Dunkin' Donuts counting fewer beans

Weak consumer spending and increased competition for their breakfast business yesterday prompted the parent company of Dunkin' Donuts to warn that it might miss sales forecasts.

It will be a "challenge" for Canton-based Dunkin' Brands to achieve the low end of its targeted 2 percent to 3 percent increase in comparable-store sales at U.S. Dunkin' locations, chairman and CEO Nigel Travis said in an earnings call with analysts.

"Dunkin' Donuts U.S. third-quarter (comparable store sales) of 2 percent did improve slightly over the second quarter even if we continue to feel the impact from an ongoing sluggish economy and a highly competitive QSR (quick-service restaurant) breakfast and coffee environment," Travis said. "We've faced some headwinds this year on Dunkin' Donuts U.S. stores."

Comparable store sales are considered an important performance measure. They reflect sales at stores open 54 weeks or more and exclude recently opened or closed stores.

Travis said he is "concerned" about consumers.

"I'd like to think that they were going to be encouraged by gas prices going down," he said. "That doesn't seem to have happened to anyone yet."

Dunkin' is facing competitive pressures — including price competition — from casual dining chains and fellow quick-service chains such as McDonald's.

Breakfast and coffee are strong growth categories in the restaurant business, and more and more companies are looking to get their piece of the pie, said Sharon Zackfia of William Blair & Co. "Particularly with soft drink consumption kind of declining and other (parts of the day) providing challenges for many restaurant operators, breakfast is pretty enticing," she said. "It's growing, and it's pretty habitual. "

Dunkin' maintained its full-year earnings-per-share guidance of $1.73 to $1.77.

Its earnings growth is primarily driven by development, and that remains very healthy for U.S. Dunkin' locations, and franchisee profitability is at all-time highs, Zackfia said.

Dunkin' shares, which fell as much as 6.7 percent yesterday, closed at $44, down 5.96 percent.

"The shares have under-performed their (QSR) and broader restaurant industry peers year-to-date," Barclays analyst Jeffrey Bernstein said in a research report. But, he noted, "Despite the near-term headwinds, we continue to believe Dunkin' is a strong long-term growth story."

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Lumiere shines light on high-end Medford site

A large site across from the Mystic River Reservation in Medford is being turned into the area's latest luxury apartment development with views across the river to the Boston skyline.

The 164-unit Lumiere is about a mile from the Wellington Orange Line T Station, and sits on the site of a former car dealership. The first 48-apartment phase has just opened, with 18 of the units leased. The final two phases will be finished in December and February.

The Lumiere is in the same apartment submarket as Station Landing in Medford and Assembly Row in Somerville, but without the urban village feel.

"People who go there get the hustle and bustle, but those who rent here want a little more tranquility," said Lumiere property man­ager Robin Boersner, citing nearby walking and cycling trails and kayaking on the river. "We're across from a natural retreat."

Waltham- and Dallas-based Criterion Development Partners also recently built the Rivers Edge apartments near Wellington, but the Lumiere is targeting a higher-end market.

"Criterion wanted to create a real upscale feel at the Lumiere, with larger apartments and higher quality finishes than the competition," said Michelle Tomasetti, director of marketing for Winn­Residential, which is managing the development.

All apartments have 9- to 10-foot ceilings and tall windows, kitchens with Silestone countertops and islands, and two-tone zebrawood and white cabinetry. The master bedroom suites have spacious walk-in closets and soaking tubs in the en-suite tiled bathrooms. Fifth-floor apartments have gas fireplaces and some units have hardwood floors throughout. Most have sliding-glass doors to private balconies.

Studios at the Lumiere, with 623 square feet, start at $1,829, one bedrooms, from 690 to 840 square feet, range from $2,071 to $2,688 and two bedrooms, with 1,038-1,301 square feet, go for $2,655 to $3,033. All apartments have in-unit washers and dryers.

And each comes with one garage parking space, with additional spaces available at $100 apiece. The complex is currently offering a leasing­ concession of one free month's rent.

