Is Dunkin' Brands Finally A Value To Investors?
Alpha Gen Capital
Alpha Gen Capital
Dunkin' Brands: Portfolios Can Run On Dunkin'
Tue, Apr. 5, 9:08 AM
- Evercore ISI Group initiates coverage on Starbucks (NASDAQ:SBUX) and Wendy's (NASDAQ:WEN) with Buy rating after a full scan of the restaurant sector.
- The investment firm sets Hold ratings on Domino's Pizza (NYSE:DPZ), Jack in the Box (NASDAQ:JACK), McDonald's (NYSE:MCD), and Yum Brands (NYSE:YUM).
- On watch today for a dip is Dunkin' Brands (NASDAQ:DNKN) which catches the lone Sell rating today from Evercore.
- Now read Why I'm Not Falling In Love With Dunkin' Brands
Mon, Mar. 28, 5:14 PM
- These are stocks rated Outperform by Credit Suisse in which the bank's price target differs greatly from Street consensus.
- Agios Pharmaceuticals (NASDAQ:AGIO) has a PT of $66 at CS vs. the Street at $52.40 and current price of $37.91. Autodesk (NASDAQ:ADSK) a $100 PT vs. the Street at $63.63 and current of $57.37. Box (NYSE:BOX) a $24 PT vs. the Street at $20.14 and current of $12.18.
- Caterpillar (NYSE:CAT) a PT of $72 vs. the Street at $64.61 and current $75.29. Dunkin' Brands (NASDAQ:DNKN) a $50 PT vs. the Street at $46.16 and current $45.32. Kellogg (NYSE:K) a $82 PT vs the Street at $76.47 and current $75.44.
- Manitowoc (NYSE:MTW) a $5.10 PT vs. the Street at $4.03 and current $4.37. Nationstar Mortgage (NYSE:NSM) a $19 PT vs. the Street at $14.19 and current $9.77. Patterson (NASDAQ:PDCO) a $55 PT vs. the Street at $50.33 and current $44.66.
- Sysco (NYSE:SYY) a $50 PT vs. the Street at $43.18 and current $46.24. U.S. Steel (NYSE:X) a $22 PT vs. the Street at $10.97 and current $15.78.
- Of this group, Box, Inc. in the only one with a majority-Buy rating. Not surprisingly, CS has higher earnings estimates than consensus for both this year and next.
Mon, Mar. 28, 9:53 AM
- McDonald's (MCD +0.5%) continues to test different delivery options including using third-party provider Postmates.
- The company is assessing demand for the service and if a workaround solution might exist other than sending a third-party provider into a store to stand in line, according to Chief Digital Officer Atif Rafiq.
- Other fast-food chains are also on the verge of making some major changes to their business model as they walk the tightrope between expanding digital ordering and store operations. Last week at the New York Auto Show, the concept of a Domino's Pizza (NYSE:DPZ) food truck loaded with ovens was tipped. The new concepts under consideration coincide with weak store traffic trends across the industry.
- Other companies with an eye on innovation include Panera Bread (NASDAQ:PNRA), Dunkin' Brands (NASDAQ:DNKN), Noodles (NASDAQ:NDLS), Wendy's (NASDAQ:WEN), Burger King (NYSE:QSR), Taco Bell, Qdoba (NASDAQ:JACK), and Buffalo Wild Wings (NASDAQ:BWLD). Starbucks (NASDAQ:SBUX) may be a step ahead of the pack with a Postmates pilot program in Seattle running and its mobile ordering business thriving.
Thu, Mar. 10, 2:59 PM
- Restaurant same-store sales increased 0.4% in February to break back into positive territory after a down month in January, according to tracking from Black Box Intelligence.
- Same-store traffic was down 1.3% during the month. The shift of the Super Bowl into the February reporting period was a negative factor.
- Average guest check was up 1.8%. Though solidly positive, the amount is a deceleration in spending from recent months. The lower mark could be an indication that chains are focusing on pricing and promotions in an effort to drive traffic.
- BBI expects a rebound in March sales.
- Restaurant stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH LUB, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, SHAK, HABT, NDLS, BOJA, PBPB, PLKI, FRSH, RAVE, LOCO, TACO, PZZA, KONA, BGR, BJRI, CHUY, FRS, CBRL, GTIM, TAST, ARKR, WING, BOJA, ZOES, PLAY, FOGO, ARCO.
Wed, Mar. 9, 2:14 PM
- Dunkin' Brands (DNKN +0.2%) announces it signed a new 20-unit deal with Alimentacion Mexico Americana to continue the expansion of the Dunkin' Donuts chain into Mexico.
- The company has plans to add 150 Dunkin' Donuts outlets in Mexico over the next several years.
- Aggressive growth by Dunkin' Brands in international markets and on the West Coast of the U.S. is a major part of the bull case on the restaurant stock.
- Related: Dunkin' Brands: Analysts Are Missing A Key Point (Feb. 12)
- Related: Plenty More Upside Ahead For Dunkin' Brands (Feb. 2)
Mon, Mar. 7, 8:37 AM
- Guggenheim Partners downgrades Dunkin' Brands (NASDAQ:DNKN) to a Neutral rating after having it set at Buy.
- The investment firm sees a limited supply of earnings drivers in the short term.
- SA contributor Adelphi Venture Capital is more optimistic on DNKN, noting that low coffee commodity costs are helping to boost margins and West Coast expansion provides upside.
Fri, Mar. 4, 7:54 AM
- Dunkin' Brands (NASDAQ:DNKN) CEO Nigel Travis tells Reuters the company is using $5 Dunkin' Donuts gift cards as an opening salvo in a war to win over Starbucks (NASDAQ:SBUX) customers.
