DNKN

Dunkin' Brands Group, Inc.

Consumer


Presented:03/02/2018
Price:$59.32
Cap:$5.45B
Current Price:$106.48
Cap:$8.78B

Presented

Date03/02/2018
Price$59.32
Market Cap$5.45B
Ent Value$7.88B
P/E Ratio15.57x
Book Value$0.09
Div Yield2.17%
Shares O/S91.80M
Ave Daily Vol1,083,664
Short Int6.56%

Current

Price$106.48
Market Cap$8.78B
Dunkin' Brands Group, Inc. operates as a franchisor of quick service restaurants, which engages in the service of hot and cold coffee, baked goods, and ice cream. It operates through the following segments: Dunkin' Donuts U.S., Dunkin' Donuts International, Baskin-Robbins International, and Baskin-Robbins U.S. The company was founded on November 22, 2005 and is headquartered in Canton, MA.

Publicly traded companies mentioned herein: Domino’s Pizza Inc (DPZ), Dunkin’ Brands Group Inc (DNKN), McDonald’s Corp (MCD), Restaurant Brands International (QSR), Sonic Corp (SONC), Starbucks Corp (SBUX), The Wendy’s Co (WEN), YUM! Brands Inc (YUM)

Highlights

The presenter is short shares of Dunkin’ Brands (DNKN) due to increased competition, slowing same-store sales growth, and delays/ risks to achieving expansion goals. He believes most of DNKN’s strengths (100% franchised status with pure cash flows and immunity to bottom line pressures such as commodities and rent) are already baked into the current price and that DNKN is now at risk of entering a “vicious” down-cycle. DNKN currently trades at 23x P/E and 15-16x EBITDA, and the presenter sees shares declining to 15-16x P/E and 13x EBITDA for a 30% drop.

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Idea Discussion

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