Dunkin Brands Keep Running: CEO
Not only are doughnuts and ice cream delicious, for Dunkin Donuts brands', they represent a “jewel of a growth story,” the company’s CEO, Nigel Travis, told CNBC .
“Our guidance this year is that we'll open over 600 new stores globally, so growth is very important to us,” the CEO of the company that owns Dunkin Donuts and Baskin Robbins said on Thursday.
The U.S. remains its biggest market, while Korea is its biggest international market. But there’s still plenty of growth in the U.S., Travis said. “We're not even 50 percent built out in the U.S., so it’s huge white space there,” he said, adding that the economics of new stores in the West are “very attractive.” (Related: Starbucks Weakness Could Trigger Rotation Trade).
Dunkin's brands continue to grow internationally as well. “We have over 1,100 Baskin Robbins in Japan,” Travis said. “China is exciting. We went into India this year. Latin America is doing great.” Even Europe is an opportunity, the CEO said. (See: Dunkin' Brands Stock Down).
Dunkin' is also taking aim at Starbucks with a new mobile app. In early August, Starbucks teamed up with Square and will start accepting mobile payments from Square’s app in addition to its own Starbucks payment app. (Read More: Will Starbucks, Square Take Mobile Payments Mainstream?).
Dunkin' now has an app that lets you pay with a virtual Dunkin’ card. “It's an app that means that you can go into our stores and pay even quicker with a Dunkin' card,” Travis said.
Individual companies may still eventually sign up with electronic payment system vendors to accept mobile payments. “You'll have both,” Travis said. “I think you'll have consolidated vendors and individual apps like ours.”
- By CNBC's Justin Menza