Dunkin' Brands Group (DNKN +1.2%) trades higher after Argus Research upgrades to a Buy rating from Hold.
"We expect higher comps and accelerated store openings at Dunkin' Donuts U.S. to be driven by a range of factors, including drive-thru lines dedicated to mobile orders, brighter interior designs, espresso machines, digital order boards, and a tap system serving coffee, iced tea and cold brew," reads the analyst note.
Argus expects the initiatives will enable the restaurant company to deliver 2% to 3% comparable sales growth and 5% revenue growth, as well as high single-digit earnings growth in the near term.
"Over the long term, we remain optimistic about Dunkin's strong franchise program, established brands, and opportunities to expand into new sales channels and geographic regions," notes the firm.
The Seeking Alpha Quant Rating on DNKN is also flashing Very Bullish.
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