Dunkin' Brands Group Inc. announced Thursday that one of it's franchisees will shut down 100 Dunkin' Donut stores in 2015 and 2016.
While the company did not disclose which stores would be closing, it did reveal that the affected stores are all owned by the Speedway gas station and convenience store chain, according to True Jersey.
Many fear that these closings are the result of the company opening stores too aggressively, mirroring a mistake Starbucks made in the past.
The company, however, emphasized that the stores only represent a small fraction of its revenue, reiterating that it still plans to open additional stores in California, according to CNN.
An investor day presentation noted that Dunkin' maintained its full-year forecast of adjusted earnings of $1.87-$1.91 per share, reported Reuters. However, analysts had predicted higher earnings of $1.92 per share.
Dunkin' Donuts U.S. and Canada president Paul Twohig announced at the meeting that he was disappointed with earnings in the U.S., but he stressed that Dunkin' was working to improve its menu offerings in order to boost sales. The company touted new products like a Pumpkin Macchiato and Maple Bacon Square Donut.
The announcement of the closings came as a shock to investors, causing company shares to plummet by almost 13 percent.
