Aug. 26, 2014, 3:57 PM
- Brazil coffee production could end up down 18% Y/Y when the harvest ends next month. A severe drought in the nation has destroyed a large swath of crops.
- The shortfall in the nation is included in a forecast from Citigroup that calls for a global coffee deficit which could last until 2016 and pressure prices.
- Related stocks: GMCR, SBUX, JVA, SJM, KRFT, DNKN
- Related ETFs: JO
Aug. 25, 2014, 1:54 PM
- Larger restaurant chain operators might be looking to buy their way into growth to follow the lead of Burger King Worldwide, speculates MarketWatch.com
- A filtered ranking of the top 10 North American restaurant chains with the best growth of sales per share ended up with Chipotle (CMG) and Buffalo Wild Wings (BWLD +2.1%) at the top of the list.
- Sorting the list by lowest forward P-E ratio leaves Texas Roadhouse (TXRH +1.9%), Cheesecake Factory (CAKE +1.4%), and (perhaps a surprise) Yum Brands (YUM +0.9%) looking like potential M&A targets.
- Other restaurant stocks: CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN.
Aug. 19, 2014, 10:08 AM
Aug. 4, 2014, 2:19 PM
- Strong local demand from coffee-producing nations Brazil, Vietnam, and Colombia could help keep coffee prices elevated this year.
- Overall coffee demand is expected to hit a record this year due in part to rising incomes.
- Though the upsurge in demand is primarily for the lower-priced bean varities, there is also a slow global shift in mix toward the higher-priced Arabica beans under way.
- Starbucks (SBUX +0.6%), Dunkin Brands (DNKN +0.3%), Kraft Foods Group (KRFT -0.3%), and J.M. Smucker (SJM +0.1%) have all increased prices on coffee this year.
- Related ETF: JO
Jul. 29, 2014, 8:16 AM
- NPD Group's long-range forecast for restaurant traffic calls for less than 1% growth annually.
- Breakfast traffic is expected to grow faster than lunch and dinner traffic.
- "Margins are being squeezed, and it’s a battle for share," warns the research firm.
- 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.
Jul. 28, 2014, 8:17 AM
- Dunkin' Donuts (NASDAQ:DNKN) appears to have lost breakfast market share to Taco Bell, Starbucks, and McDonald's this year as the daypart continues to be the mostly hotly contested in the QSR sector.
- CEO Nigel Travis also points to new competition from gas stations and convenience stores as a factor in slowing breakfast sales at the chain.
- Restaurant analysts have cooled off on Dunkin' Brands recently as a result of its uphill battle to grow comp sales.
- Dunkin' Brands conference call transcript
Jul. 24, 2014, 9:18 AM
Jul. 24, 2014, 8:24 AM
Jul. 24, 2014, 7:55 AM
- Dunkin Brands (NASDAQ:DNKN) -5.1% premarket after Q2 revenues came in below expectations, weighed by bad weather and other consumer challenges.
- Q2 U.S. same-store sales rose 1.8% at Dunkin' Donuts shops and climbed 4.2% at Baskin-Robbins; international same-store sales fell 3.1% at Dunkin' shops and slipped 1.6% at Baskin-Robbins locations.
- DNKN cites unseasonably cold and rainy start to the spring season as the main reason for the disappointing growth figures, but says same-store sales gradually improved throughout the quarter with June average weekly sales reaching the highest volume on record.
- However, DNKN cuts its FY 2014 sales targets, now seeing EPS of $1.73-$1.77 from prior guidance of $1.73-$1.83 and $1.80 analyst consensus estimate and revenue growth of 5%-7% from prior 6%-8% to ~$749.5M-$763.8M and $770M consensus.
Jul. 24, 2014, 6:05 AM
Jul. 23, 2014, 5:30 PM
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Jul. 8, 2014, 9:12 AM
- Coffee prices continue to retreat from their highs as improved weather in Brazil and strong output in India pushes up estimates on global output for the robusta and arabica varieties.
- Many coffee sellers have already lifted retail prices (KRFT, SBUX, SJM, DNKN) and could see a benefit if their purchasing contracts get locked-in at lower levels.
- Related ETFs: JO
Jun. 17, 2014, 6:57 AM
- Coffee output in India is forecast to rise after suffering a setback last year.
- Higher production from the region could increase global supply to pressure prices after a drought in Brazil has had major impact on the coffee market.
- Prices on bagged coffee has been increased by a wave of companies including J.M. Smucker and Kraft Foods.
- Wholesale coffee prices still have a big wildcard in the mix with the emergence of El Nino.
- Related stocks: SJM, KRFT, THI, SBUX, GMCR, MCD, JVA, KRFT, DNKN.
- Related ETF: JO
Jun. 11, 2014, 2:11 PM
- A new coffee service app from an Israeli start-up did a soft launch in New York City with positive early results.
- The $45-per-month Cup service gives subscribers unlimited purchases of basic coffee and tea drinks at the 40 participating independent shops. A premium service at $85 per month opens the door for premium espresso and latte drinks.
- Both Starbucks (SBUX -0.4%) and Dunkin' Brands (DNKN -0.6%) have 10X the number of locations that Cup has under its fold so far.
- The firm's goal is to expand out of NYC in the future.
Jun. 9, 2014, 1:46 PM
- Data from NPD Group indicates the average American spends 12 minutes a day on breakfast.
- The highly-contested daypart pits major cereal sellers such as Kellogg (K), Post Holding (POST), and General Mills (GIS) against fast-food chains like McDonald's (MCD), Starbucks (SBUX), Taco Bell (YUM), and Dunkin' Brands (DNKN).
- Convenience-store chains are also a major factor as C-stores such as Circle K (ANCUF), 7-11, Pantry (PTRY), BP Connect (BP), On the Run (XOM), Speedway America (MPC), Kwik Shop (KR), and Qwiktrip continue to innovate and show some positive growth trends.
- What to watch: Analysis from Edward D. Jones suggests consumers tend to stay with their routines. The read is that companies in the breakfast business need to compete for market share within their segment - instead of trying to change consumer behavior. Taco Bell is utilizing that strategy with its marketing message which paints McDonald's as old-fashioned.
Jun. 2, 2014, 11:34 AM
- Improved traffic at restaurants chains in April helped boost the Restaurant Performance Index monitored by the National Restaurant Association by 0.3% to 101.7.
- The Expectations Index, which measures the six-month outlook for operators, improved 0.2% to 102.2 to mark the highest level for the index in two years.
- 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
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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