Dunkin' ($DNKN) has recently confirmed it will be closing 800 locations by the end of the year. The East Coast coffee and donuts staple is shedding some of its less popular locations, still counting thousands of stores around the world.
💎 Data Digs
The company's job listings have been dropping in step with the closures, down by 76% from February.
REITs like Simon Property Group, Brixmor Property Group, Kimco Realty, and KLNB Retail will be potentially affected by Dunkin's store closures. The size of the bubble on the map below represents how many Dunkin' locations are in each area.
🔬 Failure Blueprint
- Dunkin's first round of store closures was reported back in February, and only affected 450 small locations inside of Speedway gas stations. These gas station Dunkin’ locations were underperforming, even before the pandemic.
In a statement, Dunkin' said that the 800 soon-to-be-closed locations represent about 8% of all Dunkin' locations in the US and account for approximately 2% of the company's 2019 US sales.
- Same-store sales fell by 18.7% in the most recent quarter, aside from locations that were temporarily closed.
Dunkin' isn't the only chain dropping dead weight during the pandemic. Starbucks and McDonald's also shuttered a number of locations this year.