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Sozzi: The Top 3 Reasons for Baskin Robbins' Turnaround

NEW YORK (TheStreet) -- The U.S. is coming off a winter that was harsh on our skin and digital wallets. Yet, 69-year old ice cream brand Baskin Robbins and its 31 nom nom nom flavors had nicely positive sales growth in the fourth quarter of 2013. Actually, in spite of the Great Fro-Yo Boom of 2013, the afterthought inside Dunkin Donuts (DNKN - Get Report) stores has had three straight quarters of positive sales growth. Not a chilly performance at all!

While Starbucks (SBUX - Get Report) grabs tons of headlines for its new food menu, here are the three reasons for the comeback story you need to know more about.

Marketing: Dunkin Donuts continues to be a master of all things story-telling. Not only has the company expanded the Baskin Robbins brand name to new iced coffee drinks, but will have a red and blue vanilla flavored ice cream for the May 3 release of The Amazing Spiderman 2. What kid doesn't love Spidey and ice cream?

Social experience: Both Dunkin Donuts and Baskin Robbins have massive followings on Twitter (TWTR - Get Report) and Facebook (FB - Get Report), mostly because the feeds are constantly updated with consumer shared photos and new drink showcasing. But, also, Dunkin Donuts has been leading the fast food industry with social media contests. For Spiderman, from April 1 to April 24, those that take the best Spiderman selfies and tag them on Facebook and Instagram with the #BRHero tag, are entered into prize drawings for free ice cream gift cards. Hey, who doesn't want to potentially snag some free ice cream and have a Spiderman selfie go viral?

New products: Fact - through a new license agreement, you can now find Baskin Robbins in 3-packs and a 14oz cup in supermarket freezers. Oh yeah, you can now order custom ice cream cakes online. And, in May, a new Greek yogurt fro-yo will launch at the stores.

Say hello to Baskin Robbins 2.0.

-- By Brian Sozzi CEO of Belus Capital Advisors, analyst to TheStreet.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.


WATCH: More videos from Brian Sozzi on TheStreet TV

At the time of publication, Sozzi held no position in the stocks mentioned.

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FB $80.78 0.00%
SBUX $47.62 0.00%
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AAPL $124.75 0.00%

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