Dunkin' Donuts to shut 100 stores

Dunkin’ Donuts to shut 100 stores

Dunkin’ Donuts to shut 100 stores

Shares of Dunkin ‘Brands, parent company of Dunkin’ Donuts and Baskin-Robbins, have plunged 12.24% on Thursday, causing its worst drop since its IPO in 2011.

The price per share Thursday was at $ 43 each on the New York Stock Exchange, diluted, in the beginning of the session, which had won 15% until last Wednesday, reports CNN.

It seems that investors in the US stock market did not like that the annual forecast earnings reach the first estimates of analysts, nor the announcement that Dunkin ‘Donuts will close 100 stores between 2015 and 2016.

The company issued a statement Thursday in which it reported that earnings this year will be between 1.87 and 1.91 dollars per share, below the $ 1.92 they expected the experts.

In addition, the company has also reflected fewer sales this quarter compared to expectations (1.1% from July to September compared to 2.6% of analysts).

The crisis deepens

The fast-food company also announced that its plans is the closing of at least 100 of its stores next year.

However, he did not detail what facilities would be closed, but said that they represent only a fraction of the revenue of the company.

Plans to open new locations in California were also reported.

President of Dunkin ‘Donuts for the United States and Canada, Paul Twohig, said the company was disappointed with sales in the United States and is working to improve its menu as a formula to increase sales.

The company also expressed concern about increases in minimum wage across the country, including $ 15 an hour in New York for workers in fast food chains.