Dunkin’ Donuts CEO blames 2016 election for diminished sales and store openings
Apparently, the coffee-fueled presidential campaigns haven’t resulted in a net sales bump for Dunkin’ Donuts.
Or so says the Canton-based company’s CEO, Nigel Travis.
According to Business Insider, Travis reported in an earnings call Thursday that Dunkin’ Brands had surpassed their profits and American same-store sales goals, despite missing revenue expectations. With regards to the latter, Travis pinned the shortfall on uncertainty due to “the overwhelming dampening effect of the presidential election,” among other things.
As BI noted, however, a 2015 Princeton study found that while elections may affect consumers outlook on economic matters, they did not affect their immediate spending.
Furthermore, as The Street reported, Travis said that Dunkin’ Donuts had experienced “record-breaking beverage sales, with double-digit growth in the espresso and iced coffee categories,” in spite of the company’s sluggish 0.5 percent overall sales growth. In the past year, the chain has begun pushing new, fancier coffee drinks, such as macchiatos and cold brew.
Travis also reportedly said Thursday that uncertainty due to the elections also meant the company would hit the “lower end” of their previously estimated range of store openings this year, as franchisees wait to see what future holds with regards to regulations or minimum wage laws.
Franchisees are presumably also holding their breath on whether or not President Donald Trump forces them to redesign their seasonal holiday cups.
“I think we’ll all be pleased when that’s passed,” Travis said of the election.
That’s probably something we all can agree on.
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