Dunkin' Donuts (NASDAQ:DNKN) is set to open 20 new stores in Southern California under a multi-unit deal with two franchise groups. The partnership will allow them to open 10 Dunkin' Donuts locations in Orange County and 10 Dunkin' Donuts locations in the San Fernando Valley over the next several years.
The expansion plans mark a new era for the company and will bring Dunkin' Donuts into a new market. Currently, there is only one Dunkin' Donuts location in California at Camp Pendleton that is located on a military base and isn't open to the public.
In early March, Dunkin' Brands announced that it had agreements to develop 150 free-standing Dunkin' Donuts restaurants all over California. The company has long-term plans to expand to more than 1,000 stores in the state.
The first SoCal location is scheduled to open by the end of the year. There are roughly 11,000 Dunkin' Donuts stores in the U.S.
Seperately, Dunkin' Brands on Thursday reported a lower profit for its first quarter, citing severe weather for disappointing U.S. sales. Net income fell to $23 million, down 4 percent from $23.8 million a year earlier. Revenue rose 6.2 percent to $171.9 million, while same-store sales at Dunkin' Donuts outlets in the U.S. rose a lower-than-expected 1.2 percent. Dunkin' Donuts domestic coffee shops account for about 75 percent of the company's total sales.
Dunkin' Donuts seeks out public libraries, hotel lobbies for 'non-traditional' expansion plans
Can Dunkin' Donuts really reposition itself as a beverage chain?
Tim Hortons' CEO: We have to serve fast and move south
Starbucks sets record with $1.3 billion in sales of prepaid cards
Starbucks greets security scare with new app, Neiman Marcus CEO: 'We deeply regret' data breach