Dunkin Brands had both its Q4 earnings and 2018 Investor day events this week and what emerged is a company in deep repositioning mode. Dunkin opened eyes to reveal pretty meek 2018 DD same store sales estimates (plus 1 percent for the year, Q1 was said to be “choppy”) and decreased the DD 2018 open target to 275 net new opens. The DD store development target for the Northeastern core markets was narrowed to remodels, relocations and consolidations. Moving forward through 2020, 90 percent of the opens are targeted outside of the core Northeastern markets. This is welcome news and a change of the Brand’s thinking toward “quality openings.” Dunkin noted 19 roadshow presentations were made on the “Blueprint of the Future” to franchisees and that franchisees, surveyed in December, identified labor conditions, competition and regulatory issues as their top concerns. To investors and franchisees, the goal of 3 percent DD US same store sales growth by 2020 was noted and they discussed at great length the reduced menu test, now up to 5000 shops – to date, test store AWUS is down 1% initially, with 100 basis points of cost savings. No system franchisee economics were revealed other than 18-20% (no debt service) cash on cash return in the West and emerging markets, a 40 % beverage mix, and AUVs of $850K to $950K. There was also much discussion of the “Next Gen” Quincy store test, with 50 more coming this year. Buildout costs are now above the current $550K average but with hope to get it down eventually to the prior range. A cost of remodeling an existing shop was not noted. There was some discussion of the $100 million to be invested in DD in the 2018-2020 timeframe, but while no hard subsets were listed, it seems to be reserved for digital, and “NextGen.”