DNKN - Dunkin's Beyond Sausage Sandwich Pays Off In Solid Q4 2019 Gains
Jumping in with both feet while many of its competitors were still dipping a cautious toe in the uncharted waters of plant-based breakfast "sausage" patties, Dunkin' Brands (NASDAQ: DNKN) rolled out the Dunkin' Beyond Sausage sandwich at 9,000 of its locations last November. Fans of the new food seem willing to drop more money at the restaurant each time they visit thus far, which could be good for Dunkin's bottom line into the future, assuming it can keep up the momentum.
Dunkin' moved aggressively into meatless breakfast sandwich menu items in late 2019, following brief midyear testing in New York City. The company partnered with Beyond Meat (NASDAQ: BYND) to offer the plant-based food alongside traditional pork sausage sandwiches. Featuring a hexagonal patty made of a slew of different proteins -- from pea and rice to mung bean and sunflower -- some reviewers online think Beyond Sausage tastes very close to the real thing, though a bit softer and less juicy.
According to CEO David Hoffman during the Dunkin' Q4 2019 earnings call, orders including the new breakfast item rang up almost double the restaurant's average $5 purchase, at more than $9 per meal. Customers typically pair the sandwich with one of Dunkin's trendy high-priced espressos or other beverages from the top end of its menu. This is a major factor in making Beyond Sausage orders more profitable for the restaurant. Though the company didn't release exact sales figures, Hoffman said on the call that the Beyond Sausage sandwich fueled lots of sales from both new and returning customers.