Dunkin Brands reported on their Q2 earnings yesterday, beating estimates by $.02 EPS but missing on revenue. The stock moved up slightly $XX. DD US same store sales were up .8%, ticket higher/traffic lower. It was also noted that US new store open projections were decreased about 10% for 2017, but also that 2016 new store opens in the West achieved a 20% cash on cash return (exclusive of debt service) and that California was still strong with a higher percentage of drive-thru stores opening than in the past. Further, Nigel reported that morning business was good but afternoon less than hoped. In addition, there were a number of other significant issues discussed as well. Among these, they talked about the campaign to re-up franchisee contracts, announcing that 75% of those eligible had done so and highlighting the fees associated with the renewals that corporate would gain. They also reported that a new “grab and go” store physical prototype would be soon ready to go and will involve franchisee CAPEX going forward. No target costs were noted, nor was there any discussion as to if or when existing shops would be required to convert. Along that line, Nigel noted that “franchisees love to invest in their stores”, and then speculated on the brand co-investing for CAPEX. With the amount of testing and change underway, along with contract modifications, it is critical that franchisees share notes and communicate with one another – the new aforementioned DDIFO IdeaXchange is a perfect vehicle to do so!