Saturday, April 21, 2012

Dunkin Brands Group Inc - DNKN

Recently I have noticed that every Dunkin' Donuts is always packed. Many, many cars are in each parking lot. The Drive-thru is packed around the clock. Anytime of day! In the city, the suburbs, near college campuses, on the bus, train station, and even in the airport it's dunkin', dunkin', DUNKIN'!

So I decided to check out their current stock valuation and it seems pretty consistent with their earning (@ $31.05, as of 4/20/12) Dunkin Brands Group, Inc., stock ticker DNKN currently pays 15 cent quarterly dividend, which is a 1.93% dividend yield. Since going public on the NASDAQ on July 27th, 2011 DNKN has increased in value.

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. DNKN franchises restaurants under its Dunkin’ Donuts and Baskin-Robbins brands. It has over 16,000 points of distribution in 57 countries. Dunkin’ Donuts operates primarily in the breakfast daypart within the quick service restaurant segment. Dunkin’ Donuts holds servings in each of the quick restaurant segment subcategories of Hot regular coffee, Iced coffee, Donuts, Bagels, Muffins, Total coffee and Breakfast sandwiches.

Baskin-Robbins offers servings of hard serve ice cream. It operates in four segments:
Dunkin’ Donuts U.S.
Dunkin’ Donuts International
Baskin-Robbins International
Baskin-Robbins U.S.

During the year ended December 25, 2010, Dunkin’ Donuts segments generated 76% of its total segment revenues. DNKN is not a new company at all. They have been in existence since 1961. Since going public they have undergone many changes since being partially owned by a group of private equity groups. Bain Capital has owned a chunk of the "DUNK" since 2006.

Dunkin' Brands has added 4,400 net restaurants in the past 6 years. They plan on doubling their footprint in the United States over the upcoming 20 years. In 2011, DNKN added 240 restaurants in the United States, which accounts for more than 70% of revenue stream.

I believe that it is now time to bank your hard earned dollar$ into DNKN. I like the opportunity for expansion with this business. Expansion into more areas is being done carefully with overseas units. DNKN should be able to open many more stores across the country, as well penetrate other global territories.

DNKN is the COMMON MAN'S coffee alternative to the highly priced Starbucks. That is not a diss to SBUX, which is a great company also. Click here to read my analysis of SBUX. DNKN and SBUX are on different levels. Both make a moat of cash, yet you should perform your own due diligence if you intend on investing in both stocks. Pick one and reap the benefits! The coffee business will be around when your 60, 70, and 80 and why not look back and say, "I have been invested in DNKN since 2012!"

In my humble opinion DNKN sells better bakery goods! They don't have fancy lounges like SBUX, which suits me just fine. I want my coffee hot, quick, and I'm GONE! Their Coffee Coolattas are addictive, but not as addicting as their current 1.93% dividend yield, which will grow for years to come.

Please visit Dunkin' Brands' website here, and also their Corporate History page, here. Are you in need of DNKN's Investor Relations information? Click here. Enjoy the Dunkin' related videos below and seriously consider this stock for your own personal Roth IRA stock portfolio.

CNBC interview with CEO Nigel Travis for his 1st interview since Dunkin went public.

Dunkin Brands Group, Inc.: Using Social Media

Time to make the donuts with (the late) Michael Vale as "Fred the Baker"

Baskin Robbins 31 cent Scoop Night in Canada!

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