Thu, Jan. 8, 1:38 PM
- The National Retail Federation is urging Congress to pass H.R. 30 to restore the traditional 40-hour work week standard for healthcare benefits.
- Healthcare benefits as defined under the Affordable Care Act are applied at the 30-hour level.
- CBO estimates on the impact of H.R. 30 (.pdf)
- Related stocks: MCD, QSR, WEN, JACK, DNKN, SONC.
Thu, Jan. 8, 11:42 AM
- Dunkin' Brands (DNKN +1.3%) plans to open 1.4K Dunkin' Donuts restaurants in China over the next two decades in an aggressive expansion strategy.
- The chain currently has about 16 outlets operating in the region.
- The first new restaurant is expected to be opened during Q4.
- What to watch: The China path has been far from smooth for U.S. fast-food chains KFC and McDonald's, although Dunkin' Donuts' relies less on meat suppliers which could work in its favor.
- Also on Dunkin' Donuts global expansion: Dunkin' Donuts rolls into Mexico (Jan. 05 2015)
Mon, Jan. 5, 11:08 AM
Dec. 31, 2014, 11:33 AM
- Consumer spending: More consumers say they are willing to trade-up to a traditional dining spot from fast-casual than trade-down to a fast-food option, according to Technomic. The revelation takes some of the steam away from the argument that lower gas prices will boost traffic at major fast-food chains.
- IPOs: Profitable 2014 launches by Zoes Kitchen (ZOES -0.2%) and Habit Burger (HABT -0.5%) could inspire other private chains to go public. Shake Stack (Pending:SHAK) got an early jump by filing this week for an IPO.
- Labor costs: Analysts see a risk to profitability in the sector from the wave of minimum wage laws set to go into effect over the next year. Some analysts think President Obama will push for federal legislation with the issue hard for election-minded Republicans to oppose strongly.
- Fast-casual pizza: A breakout of a fast-casual pizza concept is widely expected in 2015 (candidates).
- Chipotle: Another +30% run for the Mexican chain off of sizzling comps leaves it with limited upside, according to some analysts. Chipotle (CMG +0.8%) execs don't agree, noting during the Q3 earnings call (transcript) that enormous upside exists to maximize peak transactions per hour (350-400). Beef, cheese, and avocado pricing will be key for CMG next year as well.
- Restaurant stocks: CAKE, CBRL, 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.
Dec. 24, 2014, 9:57 AM
- The restaurant industry will run up against soft comps in January and February due to last year's winter storms which were much worse than normal.
- Restaurant same-store sales will rise just over 2% for the full year, according to an estimate from the co-founder of the NRN-MillerPulse tracking survey.
- Technomic sees a 3% growth in restaurant comps in 2015, while Fitch Ratings has an outlook for 2% to 3%.
- On the cost side, commodity prices for chicken, cheese, wheat, and pork are all expected to moderate. However, beef prices are seen increasing 4% to 8%.
- Minimum wage increases in many state kick in on January 1 which could impact the bottom line for many chains.
- Fresh IPOs, concept acquisitions, and leveraged buyouts care expected to be major themes in 2015, according to analysts.
- CEOs on the hot seat include Don Thompson at McDonald's (NYSE:MCD) and Nigel Travis at Dunkin' Brands (NASDAQ:DNKN).
- Restaurant stocks: CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, BOBE, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR.
Dec. 18, 2014, 9:29 AM| 1 Comment
Dec. 18, 2014, 9:14 AM| 9 Comments
Dec. 18, 2014, 7:08 AM
- Dunkin' Brands (NASDAQ:DNKN) announces financial targets for 2015.
- Guidance from the restaurant operator includes revenue growth of 5% to 7% and operating income growth of 6% to 8%.
- Comparable-store sales are expected to rise 1% to 3% at both the Dunkin' Donuts and the Baskin-Robbins chains.
