QUINCY, Mass., Oct. 1 (UPI) -- Massachussetts-based breakfast spot Dunkin' Donuts announced Thursday that it plans to close 100 stores by 2016.
The company did not provide a list of which stores would be closed, but did say that they represent only a small fraction of its overall revenue. It also reiterated plans to open new stores in California.
The company said that the closings may be indicative of its expansion being too aggressive. It lowered its growth outlook for the third quarter to just 1.1 percent in light of lessened sales and issued less-than-normal earnings guidance. Analsyts had forecast a growth of 2.6 percent.
Shares also plunged more than 10 percent to as low as $42.75 a share, their lowest number since January 2015.
Dunkin' Donuts U.S. and Canada president Paul Twohig said the company was disappointed with U.S. sales and that it is working on improving its menu as a way to boost sales. New products including a Pumpkin Macchiato and Maple Bacon Square Donut.
Yet another factor the company claims is influencing its plans is the sharp hike in commodity prices, such as the rise in egg prices due to the U.S. avian flue outbreak.
Finally, higher minimum wages in some states -- such as New York's planned $15 minimum for fast food workers -- are also concerning the company. Dunkin' Donuts CEO Nigel Travis called the idea for such a wage "outrageous."
