Is Dunkin' Brands Finally A Value To Investors?
Alpha Gen Capital
Alpha Gen Capital
Dunkin' Brands: Portfolios Can Run On Dunkin'
Yesterday, 10:04 AM
- Dunkin' Donuts (NASDAQ:DNKN) will launch an aggressive campaign to sell cold brew iced coffee across U.S. stores next week.
- The cold brew drinks will sell at about a $0.50 premium to regular iced coffee (brewed hot then cooled) and will undercut the pricing at rival Starbucks.
- The timing of the cold brew launch is strategic with a change to Starbucks loyalty program giving Dunkin' Donuts an opening to attempt to crack the SBUX loyalty factor.
- Dunkin' Brands trades roughly at the mid-point of its 52-week range of $36.44 to $55.34.
Thu, Jul. 21, 3:14 PM
- Dunkin' Brands (DNKN -1%) slips after reporting Q2 earnings.
- The Dunkin Donuts chain lost breakfast market share in the quarter with the All-Day Breakfast initiative at McDonald's and $1 Value Menu at Taco Bell seen as significant competitive forces.
- Shares of DNKN have been sputtering along in the mid-$40s for the better part of the last four months.
- Previously: Dunkin' Brands beats by $0.01, misses on revenue (July 21)
- Previously: More on Dunkin' Brands' Q2 (July 21)
Thu, Jul. 21, 6:27 AM
- Dunkin' Brands (NASDAQ:DNKN) reports U.S. comparable store sales growth of 0.5% in Q2.
- Dunkin' Donuts U.S. revenue grew 2.6% to $153.66M.
- Dunkin' Donuts U.S. royalty income +5.3% to $112.03M.
- Dunkin' Donuts International revenue dropped 3.7% to $5.22M.
- Baskin-Robbins U.S. comp rose 0.6%.
- Baskin-Robbins U.S. revenue decreased 2.9% to $13.74M.
- Baskin-Robbins International revenue declined 2.1% to $34.84M.
- Adjusted operating margin rate increased 280 bps to 51.5%.
- Dunkin' Donuts U.S. has 73 net opening during the quarter to take the number of distribution points up 4% Y/Y to 8,573.
- The company added 198 net new restaurants worldwide during the quarter.
- Consolidated global points of distribution +574 Y/Y to 19,669.
- FY2016 Guidance: Dunkin' Donuts U.S. comparable store sales: 0% to +2%; Baskin-Robbins U.S. comparable store sales: +1% to +3%; Revenue:+3% to +5%; Adjusted operating income: +8% to +10%; Adjusted EPS: $2.20 to $2.22; Share count: 93M; Tax rate: 38.5%.
Thu, Jul. 21, 6:08 AM
Thu, Jul. 21, 6:01 AM
Wed, Jul. 20, 5:30 PM| Wed, Jul. 20, 5:30 PM | 13 Comments
Mon, Jul. 18, 2:44 PM
- BJ's Wholesale Club and Dunkin' Brands (DNKN +0.1%) plan to collaborate together on an initiative to replace BJ's in-store food courts with Dunkin' Donuts kiosks and shops.
- The number of new Dunkin' Donuts locations to be opened hasn't been disclosed.
- The two Massachusetts-based companies share a considerable amount of geographic overlap.
Fri, Jul. 15, 11:25 AM
- The restaurant sector continues to face pressure in generating traffic and with labor costs rising, but commodity prices are working in its favor as of late.
- The slide in prices in Q2 was 64% on eggs, 20% for dairy, 15% for beef, 12% for cheese, and 11% for chicken, according to analysis from Evercore.
- "Commodities continue to benefit margins with the breakfast (restaurant) day-part benefiting the most," noted Evercore analyst Matt McGinley earlier this week.
- While each company hedges commodity costs differently, the general trend of lower costs is favorable for a host of chains - including Denny's (NASDAQ:DENN), Starbucks (NASDAQ:SBUX), Dunkin' Donuts (NASDAQ:DNKN), Domino's Pizza (NYSE:DPZ), Cheesecake Factory (NASDAQ:CAKE), Panera Bread (NASDAQ:PNRA), IHOP (NYSE:DIN), Wingstop (NASDAQ:WING), Bojangles (NASDAQ:BOJA), Kripsy Kreme Doughnuts (NYSE:KKD), and Steak 'n Shake (NYSE:BH).
- Related ETF: BITE.
Thu, Jul. 14, 9:34 AM
- Niantic Labs appears set to allow businesses to officially sponsor locations for in-game activities for Nintendo's (OTCPK:NTDOY, OTCPK:NTDOF) Pokémon, according to media reports.
- That's not news to followers of Reddit posts which dug deep into the Pokémon code to discover bits with "McDonald's" already in it (see code here)
- Though the monetization of the Pokémon phenomenon was widely expected, it also has deeper implications for retailers even beyond trying to scrap for foot traffic through establishing Lure modules, PokeStops, and Pokemon Gyms. Pokémon may come and go. The intersection of real-world shopping and augmented reality games is probably here to stay.
- Companies with an eye on augmented reality and location-based entertainment as it relates to increasing traffic run far and wide. Restaurants (QSR, SBUX, MCD, CMG, WEN, NDLS, PNRA, DNKN), store chains (GPS, AEO, ANF, TGT, ROST, DG, DLTR), and movie theaters (AMC, CKEC, IMAX, CNK, RGC) come to mind.
- Google (GOOGL, GOOG) is also keeping track of all the Pokémon developments as it served as an incubator for Niantic Labs up until the Alphabet creation. Recode says it's unclear what stake that Google still has in the software developer.
