Dunkin' weathers storm to attract crowds

In many cases, Dunkin' Donuts locations are staying open while most other stores and restaurants in the storm's path have closed.

By Kim Peterson Oct 30, 2012 1:02PM
Image: Waiting in line (Tom Grill/Corbis)Amid the devastation caused by Superstorm Sandy, Dunkin' Brands (DNKN) is working hard to keep the lights on.

Residents along the East Coast are flocking to Dunkin' Donuts locations, many of which are open while just about everything else seems closed. People are posting photos of Dunkin' Donuts lines on Twitter, including this one reportedly showing 100 people waiting. "The lines at every Dunkin within a 10 mile radius are insanely long," wrote someone else. There were also crowds at McDonald's (MCD) and Burger King (BKW) restaurants.

"Very few restaurants have closed," a spokeswoman for Dunkin' Brands told Bloomberg. "Any closures have been due largely to power outages or as a result of evacuations in affected areas. The majority of our restaurants are open and taking care of their customers."

Nearly all Dunkin' locations are operated by franchisees, and it's up to the individual franchisee to decide whether to open. Bloomberg reports that about 100 stores ended up closing.

Working to stay open in a storm is smart business and a community service. For Dunkin', however, it's also hugely important to the bottom line. The company's locations are heavily concentrated on the East Coast, and a storm of Sandy's magnitude will likely be a hit to sales this quarter. The company relies on its U.S. doughnut shops for some 75% of total sales, reports Investor's Business Daily.

Dunkin' has been slightly growing sales. For the third quarter ended Sept. 29, Dunkin' said that same-store sales at its U.S. doughnut shops grew 2.8%.

After falling below $26 at the start of the year, Dunkin' shares have risen to nearly $31.

More from Top Stocks

0Comments

DATA PROVIDERS

Copyright © 2013 Microsoft. All rights reserved.

Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.

Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.

Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

134
134 rated 1
281
281 rated 2
429
429 rated 3
603
603 rated 4
613
613 rated 5
610
610 rated 6
655
655 rated 7
471
471 rated 8
293
293 rated 9
124
124 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
BRCDBrocade Communications Systems Inc9
DNRDenbury Resources Inc9
GTGoodyear Tire & Rubber Ord Shs9
NRGNRG Energy Inc9
STEIStewart Enterprises Inc9
More
Fidelity Brokerage Services, Member NYSE, SIPC. (c) 2011 FMR LLC. All rights reserved

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.