- Starbucks is seen as slightly vulnerable due to its shift to a dollar-based loyalty program from one that used a transaction count to dole out freebies.
- "We feel excited about the change to Starbucks' loyalty program," says Travis.
- Previously: Starbucks tightens policy on rewards giveaways (Feb. 22 2016)
- Previously: The math behind the Starbucks rewards switch (Feb. 23 2016)
Tue, Feb. 23, 1:35 PM
- Maxim Group thinks the Dunkin' Donuts (NASDAQ:DNKN) chain will benefit from the new loyalty program changes at Starbucks.
- "We believe that customers with a lower average dollar spend will shift visits to DNKN, which we argue has a more generous rewards program," reads the Maxim note.
- Earlier this month, the company forecast 0% to 2% comparable-store sales growth for the DD brand during the current fiscal year.
Thu, Feb. 11, 11:25 AM| Thu, Feb. 11, 11:25 AM | 2 Comments
Thu, Feb. 4, 10:02 AM
- Dunkin' Brands (DNKN -1%) is lower after reporting Q4 results.
- The company's U.S. comp fell 0.8% during the period. During the earnings call, execs said it was warmer-than-normal weather, not McDonald's All-Day Breakfast initiative, which cut into sales - although that take doesn't quite jibe with the performance of Starbucks and some other peers.
- The U.S. comp is seen at 0% to 2% for the current fiscal year, below estimates for Starbucks and McDonald's.
- Previously: Dunkin' Brands beats by $0.02, beats on revenue (Feb. 04 2016)
- Previously: More on Dunkin' Brands' Q4 (Feb. 04 2016)
Thu, Feb. 4, 8:36 AM
- Dunkin' Brands (NASDAQ:DNKN) declares $0.30/share quarterly dividend, 13.2% increase from prior dividend of $0.265.
- Forward yield 2.94%
- Payable March 16; for shareholders of record March 7; ex-div March 3.
Thu, Feb. 4, 6:37 AM
- Dunkin' Brands (NASDAQ:DNKN) reports U.S. comparable store sales declined 0.8% in Q4.
- Dunkin' Donuts U.S. revenue increased 8% to $153.06M led by 25.9% growth in franchise fees.
- Dunkin' Donuts U.S. royalty income grew 4.2% to $106.48M.
- Dunkin' Donuts International revenue fell 5.1% to $6.35M.
- Baskin-Robbins U.S. comp was +4.4%.
- Baskin-Robbins U.S. revenue rose 3% to $8.73M led by 81.5% growth in franchise fees.
- Adjusted operating margin rate grew 90 bps to 51%.
- Dunkin' Donuts U.S. has 123 net opening during the quarter to take the number of distribution points up 4.3% Y/Y to 8,431.
- The company added 172 net new restaurants worldwide during the quarter.
- Consolidated global points of distribution +495 Y/Y to 19,357.
- FY2016 Guidance: Dunkin' Donuts U.S. comparable store sales: 0% to +2%; Baskin-Robbins U.S. comparable store sales: +1% to +3%; Revenue:+4% to +6%; Adjusted operating income: +8% to +10%; Adjusted EPS: $2.17 to $2.19; Tax rate: 38.5%.
Thu, Feb. 4, 6:02 AM
- Dunkin' Brands (NASDAQ:DNKN): Q4 EPS of $0.52 beats by $0.02.
- Revenue of $203.8M (+5.5% Y/Y) beats by $0.49M.
Wed, Feb. 3, 5:30 PM
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Sat, Jan. 23, 2:46 PM
- The economic cost of the blizzard hitting the East Coast could run as high as $850M, according to a forecast from Planalytics.
- The tally includes lost productivity and a lower level of consumer spending over the duration of the storm - even after factoring in the impact of consumers stockpiling from chains such as Home Depot (NYSE:HD), Lowe's (NYSE:LOW), Wal-Mart (NYSE:WMT), and Kroger (NYSE:KR).
- The storm is broad enough to impact domestic traffic numbers for restaurant chains (MCD, QSR, WEN, CMG, DENN, DNKN, SBUX) and movie theater operators (RGC, CKEC, CNK, AMC).
- The number of cancelled flights tied to the storm is tracking rapidly toward 10K. U.S. airlines (LUV, AAL, JBLU, UAL, DAL) have become more efficient with managing major storms, but will still take a hit to Q1 revenue.
- Looking ahead: Though harsh U.S. winters have lopped off as much as 1% to 2% from retail sales in the past, the 2015-2016 season still sits comfortably in the historical range used by economists when making their projections.
- Previously: Blizzard rally for HD, LOW, BGG, TTC, ACAT, COLM, and BDE (Jan. 22)
- Previously: Storm alert for Shake Shack and Dunkin' Donuts (Jan. 22)
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, IYC, FXD, PEJ, FDIS, RHS, FSTA, SCC, UCC, RCD, PMR, PEZ, UGE, PSL, PSCC, PSCD, SZK, BITE
Fri, Jan. 22, 11:57 AM
- Shake Shack (SHAK +1.2%) and Dunkin Donuts (DNKN -0.3%) are the two restaurants companies that could see the largest weekend sales impact from this weekend's East Coast winter storm.
- Both chains could see reduced traffic with over 60% of their stores located in the broad path of the storm. In previous years, winter storms have trimmed just enough sales to lead to revenue misses on unadjusted analyst estimates.
- Bloomberg Intelligence notes that pizza chains (DPZ, PZZA) could see a small bump in business in the storm-impacted states as delivery orders increase.
- The restaurant sector is heading into a February sales comparable which was reduced by heavy storms in the Northeast last year.
- Previously: Blizzard rally for HD, LOW, BGG, TTC, ACAT, COLM, and BDE (Jan. 22 2016)
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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