NEW YORK (AP) — Shares of Dunkin' Brands fell more than 12 percent Thursday after the company said it expects sales to slow from the previous quarter at its doughnut shops.
Sales at Dunkin' Donut stores open at least a year are expected to grow 1.1 percent in the third quarter, well below the 2.9 percent growth reported in its last quarter.
The company projects customer traffic will slip 0.7 percent in the third quarter. Dunkin', which also owns Baskin-Robbins, kept its earnings and revenue outlook for the year unchanged. It expects earnings between $1.87 per share and $1.91 per share for the year and revenue to grow 6 percent to 8 percent from the previous year. But that's still below the $1.92 expected by Wall Street, according to a poll by FactSet. Analysts also expect revenue to rise about 8 percent to $808.1 million.
The company also said Thursday that it plans to close 100 stores in Speedway gas stations this year and next.
Shares of Dunkin Brands Group Inc., based in Canton, Massachusetts, fell $6 to close at $43 in Thursday. That's the lowest the shares have traded since early January.