Is Dunkin' Brands Finally A Value To Investors?
Alpha Gen Capital
Alpha Gen Capital
Wed, Sep. 14, 11:22 AM
- Data from NPD Group indicates that 11% of millennials use craft coffee brewing to satisfy their daily coffee cravings.
- It's a trend to watch with younger consumers representing 44% of at-home craft coffee brewers of which a third live in urban areas.
- It's not clear if the increase in at-home craft coffee consumption is peeling away meaningful packaged coffee sales or store traffic to chains, but there could be a reputational risk to national brands on quality in the future.
- Related tickers: SBUX, DNKN, SJM, QSR, MCD, MDLZ, KKD, WWAV, JVA, OTCQB:JAMN, OTCQB:BCCI, FARM, OTCPK:NSRGY.
- ETFs: JO, CAFE.
Sat, Sep. 10, 12:17 PM
- The sluggish trend continues in the restaurant sector with same-store sales down 0.6% in August, according to the latest read from Black Box Intelligence.
- Same-store traffic was 2.7% lower Y/Y during the month to improve on the 3.9% drop recorded in July. Average guest check across the industry was up 2.3% to help offset for some of the loss of customers.
- Another weak month in the Southwest (sales -5%, traffic -7%) doesn't bode well for chains with a high concentration of stores in Texas.
- Though the broad read from analysts is that consumer spending is still tight in the U.S., there are also some concerns that restaurant chains are having trouble building brand loyalty with millennials giving their business to independent eateries.
- 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, STKS, WING.
- Related ETF: BITE.
Mon, Aug. 22, 2:03 PM
- Dunkin' Donuts announces it reached a milestone of 5M DD Perks Rewards Program members as momentum for the loyalty program stayed strong.
- The chain's loyalty program has been in the spotlight after Q2 same-store sales failed to impress, despite a controversial change to the loyalty program at rival Starbucks.
- Shares of Dunkin' Brands (NASDAQ:DNKN) are up 1.89% on the day to $48.53.
Thu, Jul. 28, 2:09 PM| Thu, Jul. 28, 2:09 PM
Thu, Jul. 28, 8:53 AM
- Donald Trump said he would like to raise the federal minimum wage to $10 per hour. The surprising disclosure came at a press conference yesterday in Florida, although he seemed to walk it back a bit later in the day.
- Hillary Clinton supports a $12 per hour national level, but is open to state and cities that go higher with the minimum wage.
- A higher federal minimum wage could pressure restaurant chains operating in states where the lowest pay scale in nearer to the $7.25/hour floor.
- Related stocks: CBRL, DNKN, DPZ, JACK, MCD, RT, WEN, BOBE, TACO, RAVE, BH, PLAY, IRG, DIN, PZZA, PLKI, SONC, LOCO, FRSH, BOJA, FRGI, WING, PBPB, NATH, FRS.
- Related ETF: BITE.
Wed, Jul. 27, 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.