The rise of American doughnuts
Dunkin' Brands and Krispy Kreme are expanding overseas. Will other countries embrace their sugary treats?
Dunkin' Brands (DNKN), which operates in 31 countries, is about to re-enter the U.K., which it exited in the 1990s, according to The Wall Street Journal. Meanwhile, rival Krispy Kreme's (KKD) first location in Russia is set to open Thursday. The company can be found in 21 countries.
Competition between the chains is heating up overseas. According to the Journal, Krispy Kreme has been in the U.K. for several years. Dunkin' hopes to win over U.K. consumers who patronize Starbucks (SBUX) and McDonald's (MCD) with "slightly milder" coffee, breakfast sandwiches and doughnuts, the paper says. The chain is holding talks with franchisees about adding 150 U.K. locations over the next five years.
The doughnut chains are also doing battle in Russia. Krispy Kreme franchisee Arkady Novikov has snagged a prime location in Moscow's Red Square. He told the Moscow Times that opening the doughnut shop is a dream come true. Novikov's store will offer doughnut flavors tailored for the local market. Five more Krispy Kreme shops are set to open in Russia's capital in the coming months, the paper said.
Dunkin', based in Massachusetts, is also in Russia, which it returned to in 2010 after exiting the country in 1999 "following three years of losses exacerbated by a rogue franchisee who sold liquor and meat pies alongside coffee and crullers," the Journal said. Dunkin', which has 10,400 restaurants, also plans to expand into other international markets, such as Vietnam, and plans to enter the California market after an absence of several years. The company also owns Baskin' Robbins ice cream shops.
Krispy Kreme, which has 789 locations, plans to have 900 international shops in operation by January 2017.
Perhaps Dunkin' and Krispy Kreme can help President Obama win the world's hearts and minds through their stomachs.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
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I'm from the East Coast originally. Here's the deal: Dunkin Donuts is about the coffee. It is NOT the direct competitor of Krispy Crème and such. Dunkin Donuts, in its region, is more of the alternative to the newfangled Starbucks with its snooty, boutique, "gourmet", European style girlie beverages than it is a "donut shop". The workaday blue collar contractors are backed up around the corner, lined up fro a good 'ol cup of inimitable American Joe (coffee) from Dunkins'.
Real coffee for real men, or Starbucks lattes for pussies?
Why is it so many investors don't really "get" Dunkins'? Their customers do.
I hate Dunkin's donuts anymore - bad aftertaste, cheap tasting ingredients. Their regular coffee is still very good though. KK is better if you eat them right away or they get mushy. But the best... the BEST in my area are "Yum Yum" donuts which are cheaper, bigger and fresher than the others and they don't beg for tips.
Local donut shops are the best - there was one in Angleton Texas called Karl's. Man what food! The owner, a WW2 vet, was just a great guy.
If I had to pick a favorite chain? Shipley's or Southern Maid
nothing says donuts like a dunkin' donut, the donut which is coffee dunked before eatin or eatin with coffee. donuts and coffee are like beer and pizza, an "american tradition", i prefer dunkin donuts because they are as classic as hot coffee with 2 lumps of sugar, no cream, no "flavored" coffee, no corn syrup...the same way dennis " no cure for cancer Leary", "rescue me" Leary likes it.
this the last time i checked this is dunkin donuts.
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