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Dunkin' Brands: Looking Ahead To The Company's Q2 Earnings

Heather Ingrassia profile picture
Heather Ingrassia
1.29K Followers

Summary

  • Analysts expect DNKN to earn $0.47/share in terms of EPS when the company announces its Q2 results on July 24.
  • Recent trend behavior could improve during the second half of the year if DNKN can meet and/or exceed analysts' earnings expectations for the upcoming quarter.
  • If DNKN can demonstrate a steady increases in its same-store sales, then it should have no problem exceeding both EPS and revenue estimates during the second quarter.

As one of the major names in the quick-service restaurant sector gets set to report their quarterly results later this week, I wanted to take a closer look and share my thoughts on what needs to happen in order for Dunkin' Brands (DNKN) to meet and/or surpass analysts' expectations.

Company Overview

Headquartered in Canton, Massachusetts, Dunkin' Brands along with its subsidiaries, owns, operates, and franchises quick service restaurants under the Dunkin' Donuts and Baskin-Robbins brands worldwide. The company operates in four segments: Dunkin' Donuts U.S., Dunkin' Donuts International, Baskin-Robbins International, and Baskin-Robbins U.S. Its restaurants offer hot and cold coffee, donuts, bagels, muffins and sandwiches, hard-serve ice cream, frozen beverages, baked goods, and other products.

Recent Trend Behavior

On Tuesday, shares of DNKN, which currently possess a market cap of $4.65 billion, a forward P/E ratio of 20.85, and a dividend yield of 2.10% ($0.92), settled at a price of $43.74/share. Based on a closing price of $43.74/share, shares of DNKN are trading 2.92% below their 20-day simple moving average, 2.54% below their 50-day simple moving average, and 6.98% below their 200-day simple moving average.

Although these numbers indicate a short-to-long term downtrend for the stock, which generally translates into a selling mode for most near-term traders and many long-term investor, I strongly believe if the company can demonstrate a better-than-expected earnings performance when it announces Q2 results on July 24, there's a very good chance the company's trend behavior will reverse course and begin to move in a very positive direction.

Upcoming Earnings Outlook

When it comes to the company's upcoming Q2 earnings, there are a number of things potential investors should consider. For instance, analysts are currently calling for DNKN to earn $0.47/share in terms of EPS (which is $0.12/share higher than what the company had reported during Q1 2014, and $0.20/share better than what the

This article was written by

Heather Ingrassia profile picture
1.29K Followers
I'm A 31 Year-Old Stay-At Home Mom, Who Enjoys Writing About And Establishing Income-Driven Strategies Within Numerous Sectors. My Husband And I Are Happily Married (January 2015) And I Currently Reside In The Greater New York Area.

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