Dunkin' Brands Group, Inc. (DNKN) has announced that it will roll out a doughnut-croissant hybrid called the Croissant Donut, next week. The Massachusetts-based quick service restaurant operator is looking to capitalize on the massive demand for Cronuts – the doughnut-croissant hybrid – in the U.S. The Cronuts craze first hit the U.S. in May 2013, when Dominique Ansel bakery in New York had crowds flocking to it to grab a bite of the Cronut.
The product will be available at selected shops for $2.49, beginning Nov 3. The glazed, flaky ring-shaped donut will be served nationwide for a limited time. Dunkin’ Donuts’ Croissant Doughnut will have 24 layers of dough and is covered with the same glaze used in its classic glazed doughnut.
Reportedly, Dunkin’ Donuts conducted a test run in New Jersey and also sold the croissant doughnuts at its Korea-based stores last summer. The latest menu item is part of the chain’s menu innovation initiatives. The company is continuously focusing on menu innovation with new burritos, smoothies and other items to survive in the hugely competitive quick service restaurant sector.
The Croissant Donut is one of several new offerings Dunkin' has in the pipeline after reporting disappointing quarterly sales last week and warning that it might struggle to reach its long-term growth targets this year. Also, a major share of Dunkin’ Brands’ revenues comes from the breakfast segment, where companies like McDonald's Corp. (MCD), Starbucks Corp. (SBUX) and Yum! Brands, Inc.’s (YUM) Taco Bell are eating into its market share.
Dunkin’ Brands currently has a Zacks Rank #3 (Hold).
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