- Pokémon news on Seeking Alpha
Tue, Jul. 12, 9:16 AM
- Dunkin' Donuts (NASDAQ:DNKN) plans to develop eight new restaurants in Los Angeles, California. The first restaurant under the agreement with Precision Hospitality & Development is planned to open in 2018. The agreement closes out the company's first wave of franchise commitments since announcing the state would be open for franchise sales in January 2013.
- Over the past few years, Dunkin' Donuts has opened more than 30 restaurants and has signed more than 300 restaurants commitments throughout California, reaching one-third of its long-term franchise development goal for the state.
- Expansion on the West Coast of the U.S. is a major part of the long-term investment case for DNKN.
- Source: Press Release
Fri, Jul. 8, 8:52 AM
- Canaccord Genuity warns on a sluggish environment in the restaurant industry during June.
- Channel checks show a decline in sales and traffic which is believed to be due in part to a heightened sense caution from consumers and uptick in gas prices.
- Canaccord estimates that U.S. restaurant same-store sales fell 2.0% to 2.5% in June.
- Restaurant stocks: CAKE, CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, RRGB, RT, SONC, WEN, BWLD, BDL, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, BOJA, PBPB, PLKI, FRSH, RAVE, LOCO, TACO, PZZA, KONA, BGR, BJRI, CHUY, FRS, CBRL, GTIM, TAST,WING, BOJA, ZOES, PLAY, FOGO, ARCO.
- Related ETF: BITE.
Mon, Jul. 4, 7:39 AM| Mon, Jul. 4, 7:39 AM | 5 Comments
Fri, Jun. 17, 3:07 PM
- Susquehanna issued a detailed report on IRI scanner data trends in the food and beverage industry.
- The investment firm noted that soda drink volume fell 2.8% Y/Y for the 12-week period ending on June 5. PepsiCo (NYSE:PEP) volume was down 5%, compared to 1.3% decline for Coca-Cola KO and 1.9% fall-off for Dr. Pepper Snapple (NYSE:DPS).
- K-cup revenue was up 8% for the 12 weeks as J.M. Smucker (NYSE:SJM). Starbucks (NASDAQ:SBUX), and Dunkin' Brands (NASDAQ:DNKN) all showed strong volume amid ongoing pricing pressure. K-cup sales decelerated for Kraft Heinz (NASDAQ:KHC) and could turn negative if pricing pressure sustains.
- In the yogurt category, scanner data over four weeks confirmed that General Mills (NYSE:GIS) is losing market share to Chobani and Danone (OTCQX:DANOY). Susquehanna tips that Chobani may be prepping for a sale.
- General Mills beat out Kellogg (NYSE:K) in the cereal category as its 12-week sales growth of +2.3% easily topped Kellogg's 2.2% decline.
- Pricing with beer is helping to make up for continued volume pressure. Across the sector, pricing was recorded as 2.5% higher for the 12 weeks of data.
- Beer volume: Anheuser-Busch InBev (NYSE:BUD) -1.8%, MillerCoors (OTCPK:SBMRY, TAP) -2.7%, Boston Beer (NYSE:SAM) -2.1%.
- Susquehann'a Pablo Zuniac put together the deep dive into the scanned data.
- Within the F&B sector, he has BUD, THS, WWAV, TAP, and KHC rated at Positive.
Wed, Jun. 15, 10:45 AM
- The cancer agency of the World Health Organization issues a detailed report in which it concludes that drinking coffee doesn't increase the risk of cancer.
- The experts did determine that drinking "very hot" beverages is one probable cause of oesophagus cancer in humans.
- Very hot was defined as 65 degrees Celsius or 149 degrees Fahrenheit. Coffee from some chains is served over that temperature if consumed immediately without any cream added.
- WHO report (.pdf)
- Previously: Coffee to rid itself of 'possible carcinogen' status (June 15)
- Related tickers: SBUX, DNKN, SJM, QSR, MCD, MDLZ, KKD, WWAV, JVA, OTCQB:JAMN, OTCQB:BCCI, FARM, OTCPK:NSRGY.
- ETFs: JO, CAFE.
Wed, Jun. 15, 2:26 AM
- Twenty-five years after classifying coffee as a possible carcinogen leading to bladder cancer, the World Health Organization has reversed course, and is expected to say today that coffee isn't classifiable as a carcinogen.
- WHO is also likely to state coffee has no carcinogenic effects related to other cancers and has even been seen to reduce the risk of liver and uterine cancers.
- Related tickers: SBUX, DNKN, SJM, QSR, MCD, MDLZ, KKD, WWAV, JVA, OTCQB:JAMN, OTCQB:BCCI, FARM, OTCPK:NSRGY
- ETFs: JO, CAFE
Thu, Jun. 9, 6:28 PM
- Same-store sales at chain restaurants fell 0.3% Y/Y in May to record the third consecutive month of negative growth, according to data from Black Box Intelligence.
- Restaurant traffic was down 2.7% during the month. YTD traffic is -2.6% Y/Y.
- A weak performance in areas impacted by the downturn in the energy industry is contributing to the decline in same-store sales.
- There's also been some analysis suggesting that consumers are pushing back against menu price hikes.
- Restaurant stocks: CAKE, CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SONC, WEN, BWLD, BDL, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, BOJA, PBPB, PLKI, FRSH, RAVE, LOCO, TACO, PZZA, KONA, BGR, BJRI, CHUY, FRS, CBRL, GTIM, TAST,WING, BOJA, ZOES, PLAY, FOGO, ARCO.
- Related ETF: BITE.
Dunkin Brands Group, Inc. operates as a franchisor of quick service restaurants, serving hot and cold coffee and baked goods, as well as hard serve ice cream. It operates through four segments: Dunkin' Donuts U.S., Dunkin' Donuts International, Baskin-Robbins International and Baskin-Robbins... More
Country: United States
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