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Dunkin’ Brands CEO Nigel Travis on the company’s strong sales that boosted its first-quarter earnings.
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Hey you -- -- and speaking of caffeine Dunkin brands swinging to profit in the first quarter Fox Business is I'm Cheryl Casone joins us now.
In a Fox Business exclusive all only here with the met at the Helm of the doughnut giant share.
-- -- thank you very much and let's bring and the CEO of Dunkin brands.
Nigel Travis night -- one has -- a -- -- you today it's not just hit a new all time high.
Very positive first quarter report the word here is wow for the quarter because of the US growth numbers.
What do you think it was in North America that really pushed higher numbers was at breakfast was at the K cups what was it.
I think use all of the above Cheryl I think we were very -- without performance in the morning.
We who plays without -- favorable ones breakfast -- is that really are becoming a -- parts of well.
Does so to speak but we also -- by Kris damages focused on the PM.
You know we're very focused on two segments that's breakfast and -- -- they buy Greece damages in the Elton and have done extremely well.
And then finally take ups we went into the quarter expecting to see if any big -- on take -- because that is a traditional season now I think.
We actually performed very much as we did -- a full pulls up.
So in many ways that was the icing on the cake so we -- -- within Duncan numbers -- Baskin was also very good.
To be truthful -- brands will help a little bit by some unseasonably -- well.
But we feel very good about a quarter in the momentum -- forward.
Well again that US growth at some point 2% and at the analysts -- -- community that have been looking for a little more commentary from me on the K -- that's we're finding straight.
But you do have competition we just got numbers out from Starbucks after the bell same day you got McDonald's you've got grain mountains near Stillman very competitive space.
With the coffee market even -- coffee prices are down about 70% your today.
You still have to deliver in what is always been the sweet spot your ad campaigns in America runs on Duncan.
What about the coffee market in particular and the competition.
Well looks that is I think the coffee market that doesn't affect just aren't they because we've done -- twenty -- -- companies those.
But it begs out franchisees yes it's nice is a coffee prices coming down.
That builds their confidence in means that they've got more money for that bottom line more money to invest in -- in.
More money to invest in that people because at the end of day this is a people business and now -- was very hard along the real highlight some of the -- Was the fight that we've improved our guest satisfaction yet again we're looking very auto that we -- about hello on the earnings call this morning.
In terms of take -- she mentioned that we're pleased with the progress we're making and we're pleased with the way out franchisees of delivering take up so -- -- It's a great way people all out very very avid customers.
To find and now like to drink and I'll a couple of Duncan at the end of the day if they take take up -- And in some -- -- think -- -- lot of cult figure in the back half an output as south of them are -- guess not just people who look for the company.
We in the news business like a lot of coffee Nigel as you probably know let's talk about US expansion because you really do have some aggressive growth plans.
Here in the United States you wanna double the amount of franchises over the next twenty years you're doing some current expansions in taxes Alabama -- -- looking at southern market.
Do you more franchise expansion is what is saying in those markets that you think is actually a growth opportunity for the company -- for the franchisees.
Well I think -- several things First -- We really have -- white space than anyone else -- -- about that constantly.
We -- steadily moving across the US is very -- -- continual growth.
AGO we're increase in the numbers of those that we open.
Guidance for this year is 260 did 219 net new Dunkin' Donuts those in the US that's up from us is set to honor -- forty straight.
And I think well -- franchisees.
And potential franchisees are saying is improve in economics.
They love the fight that every year because we have so much growth our our -- those -- disproportionately to the competition.
And that's very important because as you say we're in a competitive market you -- as interesting on.
You want your competitive market Nigel before -- I wanna ask -- about that because again but with regards to Starbucks China is a big market for them.
And you're looking to expand in Asia but why Asia why not Latin America that seems to be where the international growth opportunities are for many of your competitors.
-- you're gonna -- go head to head with Starbucks overseas why.
Well we go ahead to head with new environment is other competitors the government -- -- in another what is.
From that from my home country -- the gulf think they're growing so the competition is out left.
But we think -- each country we thank you on a country by country basis in many countries is more often and business -- the morning business.
We -- a very flexible brand.
One thing I'd remind you -- is that let's say he's Baskin Robbins is actually dent the real powerhouse brand is Michael MacMillan Duncan.
-- -- -- -- -- But you mentioned Latin America I was down there at the end of -- yeah yeah we've been very -- down that we're seeing great comes down that.
And -- we're very optimistic about Latin America as well as Asia.
Nigel travels thank you so much for talking exclusively to Fox Business today amazing earnings report we'll talk to you for the next quarter I don't think yet.
Thank you very much --