While the apartments have earthy tones, the common-­area finishes — starting with a striking white marble tile wall in the entry foyer — go for a bolder, contemporary look.

"There's a lot of texture with bright colors to give the amenity spaces a boutique hotel feel," Boersner said.

The second-floor common spaces take advantage of Mystic River and Boston skyline views. The Lookout Lounge has wraparound windows and glass mosaic tile walls, and features a full high-end kitchen for tenant use as well as a clubroom with a two-sided gas fireplace and a billiards table.

This room opens onto an outdoor courtyard, one of two in the complex, which features a heated pool and a sundeck. There's also a fitness facility, a Wi-Fi conference room and a dedicated room for gaming­ consoles. The second courtyard will feature a "green" community garden.

The pet-friendly Lumiere is going for a LEED designation, and has other green features such as LED lighting as well as electric car- charging stations.

"What we're offering is elegance with an edgy touch," Tomasetti said.

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The Ticker

N.H. co. settles with Apple

A New Hampshire company that was manufacturing synthetic sapphire glass has reached a settlement with Apple, but at the expense of layoffs at its facilities in Salem and New Hampshire.

GT Advanced Technologies said in a statement yesterday it will "wind down" its sapphire production in Salem and Mesa, Ariz., under a settlement with Apple that is part of the company's ongoing Chapter 11 bankruptcy proceedings.

GT has laid off 650 workers in its Arizona plant and six employees in Salem. The Salem facility will remain open, but a number of positions will be transferred to its Merrimack, N.H., headquarters.

MBTA launches Green Line tracking

The MBTA began providing real-time information on the Green Line yesterday for the first time in the line's 
117-year history. Real-time data on the location of Green Line trains is now fed to the dozens of MBTA real-time apps. This will mark the completion of the first phase of a multi-phase project to provide real-time information and predictions to the Green Line's 227,000 daily riders.

Raytheon reports $515M in net income

Raytheon Co. yesterday reported third-quarter net income of $515 million.

On a per-share basis, the Waltham company said it had a profit of $1.65, beating Wall Street expectations.

The average estimate of analysts surveyed by Zacks Investment Research was for earnings of $1.61 per share.

The defense contractor posted revenue of 
$5.47 billion in the period, which missed Street forecasts. Analysts expected $5.62 billion, according to Zacks.

Lynch donates $50G to foundation

The New England Chapter of the Network for Teaching Entrepreneurship announced it has received a $50,000 donation from the Barbara Lynch Foundation. The Hub restaurateur's donation will be used to specifically expand NFTE's programming within Boston schools, including Charlestown High School, the Josiah Quincy School, Boston International High School and West Roxbury Academy.

Today

• Commerce Department releases new home sales for September.
• State Street Global Advisors, the asset management business of State Street Corp., has announced the appointment of Lori Heinel as chief portfolio strategist. In this newly created position, Heinel will oversee a global team of 20 investment professionals dedicated to communicating information about investment strategies and solutions to prospects, clients and consultants. A 30-year industry veteran, Heinel most recently served as chief investment strategist for OppenheimerFunds Inc., where she oversaw product management, product development and investment thought leadership.

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Amazon’s new Kindles a perfect read

The new Kindle Voyage is the perfect binge-reader.

It proves that the iPad isn't for bookworms anymore, because even the most old-school lover of dead trees should take a look at the Voyage, which takes all the best aspects of Amazon's previous e-readers and rolls them into the best digital book experience on the market.

While the iPad is still king of the tablet market with about 30 percent marketshare, Amazon has steadfastly catered to people who love to read. It's a strategy that should pay off this holiday shopping season with impressive sales of this impressive product.

The ultra-thin, 7 mm device starts at $200 and costs $290 for the 3G model, a price reflective of a super-luxe and refined style.

