Future Dunkin’ Brands reported slower sales growth slow in Q4 of 2014 as it faced intensifying competition for on-the-go customers in the mornings. Sales for Dunkin’ Donuts USA edged up 1.4 percent in the period, down from the growth of 3.5 percent a year ago. Analysts say the slowdown comes as more competitors have pushed into the breakfast category, a relative bright spot in the fast-food industry. For example, Yum Brands’ Taco Bell segment recently reported that its quarterly sales rose 7 percent in its U.S. locations, boosted by its national breakfast launch. Dunkin’ CEO Nigel Travis says, “If you think about it, everyone’s getting into the breakfast space.”
Rival Burger King provides breakfast and coffee to millions of customers through thousands of restaurants located near Dunkin’ Donuts restaurants. Now, in addition, Burger King owns Tim Hortons, and looks to put those restaurants near Dunkin’ Donuts restaurants, especially in the northeastern United States. CEO Nigel Travis at Dunkin’ Brands needs a three-year strategic plan.
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