- The company sees adding 410 to 440 Dunkin' Donuts U.S. stores and 5 to 10 Baskin-Robbins outlets. The international store count is forecast to increase by 200 to 300 units.
- 2015 EPS is pegged at $1.88-$1.91 vs. $2.02 consensus.
Dec. 1, 2014, 3:30 PM
- The National Restaurant Association's Restaurant Performance Index gained 1.8% M/M in October to 102.8.
- The poll of restaurant operators indicated 55% saw improved traffic trends in October.
- Once again, food commodity expenses and rising labor costs are viewed as potential drags.
- The positive read on the sector came before the November slide of gas prices which is viewed as a potential driver for restaurant traffic and spending.
- Restaurants stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN.
Nov. 29, 2014, 10:29 AM
- Analysts with Gasbuddy.com predict some gas stations in the U.S. will offer $2 per gallon gas by Christmas.
- The last time the average price of gas in the U.S. was below $2 was in March of 2009.
- Forecasts from economists vary widely on the overall gas benefit to consumers for Q4. The high end from the group is an outlook of $300 per household, while the low end is closer to $100.
- Most analysts see an immediate lift for retail chains with large distribution channels. Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Costco (NASDAQ:COST), Dollar General (NYSE:DG), Family Dollar (NYSE:FDO), Dollar Tree (NASDAQ:DLTR), Big Lots (NYSE:BIG), and Five Below (NASDAQ:FIVE) come to mind.
- Airline stocks (JBLU, DAL, UAL, LUV, AAL, RJET, ALK, HA, ALGT, VA) have already ripped strong gains off the OPEC news, although some see even more long-term upside as forward fuel hedges get reworked.
- A sustained period of low gas prices should lift restaurant stocks (CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN) say some analysts.
- The gaming sector is (CZR, PNK, BYD, ISLE, CNTY, MCRI, MGM, NYNY) also an off-the-radar pick to bounce.
Nov. 25, 2014, 1:12 PM
Nov. 18, 2014, 3:24 PM
- The NPD Group reports restaurant traffic was flat in Q3.
- Spending was up 3% during the quarter as average tickets were up across segments.
- Traffic growth by category: Fast-casual +8%, Coffee/donut/bagel +5%, Mexican quick service +5%, hamburger quick service -3%, sandwich concepts -1%, Asian quick service -1%.
- Restaurant stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN.
Oct. 31, 2014, 1:21 PM
- The odds aren't good for a national roll-out of smartphone payments solution CurrentC, according to USA Today's Jeff Graham.
- The retail consortium admitted to a hacking incident earlier this week and has lost momentum with Apple Pay dominating headlines.
- Inside the network, Meijer broke ranks with fellow MCX members by moving to accept Apple Pay with its hardware.
- CurrentC was created to help the retail industry bypass credit card fees.
- Partial list of MCX members: LUV, GPS, DNKN, KR, TGT, WMT, BBBY, KSS, SHLD, WEN, BBY.
Oct. 23, 2014, 7:00 AM
- Dunkin' Brands (NASDAQ:DNKN) reports a 2.0% comparable-store sales gain for its Dunkin' Donuts brand and a 5.8% lift in the Baskin-Robbins lift during Q3.
- International sales at comparable stores fell for both chains during the period.
- Net store openings: Dunkin' Donuts U.S. +120, Dunkin' Donuts International +10, Baskin-Robbins U.S. +6, Baskin-Robbins International +61.
- Guidance: The company sets long-term targets of 6%-8% revenue growth and 10%-12% adjusted operating income growth.
Oct. 23, 2014, 6:07 AM
Oct. 23, 2014, 6:02 AM
DNKN vs. ETF Alternatives
Dunkin Brands Group Inc is a franchisor of quick service restaurants serving hot and cold coffee and baked goods, as well as hard serve ice cream. The Company franchise restaurants under its Dunkin' Donuts and Baskin-Robbins brands.
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