Shares of Dunkin' Brands (DNKN) - Get Report were brewing up a storm Wednesday as the coffee and doughnut giant reported a significant narrowing in same-store sales declines, rebounding from a coronavirus low.
Dunkin's stock at last check rose 3.3% to $68.27 after the Canton, Mass., chain filed an update on its second-quarter financials with the U.S. Securities and Exchange Commission.
Dunkin' shares have surged by nearly two-thirds since March 20, when they slipped below $40.
Dunkin' reported that same-store sales "have been improving week-over-week during the second quarter," with the trend becoming particularly pronounced by the third week of May.
Dunkin' noted in the SEC filing that comparable-store sales fell 15% in the week ended May 23, "representing a significant sequential improvement" over the same week in April, when sales fell 25%.
Overall, during the first eight weeks of the second quarter, sales fell 23% at stores still open amid the coronavirus lockdown, Dunkin' reported.
One bright spot has been double-digit sales growth over the year-earlier period during the 11 a.m. to 2 p.m. time slot, driven by "higher ticket orders," Dunkin' noted in the filing.
Dunkin', which already put particular emphasis on its drive-through business before the pandemic, said sales have been strong at the drive-through windows through the first eight weeks of the second quarter.
Dunkin' also reported it is seeing increased sales through its app, on both the curbside pickup and delivery sides as well.
The chain noted that "digital adoption has increased weekly" with help from "local and national offers" aimed at encouraging customers to "join, reactivate and use" the DD Perks rewards cards for transactions.