Dunkin’ might drop ‘donuts’ from its name but not menu

Dunkin’ Donuts is NEW YORK — still deciding whether to drop the second part of its name, but the doughy treats won’t be disappearing from the menu.

CEO Nigel Travis said Thursday that the chain wants to remain the “No. 1 retailer of doughnuts.”

He said a second store with just the Dunkin’ name will open in Quincy, Mass., where the company was founded, in the next year. A store in Pasadena, Calif., is already testing the shortened name, though Travis said no decision has been made on whether to use the simpler name nationwide.

“My two young kids think it should stay Dunkin’ Donuts forever,” he said.

At about 1,000 Dunkin’ Donuts locations, the company has been making cuts to its overall menu, including some doughnut varieties, to make the stores easier to run for franchisees, Travis said. He said too many different types of coffee syrups, sandwich breads and other items make it harder on employees.

Higher sales at its Dunkin’ Donuts stores buoyed revenue in the third quarter at Dunkin’ Brands Group Inc., which also owns Baskin Robbins, the company said Thursday. Sales of coffee and espresso at Dunkin’ Donuts stores climbed, while frozen beverage sales fell.

Travis said that morning sales at Dunkin’ Donuts increased at a faster rate than full-day sales, due to its two-for-$2 egg and cheese wraps. He said he’s “optimistic” about its latest promotion, two-for-$5 egg and cheese croissants.

Value menus have been a success with customers, with McDonald’s this week crediting $1 soft drinks, coupons on its app and a two-for-$5 promotion called McPick 2 for higher sales.

For the three months ended Sept. 30, Dunkin’ reported that revenue rose to $224.2 million from $207.1 million. That beat the $213.8 million that analysts polled by Zacks Investment Research were predicting.

Sales at Dunkin’ Donuts locations in the U.S. open at least a year rose 0.6 percent. At the company’s ice cream chain, Baskin Robbins, the figure dipped 0.4 percent.

The Massachusetts-based company earned $52.2 million, or 57 cents per share, in the quarter. A year earlier it earned $52.7 million, or 57 cents per share. Earnings adjusted for pretax expenses came to 61 cents per share. That’s 2 cents shy of what Wall Street was calling for.

Dunkin’ still anticipates fullyear earnings in a range of $2.40 to $2.43 per share.

FILE Dunkin’ Donuts is making cuts to its menu, including some doughnut varieties, to make the stores easier to run. But even if the company drops the second part of its name, it aims to remain the “No. 1 retailer of doughnuts.”