×

Dunkin Brands CEO: Concerns about stock price overdone

Shares of Dunkin Brands fell Thursday after the chain reported revenue that missed expectations, but CEO Nigel Travis told CNBC those concerns are "overdone."

In fact, he said Dunkin is a "development machine."

"If you compare us to everyone else in our industry with the exception of Starbucks … we are clearly a strong No. 2. We continue to open stores at very high rates. We continue to bring jobs into the sector," Travis said in an interview with "Closing Bell" on Thursday.

"So I think the concerns on the stock price have been overdone. We feel confident about the future. In fact, I feel more confident today than I did last quarter because our strategy is right on track."

Before the bell Thursday, Dunkin reported total sales fell 1.3 percent to $207.1 million. Analysts had expected total fiscal third-quarter sales of $214.4 million, according to Thomson Reuters.

However, the company beat earnings expectations, reporting profit of 60 cents per share, excluding items. Analysts had expected earnings of 59 cents a share.

Travis called it a "tremendous" quarter.

Sense uncertainty

Meanwhile, there is also a sense of uncertainty right now, which Dunkin franchisees have expressed some concern about, he said.

He attributed it to a "cocktail of factors," including the presidential election.

"People want to have certainty about the economy. They want to know who is going to be in government, who is going to be in the Senate, who is going to be in the Congress," Travis said.

There have also been changes in consumers' habits, like going online for experiences and eating at home more so than in the past, he added.

— Reuters contributed to this report.