Oct. 18, 2013, 3:18 PM
- Restaurant analysts think fast-food chains might be going too far with limited time offerings as consumer interest shows signs of sagging.
- Though particular items such as the Starbucks Pumpkin Latte, Wendy's Pretzel Bacon Cheeseburger, and the timeless McRibs offering from McDonald's are profit drivers, the majority of offerings aren't working.
- Not even the high-profile chicken wing test by McDonald's is moving the meter as consumers find the high prices don't offset the novelty, reports Burger Business.
- Related stocks: DNKN, JACK, SONC, WEN, BKW, KKD, MCD.
Oct. 18, 2013, 8:13 AM
- A major storm is brewing over the low wages paid to fast-food workers and the cost to U.S. taxpayers of the group's reliance on public safety nets as it lives off the sub-$10 per hour wages.
- The National Employment Law Project estimates it costs the public close to $7B to sustain the families of fast-food workers through initiatives such as food stamps, the Children's Health Insurance Program and the Earned Income Tax Credit.
- It's a cost that at some point the American public may demand be shared by the major players in the restaurant sector.
- Fast-food chains in focus: McDonald's (MCD), Burger King (BKW), Wendy's (WEN), Taco Bell (YUM), Dunkin' Donuts (DNKN), Subway.
Oct. 15, 2013, 8:09 AM
- It's very early in the earnings season, but restaurant operators are 0 for 5 in meeting the Q3 estimates of analysts, observes Hedgeye.
- Domino's Pizza which is considered one of the more resilient chains to consumer spending swings was the latest to swing and miss.
- The sector has been tapped as one of the potential casualties from the government shutdown with family dining operators expected to take the hardest hit.
- Earnings watch: CAKE, CBRL, CMG, DNKN, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SONC, WEN, BWLD, THI, BDL, BKW, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN
Oct. 14, 2013, 6:52 AM| Comment!
Sep. 16, 2013, 9:43 AM
- Dunkin' Brands (DNKN +0.7%) says it will add 17 locations in the western and central part of Texas as it continues its westward expansion for Dunkin' Donuts.
- The company will work with two different franchise groups for the new outlets.
- The game plan for Dunkin' Donuts in the West is to create networks of stores in specific markets to help support a distribution model.
Sep. 12, 2013, 3:19 PM
- Dunkin' Brands (DNKN +1.3%) will take another crack at the U.K. with Dunkin' Donuts outlets scheduled to start appearing over the next few years.
- This time around the chain will focus on much more than just dougnuts as it takes dead aim at Starbucks and Costa Coffee for morning market share.
- The company isn't betting the whole farm on the region, saying it will take a measure approach to expansion through franchise partners.
Aug. 30, 2013, 9:51 AM
- Dunkin' Brands (DNKN +0.2%) is under fire for an advertising campaign in Thailand that critics call offensive.
- The Human Rights Watch has called on the company to withdraw what it calls a "bizarre and racist" marketing campaign while the CEO for Dunkin' Donuts in Thailand says the criticism is overdone.
Aug. 29, 2013, 10:46 AM
- Fast food workers aren't likely to see a broad increase in their wages to $15 per hour, but the heightened calls for unionization and focus on benefits could be drag on the sector in the future.
- Economists say a raise in the minimum wage to $10.50 per hour would increase restaurant expenses by 2.7% which could be passed on with higher menu prices. The trick is in a promotional environment, and with more menus tied to value, the pass-through to consumers might not be smooth as academics forecast.
- On watch: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SONC, WEN, BKW, DENN,KKD, IRG, DIN.
Aug. 22, 2013, 10:24 AM
- The increasing presence of premium coffee brands in grocery stores hasn't had the devastating impact on long-time favorites.
- J.M. Smucker's (SJM -0.8%) coffee brands showed a 4% volume gain last quarter with both Folgers and packaged coffee from Dunkin' Donuts (DNKN -0.1%) contributing steadily.
- Bagged coffee market share: Folgers 15.6%, Maxwell House (KRFT) 10%, Green Mountain Coffee Roasters (GMCR) 4.3%, Starbucks (SBUX) 3.3%.
Aug. 13, 2013, 9:37 AM
- Retail sales beat expectations in July after backing out auto sales to show the strongest gain of the year.
- Restaurants (CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, CEC, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN) showed some strength during the month, rising 0.6% after an alarming 0.5% drop in June.
- Despite the largely positive reading on retail sales, the dominant event for retail this week will come from Bentonville, Arkansas when Wal-Mart (WMT -0.6%) reports Q2 earnings and offers up some hints about Q3.
Aug. 7, 2013, 2:44 PM
- Some retail analysts have an uneasy feeling that the selling pressure on retail-oriented stocks could extend to restaurants.
- The group has held up fairly well even as McDonald's continues to have a spotty sales year and blunt assessments from industry execs - including last week's revelation from Brinker International during a conference call (transcript) that fast casual dining is a "fairly lethargic" category.
- On watch: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN.
Jul. 30, 2013, 7:01 AM
- The 7-Eleven retail chain is about to enter a growth phase in the U.S., according to Seven & I Holdings CEO Toshifumi Suzuki.
- The company plans to make acquisitions and raise the quality of stores in an effort to mimic the success of the chain in parts of Europe.
- The aggressive push by 7-Eleven could affect the plans of Dunkin Brands' (DNKN) and The Pantry (PTRY) which are also in an expansion mode.
Jul. 26, 2013, 2:08 PMThe coffee trade is doing quite well today with shares of Starbucks (SBUX +7%), Dunkin' Brands (DNKN +6%), and Green Mountain Coffee Roasters (GMCR +2.3%) all lively. Though at one time, Starbucks was pegged as a GMCR-killer (via Verismo) and thought to be a thorn to DNKN's expansion plans, the prevailing thought is that the coffee market might be big enough for quite a few players. The very last thing people want to give up is a cup of coffee," notes Lazard Capital. | Comment!
Jul. 26, 2013, 9:43 AMDunkin' Brands (DNKN +1.8%) is on its way to sprinkling donut stores across California with 46 new stores slated to open in 2015. Eventually, the company plans to have close to a thousand stores in the state, alhough skeptics still wonder if the West Coast will be as amenable to the Dunkin' Donuts franchise as the East Coast has been. | Comment!
Jul. 25, 2013, 8:51 AM
Jul. 25, 2013, 7:18 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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