What's moving markets today: May 2, 2019

Dunkin' has upped its coffee game and rolled out new breakfast deals, and it's paying off.

The company announced on Thursday that sales in US stores open at least a year jumped 2.4% in the first quarter, beating analysts' expectations, thanks in part to higher-priced espresso and frozen drinks and its breakfast sandwich value deals.

Breakfast is a growing category, and Dunkin' (DNKN) is doing more than just offering deals to try to cash in. On Monday, the chain shared that it has has added two new breakfast bowls to its menu: The Egg White Bowl and the Sausage Scramble Bowl. Its competitors are also introducing new breakfast items to their menus.

Revenues for the first quarter grew about 5.9% to $17.7 million, or 5.9%, largely because of higher royalty and rental income, the company said.

Investors rewarded the good results: Dunkin' popped about 2% before the market opened.

They don't seem to care about Dunkin's struggling ice cream business. In the first quarter, sales at Baskin-Robbins US stores open at least a year fell sales dropped 2.8%.

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