Even sellers of donuts and coffee aren't immune to the growing impact of Amazon (AMZN) .
Dunkin' Brands Group (DNKN) reported first quarter net sales of $190.7 million, falling short of Wall Street estimates for $192 million. Same-store sales at Dunkin' Donuts U.S. were unchanged compared to analyst forecasts for an 0.8 percent increase. Earnings beat Wall Street projections, coming in at 54 cents a share vs. the 48 cents a share expected.
On a conference call, Dunkin' Brands chairman and CEO Nigel Travis partly blamed the 'Amazon Effect' -- or people shopping online more instead of visiting retailers which in turn puts pressure on prices for food and other goods -- for the sluggish Dunkin' Donuts U.S. sales performance.
"Amazon is re-defining the way that people look at products, they are expanding into many different categories. What that then does is put pressure on Walmart (WMT) to lower prices. Then that puts pressure on people like Kroger (KR) , and then that puts pressure on local grocery stores," explained Travis in an interview with TheStreet.
Travis added, "The net result is that it creates an environment where grocery stores are very competitive at the moment with pricing -- there is a greater than three point gap in food at home prices and food away from home."
Even still, a push into more premium coffees and expected growth in users for its mobile app has Dunkin' upbeat on the rest of the year. Dunkin' lifted its full year profit outlook to $2.40 to $2.43 a share from $2.34 to $2.37 a share previously. Executives reiterated they see full year Dunkin' Donuts U.S. and Bastkin Robbins U.S. same-store sales each rising by a low-single digit percentage.
Here's TheStreet's full conversation with Travis. What follows is a condensed and edited version of the conversation.