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BUSINESSFriday 5 February 2016
Dunkin’s preps for a deal fight as customer visits slip
CANDICE CHOI and was last advertised
AP Food Industry Writer nationally two years ago.
NEW YORK (AP) — Dunkin’ For Dunkin’, finding the
Donuts, feeling sidelined right national price pro-
by a discounting fight in motion could be tricky be-
the fast-food industry, is cause the popularity of its
planning to jump into the menu items varies more by
game with its own deals. region. In the Northeast,
The coffee-and-doughnut the company sells more
chain said Thursday that drinks, while other mar-
customer visits slipped kets rely more heavily on
at U.S. stores open at doughnuts.
least 18 months in the last Some offers around the
three months of the year. country could provide
Dunkin’ CEO Nigel Travis clues on what Dunkin’
blamed the loss on aggres- has in store. The chain has
sive promotions at burger been offering sandwiches
chains, which he said were for $2.99 in the afternoons
sparked by McDonald’s in Boston. In Chicago, it has
highly anticipated rollout been advertising an “All
of all-day breakfast. Day Value Menu” that fea-
Wendy’s, for instance, tures 99-cent hash browns
launched a “4 for $4” deal In this Thursday, Feb. 14, 2013, file photo, a girl has a doughnut and a beverage at a Dunkin’ Do- and a muffin for $1.49. It
in October, which Burger nuts in New York. Dunkin’ Brands reports financial earnings on Thursday, Feb. 4, 2016. has also been offering two
King later one-upped with Associated Press egg-and-cheese sand-
a “5 for $4” offer. McDon- wiches for $3 in the city.
ald’s more recently intro- 2016, and meeting with need to get Congress to go tween fast-food compa- Travis noted that even in
duced its “McPick 2” deal franchisees next week to fi- along with their plans. nies and their franchisees. the afternoons, Dunkin’s
that lets people pick two nalize plans. He compared “We have to figure out how Companies make money breakfast sandwiches out-
items for $2. the situation to the political to bring franchisees along,” by getting a percentage sell its lunch sandwiches.
To win back customers, system, noting that presi- Travis said. of sales at restaurants, “Breakfast is something
Travis said Dunkin’ is plan- dential candidates such as His remarks were a refer- while franchisees have to people are willing to have
ning three national value Donald Trump and Bernie ence to the tensions that think about whether the all day.
promotions of its own for Sanders, if elected, would pricing can cause be- prices they charge will Not many people are will-
cover costs like food ingre- ing to have a hamburger
dients. As such, franchisees at 6 a.m.,” he said.
Orders to U.S. factories don’t always like discounts. For the last three months of
Subway Chief Advertising the year, Dunkin’s sales at
Officer Chris Carroll, for in- established U.S. stores fell
fell sharply in December stance, said he got support by 0.8 percent. The chain
for a $6 Footlong promo- forecast sales would rise up
tion this month by telling to 2 percent for 2016.
MARTIN CRUTSINGER mand for commercial air- dropped a sharp 4.3 per- franchisees it was a one- Dunkin’ Brands Group Inc.
AP Economics Writer craft, a volatile category. cent in December after time offer to “kick traffic reported a loss of $8.9 mil-
WASHINGTON (AP) — Or- But orders in a key catego- a 0.9 percent decline in into restaurants.” He said lion, or 10 cents per share,
ders to U.S. factories fell ry that tracks business in- November.Business invest- it wouldn’t be a recurring for the fourth quarter. Ex-
sharply in December, clos- vestment also fell sharply. ment has been held back promotion like the chain’s cluding one-time items,
ing out a year in which de- Orders for durable goods, this year by the steep drop famous $5 Footlong, which earnings were 52 cents per
mand for American manu- items intended to last at in oil prices, which has trig- was introduced in 2008 share.q
factured goods retreated least three years such as gered big cutbacks in at
Buffett’s firm nowfor the first time in six years. cars and home applianc- energy companies.
Factory orders dropped es, dropped 5 percent in For December, orders for
owns nearly 14the fourth decline in the The figure was revised ery plunged 78.2 percent.
2.9 percent in December, December. mining and oil field machin-
past five months, the Com- slightly from an advance re- Orders for commercial air-
percent of Phillips 66 ed Thursday.
merce Department report- port last week that pegged craft dropped 29.4 percent
the drop at 5.1 percent. in December. Demand
Orders were down 6.6 per- Demand for nondurable was also down sharply for OMAHA, Neb. (AP) — Berkshire Hathaway has purchased
cent for the full year, mark- defense aircraft, which fell nearly 1.7 million more shares of Phillips 66 to give it owner-
ing the first annual fall since goods, items including 68.7 percent. ship of almost 14 percent of the oil refiner.
2009, a year when the Total machinery orders The conglomerate led by Warren Buffett reported the lat-
country was struggling to chemicals, paper and pe- dropped 5.6 percent, while est stock purchases this week. Berkshire now owns 73.98
emerge from the Great Re- demand for computers million Phillips 66 shares worth roughly $5.9 billion.
cession. troleum products, dropped was down 16 percent. Berkshire revealed owning over 10 percent of Phillips 66
The 2015 decline under- Earlier this week, the Insti- stock in August when it disclosed a stake of 55 million
scores the problems Ameri- 0.8 percent in December. It tute for Supply Manage- shares. But before Berkshire began its recent string of
can manufacturers are ment reported that its key purchases in January it owned only 61.49 million Phillips
facing from spreading was the latest in a string of gauge of manufacturing 66 shares. Berkshire Hathaway owns about 90 subsidiar-
global weakness and the activity remained below ies in a variety of industries, including insurance, utilities,
rising strength of the dollar. declines that have been in- 50 in January, indicat- railroads, retail and manufacturing. It also holds major in-
The big December decline ing manufacturing was vestments in Coca-Cola Co., Wells Fargo & Co., IBM and
was led by a plunge in de- fluenced in part by the fall- contracting.q American Express Co.q
ing price for energy prod-
ucts.
The key category of non-
defense capital goods
excluding aircraft, which
serves as a proxy for busi-
nessinvestment plans,