Like the excellent Kindle Paperwhite, the Voyage has a unique lighting system that directs light from the screen itself down onto the ink — just like a light in the room would reflect off a piece of paper — very cool technology that doesn't strain your eyes.

At 300 pixels per inch, the same as the printed page, reading on the Voyage is literally like reading a book.

The Kindle Voyage is an electronic reading device that melts away, with alerts and annoyances muted while you read, excellent battery life and very little bezel. The buttons for the next and last page are capacitive, so you can hold the Kindle anywhere without fear of triggering them.

A magnetic latch cover with a built-in stand makes it easy to take a book to bed.

A particularly awesome feature is Kindle X-Ray, which helps with instant word definitions and information about obscure characters and themes.

It's worth noting that Amazon also has a winner with the Kindle Fire HD Kids Edition, the first tablet for children that's worth a try. It costs $149 for the 6-inch version and $189 for the 7-inch base model. The price includes a one-year subscription to 5,000 games, videos, and books for kids. A rugged protective case and two-year, no-questions-asked warranty rounds out that excellent offering.

Both the Voyage and Fire for kids are evidence that Amazon should stick to the things that made it great — namely, books.

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SEC, Fed relax mortgage down payment rules

New rules that will make it easier for banks to sell mortgages and will let home buyers use smaller down payments are aimed at jump-starting a sluggish housing market, but may not make a significant impact, according to experts.

The rules, which were approved by the Securities and Exchange Commission and the Federal Reserve governors yesterday and by three other federal agencies the day before, eliminated a requirement that borrowers make a 20 percent down payment if a bank doesn't hold at least 5 percent of the mortgage securities tied to those loans. That will make it easier for home buyers to get credit.

Economists said the new rules walk back some of the stringent requirements put in place in the wake of the 2008 financial crisis.

"The reaction to the housing crisis was to shut off the tap for credit almost completely," said Stephanie Karol, a U.S. economist with IHS Global Insight. "It's a more sensible attitude towards credit for homeowners."

Federal officials said the rules will open up the mortgage market while protecting investors.

Still, the rules, which take effect in a year, will not make an immediate impact if the housing market stays the same.

Because it is still a seller's market, with demand for homes outpacing supply, lowering the amount required for a down payment will not make buyers with high down payments or all-cash buyers less attractive, Karol said.

Risky mortgage practices widely blamed for the financial crisis, including mortgages without any supporting documents from borrowers, have been excluded from the definition of a qualified mortgage in the new rules.

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The Ticker

Postal workers appeal to Harvard president

The postal workers union wants Harvard University's president to oppose a deal between Staples Inc. and the U.S. Postal Service that offers services in some stores or resign her seat on the office supply chain's board.

The American Postal Workers Union on Tuesday took out a full page ad in The Crimson, the university's daily student newspaper, saying Harvard's involvement with Staples "sullies" its reputation.

The union, which represents some 200,000 workers, says Harvard President Drew Gilpin Faust should use her board influence to end what it describes as a "no-bid deal" between Staples and the U.S. Postal Service that effectively "outsources" postal service work to the company.

FedEx, UPS boosting seasonal hires

Facing an even bigger mountain of packages this holiday season, FedEx and UPS are hiring more workers to avoid the delays that frustrated shoppers and gift-recipients a year ago.

Last December, the delivery giants were caught off-guard by bad weather and a surge in last-minute online shopping. An estimated 2 million packages were late at Christmas.

FedEx Corp. yesterday said it expects deliveries between Thanksgiving and Christmas Eve to rise 8.8 percent over last year, to 290 million shipments. FedEx is predicting a peak of 22.6 million shipments Monday, Dec. 15.

Tobacco co. nixes workplace smoking

Camel cigarette maker Reynolds American Inc. is snuffing out smoking in its offices and buildings. The nation's second-biggest tobacco company informed employees yesterday that beginning next year, the use of traditional cigarettes, cigars or pipes will no longer be permitted at employee desks or offices, conference rooms, hallways and elevators. Lighting up already is prohibited on factory floors and in cafeterias and fitness centers.

