Dunkin’ And Starbucks Are Missing Out On Breakfast. Expect Those Customers To Venture Back.

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Breakfast is the most important meal of the day—for people eating it, and in many cases, for Dunkin’ Brands Group (DNKN) and Starbucks (SBUX), argues Evercore ISI.

Analyst David Palmer takes a look at recent trends at both eateries, and estimates that Dunkin’s same-store sales declines have likely moderated to 15% to 20%, while Starbucks’ appear to be stuck in the 35% to 40% range. He’s already factored this revenue pain into his estimates for the quarter, but he notes that “stubborn declines are a reminder of how difficult [breakfast] has been as much of America is working from home—or at home collecting unemployment.”

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