Just a month after Dunkin' Brands Group (NASDAQ:DNKN) forged a partnership with Uber Eats (NYSE:UBER) to make delivery available at 4,000 Dunkin' locations by the end of May, the restaurant company says it's expanding the number of participating outlets by 25%. Another 1,000 Dunkin' eateries will join the existing network this month, thanks to strong customer interest in the service.
In the press release, Dunkin' Director of New Business, Delivery & Catering Brandy Blackwell says the company is "very encouraged by early results of our collaboration with Uber Eats since launching last month, and are excited to quickly expand our delivery footprint." The full rollout of services to the new restaurants will be complete in approximately two weeks, by the end of June.
Uber Eats is offering two promotions to highlight the widening of delivery service from Dunkin'. One is free delivery (a $0 delivery fee) for Dunkin' orders from today, June 15, through June 24. The other is a BOGO (buy one, get one) deal on small Dunkin' iced coffee beverages, a summer promotion set to continue through June 21.
Dunkin' Brands was fairly successful at navigating the COVID-19 pandemic because of its flexible strategy. The company's shares have rebounded most of the way to pre-coronavirus levels, though its decision to suspend its dividend might have cooled investor enthusiasm a little.
Nevertheless, about a week ago, a KeyBanc analyst upgraded Dunkin' to an overweight rating with a price target of $78, an approximate 21% upside from current share value. The analyst also commented, "trusted brands like Dunkin' with advertising scale, digital ordering, and strong customer loyalty will be in the best position to recoup guest counts as the country reopens."