TODAY

• Labor Department releases weekly jobless claims.
• Southwest Airlines Co., General Motors Co., Amazon.com Inc. and others report financial results.

TOMORROW

• Labor Department releases expanded Massachusetts employment data for the third quarter.
• Commerce Department releases new home sales for September.
• Ford Motor Co., Procter & Gamble Co. and others report financial results.
• FORGE Worldwide has appointed Christine Kalish, left, as digital producer. In this new position, Kalish will be responsible for project planning and production of digital media for all of the agency's clients.
• Advanced Cell Technology Inc., a leader in the field of regenerative medicine, announced the appointment of LeRoux Jooste to the newly created position of senior vice president of business development and chief commercial officer.

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Penthouse price tag shatters Boston record

The high life in the Hub has never been loftier than the staggering $37.5 million room with a view Millennium Partners is now offering — a record-breaking price for the entire top floor of the soaring 60-story Millennium Tower Boston.

And that includes just a raw shell, unfurnished — albeit 12,846 square feet of space with a wraparound outdoor terrace and 360-degree city views.

"It's a blank canvas for an owner to create a masterpiece," partner Richard Baumert said.

Although it's still under construction, demand already is high for the 625-foot glass tower's 442 condos in Downtown Crossing, which start at $850,000 for a 759-square-foot unit, according to Baumert.

Before the sales office opened to the public today, Millennium had 150 units under contract. They include three penthouses going for more than $9 million each, with the top price at $9.91 million.

"The response has been overwhelming, both in interest and tours, and sales," Baumert said.

Millennium Partners is enticing buyers with five-star amenities: 24-hour valet and concierge service, and a two-level club with a fitness center, lap pool, billiards room, library and lounge. A private-dining menu will feature Michelin-starred chef Michael Mina's "greatest hits" from all of his restaurants.

"The only place in the country where you can get these dishes on the list is here," Baumert said.

Millennium Tower Boston is rising in the former construction hole that long dogged Downtown Crossing as part of a $689 million project that includes the redevelopment of the former Filene's building.

Millennium's $37.5 million penthouse price translates to $2,919 per square foot. This year's city record is $2,744 per square foot for finished space: a 10-room condo at the coveted Carlton House at 2 Commonwealth Ave. that faces the Public Garden and sold for $8.5 million in May, according to Boston real estate agent David Bates.

"If they sell that penthouse, that will be the highest sale in the city's history by a long shot," Bates said. "There was some speculation if Boston was going to have its first $20 million sale, and now they're going to put this out at $37.5 million."

But the penthouse is unique, according to Bates.

"With people who have that money, they like a story around the lifestyle," he said. "You're not going to have anything else that's 60 floors up and be able to occupy the whole top floor."

The three tower penthouses already under contract also are raw space and are going for more than $2,200 per square foot.

Millennium knows "how to present," Bates said.

"They just go to an extra length," he said. "They have a doorman on the sales center. They're already trying to set the tone of what they want you to feel."

The "Millennium experience" is derived from the company's partnerships with luxury hotel chains Ritz-Carlton and the Four Seasons, Baumert said: "We've taken the best of their services … and branded ourselves. That really, for us, is the evolution of residential luxury living."

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Gaming foes can’t come close in TV buys

The group working to repeal the state's casino law will likely be unable to match the multimillion dollar ad blitz from a group of gaming powerhouses — now including Wynn Resorts —that in the past month have spent $2.7 million on TV spots touting jobs.

"We're uncertain at this point, but we're still hopeful, I think we still have time," John Ribeiro, chairman of the Repeal the Casino Deal committee, said of running an ad in the two weeks left before the Nov. 4 election.

The repeal committee — which has been at a marked fundraising disadvantage — took in $124,947 from Oct. 2 to Oct. 15, a good chunk of which went to pay outstanding liabilities, according to campaign finance records.

