Dunkin' Donuts Really Wants You to Try These 6 New Foods in July

Dunkin' starts testing several new items on the eve of its second quarter earnings release.
By Brian Sozzi ,

Dunkin' Donuts' product innovation team seems to be running on a little extra java lately in a bid to fatten sales and profit. 

The Dunkin Brands (DNKN) - Get Report  fast food chain has been on an innovation tear this year, launching tests of eye-catching items such as Belgian waffle egg sandwiches and chicken and waffle sandwiches. Its most publicized product launch so far has been cold brew coffee, which is slow steeped over several hours and meant to take aim at Starbucks (SBUX) - Get Report success with a similar offering. Cold brew became available on June 27 at participating Dunkin' Donuts restaurants in the Metro New York and Los Angeles markets, and will be nationwide later this summer.

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Despite the barrage of new products, Dunkin' may have still fallen victim to a slowdown in the fast food industry in the second-quarter thanks to a sluggish U.S. economy. Investors seem to be betting that way at least -- shares of Dunkin' Brands have fallen about 2.9% over the last three months compared to a 3.2% gain for the S&P 500.

Dunkin' "franchisees cited several reasons for weak traffic growth, including continued competitive pressures from convenience stores, an acute labor shortage in certain markets and a broad-based pullback in consumer spending," wrote Credit Suisse analyst Jason West in Jun. 30 note, adding, "Menu pricing also remains aggressive and seems to be weighing on traffic."

West lowered his second-quarter same-store sales estimate for Dunkin' U.S. from 0.5% growth to unchanged vs. the prior year. For the second half of the year, West sees Dunkin' U.S. growing same-store sales by 1.5%, down from a 2% increase previously. The analyst maintained his outperform rating on the stock, however, citing a healthy appetite by Dunkin' franchisees to open new restaurants and the benefit of digital ordering.

Nevertheless, TheStreet has learned of six new product tests Dunkin' has launched this month across the country. If some of them gain a following among consumers in their respective markets, and are rolled out nationally alongside the well-received cold brew, the second half of the year for Dunkin' may look better than analysts dreary prognostications on how the second quarter turned out.

Chewy fruit pieces in iced tea? Sure, why not.

1. Fruited Iced Teas

Markets: Available exclusively at Dunkin' Donuts locations across the six New England states through summer.

The teas feature black or green iced tea and is sweetened with fruit juice and real fruit, says Dunkin'. They come in two flavors -- Mango Pineapple and Blackberry.

For its part, Starbucks' Teavana brand recently debuted an iced berry sangria tea. Seeing as it has no alcohol in it -- which is typical to a sangria -- it's a disappointment, at least to us.  

Where has this been all of our lives?

2. S'Mores Square

Markets: Available at participating upstate New York Dunkin' Donuts restaurants throughout the Syracuse, Watertown, Utica, Elmira, and Binghamton areas for a limited time.

A donut square with marshmallow filling and topped with chocolate icing and a mix of mini marshmallows, chunks of Hershey's chocolate and graham crackers. Moms and dads in these camping friendly upstate New York markets should rejoice -- picking up these s'mores donuts is a hell of a lot easier than cleaning up after kids trying to melt marshmallows and chocolate over a campfire.

Not sure about the gummy worms.

3. Dirt Cup Donut

Markets: Available at participating Dunkin' Donuts restaurants throughout the Cincinnati area for a limited time.

A donut square filled with brownie batter and topped with chocolate icing, Oreo cookie crumble and two gummy worms. Dunkin' lost us with the two gummy worms, but the rest of the doughnut makes sense. 

Looks like a super premium Pillsbury toaster strudel. 

4. Guava Cream Cheese Square

Markets: Available participating Dunkin' Donuts restaurants throughout the Miami area for a limited time.

This donut square is filled with guava and cream cheese, and is topped with white icing. Solid, but not eye-popping, combination here. 

Potentially a little messy, but who cares.

5.Chocolate Cake Whoopie Pie Donut

Markets: Available at participating Dunkin' Donuts restaurants throughout the Wilkes-Barre and Scranton, Pa., areas for a limited time.

It's a chocolate cake donut cut in half, layered with vanilla buttercream, and then topped with vanilla buttercream and drizzled with chocolate. About damn time the ridiculously boring Devil Dog gets some innovation. 

In addition to BlenDDed shakes, Dunkin' also sells fruit smoothies made with low-fat yogurt.

6.BlenDDed Shakes

Markets: Available at participating Dunkin' Donuts restaurants throughout the Bangor and Portland, Maine, areas for a limited time.

Made with a blend of milk, ice, syrup, and an ice cream base. Available in four flavors: chocolate, vanilla strawberry, and coffee. Our first impression after trying a version of the shakes last year during a visit to Dunkin' headquarters in Boston -- "these are way better than McDonald's (MCD) - Get Report shakes."

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