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Dunkin' Brands Offers New Rewards for Customers

Zacks Equity Research

Dunkin' Brands Group, Inc. DNKN is offering yet another interesting promotional program for its patrons. The offer is valid for people who enroll into DD Perks Loyalty Program this month. The offer starts from Apr 14 and continue through Apr 21.

Customers who join DD Perks Loyalty Program during this period will get a special “STAR” code which will earn them 125 points automatically for a free beverage. Moreover, customers who a pay a second or third visit to the stores by May 31, 2016 and purchase items using the Dunkin' Donuts Card will receive an additional 125 points.

Not only will DD Perks members get a free beverage upon joining but also each time they accumulate 200 points. This means that they can get three free beverages from Dunkin under this offer. Under the rewards program, every dollar spent on qualifying purchases can earn the customer five points, provided they use an enrolled Dunkin’ Donuts Card for payment.

DD Perks Loyalty Program continues to be a major sales driver for Dunkin' Brands, riding on the back of the company’s brand recognition. The program was introduced in Jan 2014 in the U.S. and currently has more than four million members. The loyalty program awards points for each dollar spent and offers special customized rewards to members, thereby, attracting more customers.

Dunkin' Brands ranks among the well-established global quick service restaurant brands. As a result, it enjoys enormous customer trust and brand loyalty making it easier for Dunkin' Donuts to launch new product lines. The company’s popularity also allows it to have a cost advantage and thus it generates higher return on investment compared to its peers. Moreover, this helps the brand to expand internationally in emerging markets of Asia and the Middle East as well as in certain mature markets of Europe, where Dunkin’ can grow revenues, without any major headwinds.

Dunkin' Donuts currently has a Zacks Rank #3 (Hold).

Stocks to Consider

Better-ranked stocks in the restaurant industry include Carrols Restaurant Group, Inc. TAST, Diversified Restaurant Holdings, Inc. SAUC and Darden Restaurants, Inc. DRI. All these stocks sport a Zacks Rank #1 (Strong Buy).

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