Meanwhile, the pro-casino committee took in a whopping $4.5 million in the same time period, including $1 million from Wynn Resorts, the first donation from the Vegas powerhouse.

Ribeiro expressed optimism a win is within reach even without TV ads.

"The more I look at this, I think we can win without being on TV," Ribeiro said. "Our ground forces truly do grow every day. We've got people clamoring for signs all over the state. It's really an organic movement."

But Ribeiro's group faces an uphill battle — a Suffolk University/Boston Herald poll earlier this month showed nearly 53 percent of voters favor casinos, while 38 percent want to repeal the state's gaming law.

The pro-casino group made four media buys this month through GMMB, an influential Washington, D.C., firm. The most recent buy was for $1.34 million on Oct. 14, and more ads are coming, said Justine Griffin, spokeswoman for the No on 3 Committee.

"We believe the more people learn, the more support is likely to grow, and we plan to continue our efforts over the next two weeks," Griffin said.

David Paleologos, director of the Suffolk University Political Research Center, said it is going to be a struggle for repeal backers to win without television ads.

"Unless you have a viable alternative strategy, you need to be on TV to counter the ads that are being run," Paleologos said. "You never say never, because you don't know what events or news stories might be generated between now and then, but it makes the effort that much more difficult."

The opposition is largely funded by MGM, which has a license to build a casino in Springfield, and Penn National, which is building a slots parlor at the Plainridge Race Track in Plainville. Wynn was initially hesitant to get involved in the repeal fight, but changed its tune after the state Gaming Commission picked its $1.6 billion Everett plan for the only Boston-area casino license.

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Mayor Martin J. Walsh seeks global partnerships, startups

Mayor Martin J. Walsh, hosting attendees from 14 countries at a State House conference yesterday, said Boston can't just rely on home-grown businesses to fuel its economy.

"Boston and Massachusetts cannot operate in silos," Walsh said. "It's so important to build relationships."

Walsh said the city has received 16 initial pro­posals for its startup incubator in the soon-to-be unveiled Ferdinand Building in Dudley Square. The building will house the new headquarters for the Boston Public Schools, but will include up to 4,000 square feet for startups.

"Hopefully it's the beginning of many incubators we're going to have in and around the Boston area," he said. "We are looking to continue to start and develop businesses here in Boston."

But, he said, Boston needs to continue growing its "global economy. We must be willing to form partnerships with like-minded cities," he said.

One of those cities is Belfast, where Walsh traveled in September and signed a sister city agreement.

As in Boston, health care is one of the leading industries in Belfast, said the Lord Mayor of Belfast, Nichola Mallon.

"We will be discussing the economics and skill sectors of both of our cities, and e-health will feature highly," she said. "We are committed to making that sister city agreement work."

The conference is Mallon's first international visit.

State Senate President Therese Murray agreed. "To continue to grow, collaboration is key," she said.

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Market Basket back on track after delays

Market Basket's newest store opens Sunday at 7 a.m. in Revere — more than a year after it was completed and ready for business in July 2013.

The store's opening — and progress on others — was stalled by infighting among Market Basket's directors and share­holders that triggered the firing of CEO Arthur T. Demoulas and a six-week employee uprising in his support this past summer.

Demoulas gained full owner­ship of the chain in late August and reassumed its helm.

Tewksbury-based Market Basket's next store openings will be in Littleton early next month and Waltham in early December, according to Market Basket operations manager David McLean.

"Then we have a couple of stores that will follow in Attleboro and Athol that will be in the beginning part of 2015 — definitely the first quarter," he said.

Hiring and training employees takes six to eight weeks, and the upcoming holidays will interrupt the process. But, aided by the publicity surrounding the employee and customer rallies, the chain has seen heightened interest from job-seekers, according to McLean.

"So many have said, 'We've heard such great things about Market Basket, and we want to be part of it,'" he said. "I think it's the same sentiment that a lot of customers have expressed who shop with us. They want to support a business … that cares very deeply about their associates."

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