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Dunkin’ Brands Caps Off Profitable Q2 With Major Mobile Payment News

Dunkin’ Donuts U.S. President and CEO David Hoffmann said the company’s so-called “Blueprint for Growth” has been its guiding light to a path that it hopes will ultimately lead to make it the premier player in the beverage space.

“Our highest quarterly beverages sales on record underscored that we’re on track towards our goal to be the nation’s leading beverage-led, on-the-go brand,” Hoffmann told stockholders on the quarterly financial call. “Along with our franchisees, we leveraged national marketing to launch the most comprehensive value program in the brand’s history driving breakfast sandwich sales, which more than offset the impact of menu simplification. We have strong alignment with our franchisees on the brand’s strategy and remain on track to open 50 NextGen new and remodeled restaurants this year with Dunkin’ Donuts U.S. again expected to be one of the fastest-growing QSR brands by unit count in the country for 2018.”

Dunkin’ Brands CFO Kate Jaspon told investors that the brand will continue with its plan to invest $100 million in equipment to support a beverage-led, on-the-go strategy, as well as technology infrastructure.

Toward those ends, this morning the company announced that it has entered a multi-year deal with large merchant mobile wallet provider, CardFree, to secure a perpetual license to the software used to build and operate the mobile ordering and payment platform for Dunkin’ Donuts U.S.

The deal gives Dunkin’ Brands greater control to operate the technology that makes mobile payments and ordering possible through  its mobile app. The broad rights received by Dunkin’ Brands will also support the development of future digital initiatives, including catering, delivery and curbside pick-up.

Dunkin’ Brands has been working with CardFree’s leadership for several years to first deploy the Dunkin’ Mobile App six years ago with a design intended to address the needs of the “on-the-go” customer. The company said that it has had more than18 million app downloads, while accruing nearly 9 million members in its DD Perks Rewards Program, making the Dunkin’ Mobile App one of fast food’s most successful merchant applications.

“Enabling guests to order and pay remotely is the leading global consumer trend occurring in the retail industry today,” Dunkin’ Brands CIO Jack Clare, said in a news release about the new deal. “Extending our successful relationship with CardFree and receiving a perpetual license to the code that supports our digital initiatives, including our gift card and DD Perks Loyalty programs, mobile ordering, delivery, and catering, will ensure that we have the best technology backbone in place and will allow us to accelerate our digital efforts.”

Finally, the brand announced today that it is also declaring a quarterly cash dividend of $0.3475 per share of common stock. The payout is set for Sept. 5 to shareholders of record at the close of business on Aug. 27.

 

 

 

 

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