SBUX - Westward Ho for Dunkin' to Fresh Markets and Higher Value
Dunkin' Brands (NASDAQ: DNKN) brewed up a flavorful serving of profits in 2019 with its new beverage-led strategic blueprint, and there are promising signs that the momentum is just beginning. The company is eyeing strong franchise expansion in the western U.S., complemented by its trendy experiments with oat milk and meat substitutes. The strategy isn't without its perils, however, with competition from rivals like Starbucks (NASDAQ: SBUX) and the generally risky environment of the food and beverage market.
Operating in the uncertain, cutthroat, rapidly shifting food and beverage sector, Dunkin' has nevertheless made good progress with its rebranding efforts. Initiated in 2017, the sweeping changes include a beverage-forward approach, with premium espresso and other hot and cold drinks as the new Dunkin' focus in place of donuts, simplified menus, mobile ordering, and new, high-tech store designs and features. The company also began home deliveries via its Dunkin' Delivery in partnership with Grubhub in June 2019.
Image source: Dunkin'.