Dunkin’ Brand Sales Rose in 3rd Quarter by 8%, Reportedly Spurred by Rebranding Launched in Pasadena

Dunkin’ Brands Group Inc. reports that its sales rose eight percent in the third quarter, driven principally by the execution of a “multi-year plan to transform Dunkin’ Donuts U.S. into a beverage-led, on-the-go brand” that started in Pasadena.

Here, the company set up its first rebranded “Dunkin’” location, dropping the “Donuts” from its signage and ads campaign.

“Dunkin’” opened in August at 275 S Lake Ave. with a focus less on donuts and more on drinks, but the store will still serve its signature product.

“While we remain the number one retailer of donuts in the country, as part of our efforts to reinforce that Dunkin’ Donuts is a beverage-led brand and coffee leader, we will be testing signage in a few locations that refer to the brand simply as “Dunkin’,” the Massachusetts-based company said.

A company statement said revenues for the third quarter increased $17.1 million, from $207.1 million to $224.2 million, or 8.2 percent, compared to the same period a year ago. This is primarily due to increased franchise fees driven by additional renewal income, as well as increased royalty income as a result of systemwide sales growth.

“This past quarter, we demonstrated real progress in the execution of our multi-year plan to transform Dunkin’ Donuts U.S. into a beverage-led, on-the-go brand,” Nigel Travis, Dunkin’ Brands Chairman and CEO, said. “We are encouraged that our morning sales grew at a greater rate than our full-day sales, a direct result of our breakfast value offers and a.m. product innovation.”

Dunkin’s Pasadena location is the of its kind and the first in the San Gabriel Valley overall. Company officials have said that its coffee, breakfast sandwiches, fruited iced teas and frozen coffee products have helped push up the bottom line in the second quarter, without even considering donut sales.

The Pasadena restaurant on South Lake Avenue became the first buildout of the company’s “new store model,” as Kate Jaspon, Dunkin’ Brands Inc.’s CFO, said in a press release in July.