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Dunkin' Welcomes Summer with New Beverage Offerings - Analyst Blog

Dunkin' Donuts - part of the Dunkin' Brands Group, Inc.DNKN - announced a palate of new menu items just in time for summer. This iconic coffee and donuts restaurant has introduced fruit smoothies and other frozen beverages to its menu.

The newest additions include two varieties of freshly prepared Fruit Smoothies - Strawberry Banana and Tropical Mango - with real fruit and creamy low-fat yogurt. This is likely to gain popularity among health conscious customers.

The company has also added other items to its popular beverage offerings such as the Frozen Dunkaccino - a frozen version of Dunkin' Donuts' popular hot drink Dunkaccino combining mocha and coffee flavors.

Dunkin' Donuts is also serving a new range named Coolatta Lite, which includes Frozen Coffee Coolatta, Minute Maid Orange Coolatta, Strawberry Coolatta and Vanilla Bean Coolatta, as well as the Summer LTO Coolatta flavors of Frozen Arnold Palmer Coolatta Lite and Mango Passionfruit Coolatta Lite. These items are a low-calorie variety of Dunkin' Donuts' popular Coolatta beverages, which will have 33-80% less calories.

A recent study by restaurant consultancy Technomic shows that cafes are the fastest-growing segment in the fast-food industry, recording 9% sales increase last year. In our view, Dunkin' Donuts' seasonal menu offerings will not only tap into the thriving demand for coffee but also bring in seasonal innovations - an important strategy to remain profitable in the highly competitive industry.

In fact, Dunkin' is continuously strengthening its product portfolio through innovations in coffee and refreshment, and by enhancing its core food offerings. The company added a number of frozen beverages in select U.S. markets earlier this year following the installations of new blenders at its U.S. outlets. The rollout will continue throughout the year.

Dunkin' currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector are Dave & Buster's Entertainment, Inc. PLAY , Zoe's Kitchen, Inc. ZOES and Carrols Restaurant Group, Inc. TAST . All these stocks sport a Zacks Rank #1 (Strong Buy).

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CARROLS RESTRNT (TAST): Free Stock Analysis Report

DUNKIN BRANDS (DNKN): Free Stock Analysis Report

DAVE&BUSTRS ENT (PLAY): Free Stock Analysis Report

ZOES KITCHEN (ZOES): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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