The America fastest growing quick-service restaurant is looking forward to expand more and more.
On February 2, 2016, Dunkin Brand Group Inc.'s Dunkin' Donuts closed the deal for multi-unit store development with Panama City Donuts, LLC -an existing franchise group. The deal's objective is to set up five new restaurants in New Orleans, Louisiana.
The team will be managed and led by Vik Patel who is a franchisee with Dunkin' Donuts for ten years and he currently operates 36 restaurants; 33 in Florida, three in Louisiana, and two in Alabama. Earlier in 2015, Patel had signed up for building two new restaurants in Baton Rouge. One of the five restaurants is likely to be open for business in 2017. Also, the team will purchase two existing restaurants in New Orleans. Vik Patel is excited about the upcoming project as well. He has stated that his team is dedicated to Dunkin' Donuts brand and will take measure to take the brand at the height of success.
Grant Benson, CFE, vice president of global franchising and business development, Dunkin' Brands has said that the company's keen franchisees have significant role for company's growth which resultantly has given a strong position to the company in the quick-service restaurant industry and has taken the company among the fastest growing brands. He further added that he is enthralled by Patel's decision to take his team in the Louisiana market. He anticipated that the new restaurants will meet the growing demands of the consumers and provide satisfactorily services.
The new restaurants will have unique and distant archit. The company lets the franchisee to create a restaurant according to their own taste. It appreciates them to choose color schemes, graphics, furniture, and layout in such a way to make the restaurants more appealing.
All in all, the decision of building more restaurants will be beneficial for the company and reap high returns for it. It will not only male the brand more popular but it will affect the profitability of the company. Recently, USA Hockey signed a multi-year partnership with Dunkin' Donuts which has made the latter to be the Official Coffee Shop of USA Hockey and the U.S. Women's National Team. Through the agreement, Dunkin' Donuts will sponsor the U.S. Women's National Team in major events including 2017 International Ice Hockey Federation Women's World Championship and the 2017 Women's Four Nations Cup. Resultantly, America's most favorite coffee shop will get recognition in USA Hockey Magazine -which has large distribution across the world -and during U.S.A's Hockey's National Championship.
In a nutshell, the two initiatives will help surge the revenue of the company. Dunkin Brands Group Inc. is also scheduled to report its earnings on Thursday, February 4, 2016. Analysts expect the revenue to upswing due to the online business initiatives and menu innovation. What else does the company have to say about its future plan will unfold during the earnings call.
Currently, Robert Baird analyst has rated Dunkin Brands stock at "Outperform." In addition, the Wall Street Analysts have unanimously given the price target of $47.