Dunkin Brands Group (NASDAQ:DNKN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Thursday. The firm presently has a $74.00 price objective on the restaurant operator’s stock. Zacks Investment Research‘s price objective points to a potential upside of 12.07% from the stock’s previous close.
According to Zacks, “Dunkin’ Brands’ licensing deals with KeurigGreenMountain and J.M. Smucker to sell Dunkin' K-Cup pods to retailers as well as online customers continue to expand Dunkin’s brand reach. The topline should gain from menu innovation and unit expansion plans. Also, the company’s franchised business model, sales initiatives like product launches, loyalty program along with enhanced digital offerings also bode well. Increased focus on establishing itself as a beverage leader should aid sales, going forward. Estimates are stable ahead of its third-quarter earnings release. The company’s shares also outperformed its industry in the last year. Yet, intense competition, soft consumer spending environment and a shift in ice cream consumption in the United States raise concerns. Challenging comps growth in international markets at both its divisions is a potent headwind too.”
Several other brokerages also recently issued reports on DNKN. Maxim Group reissued a “buy” rating and set a $64.00 price objective on shares of Dunkin Brands Group in a research report on Tuesday, October 17th. Jefferies Group raised shares of Dunkin Brands Group from an “underperform” rating to a “hold” rating and increased their price objective for the stock from $48.00 to $56.00 in a research report on Saturday, December 30th. Robert W. Baird set a $66.00 price objective on shares of Dunkin Brands Group and gave the stock a “buy” rating in a research report on Monday, October 30th. Wedbush reissued a “hold” rating and set a $56.00 price objective on shares of Dunkin Brands Group in a research report on Friday, October 27th. Finally, JMP Securities increased their price objective on shares of Dunkin Brands Group from $59.00 to $62.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 6th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and ten have given a buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $60.47.
Dunkin Brands Group (NASDAQ:DNKN) last posted its earnings results on Thursday, October 26th. The restaurant operator reported $0.61 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.63 by ($0.02). The firm had revenue of $224.20 million during the quarter, compared to analyst estimates of $214.60 million. Dunkin Brands Group had a negative return on equity of 140.12% and a net margin of 24.91%. The company’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter last year, the business posted $0.60 earnings per share. research analysts forecast that Dunkin Brands Group will post 2.42 earnings per share for the current fiscal year.
Dunkin Brands Group declared that its board has authorized a share repurchase plan on Thursday, October 26th that allows the company to repurchase $650.00 million in shares. This repurchase authorization allows the restaurant operator to reacquire shares of its stock through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.
A number of institutional investors have recently added to or reduced their stakes in DNKN. IHT Wealth Management LLC bought a new position in Dunkin Brands Group in the second quarter valued at $104,000. FNY Partners Fund LP grew its position in Dunkin Brands Group by 13,233.3% in the second quarter. FNY Partners Fund LP now owns 2,000 shares of the restaurant operator’s stock valued at $110,000 after purchasing an additional 1,985 shares in the last quarter. Advisors Asset Management Inc. grew its position in Dunkin Brands Group by 12.1% in the second quarter. Advisors Asset Management Inc. now owns 3,114 shares of the restaurant operator’s stock valued at $172,000 after purchasing an additional 336 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank grew its position in Dunkin Brands Group by 8.5% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,315 shares of the restaurant operator’s stock valued at $183,000 after purchasing an additional 259 shares in the last quarter. Finally, Commerzbank Aktiengesellschaft FI bought a new position in Dunkin Brands Group in the second quarter valued at $209,000. 90.66% of the stock is owned by institutional investors and hedge funds.
Dunkin Brands Group Company Profile
Dunkin’ Brands Group, Inc is a franchisor of quick service restaurants (QSRs) serving hot and cold coffee and baked goods, as well as hard serve ice cream. The Company franchises restaurants under its Dunkin’ Donuts and Baskin-Robbins brands. The Company operates through four segments: Dunkin’ Donuts-U.S., Dunkin’ Donuts International, Baskin-Robbins International and Baskin-Robbins-U.S.
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