43.93 in Thursday trading. That’s the lowest the shares have traded since early January.
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