Zacks Investment Research downgraded shares of Dunkin Brands Group (NASDAQ:DNKN) from a buy rating to a hold rating in a report published on Tuesday, Zacks.com reports. The firm currently has $84.00 price objective on the restaurant operator’s stock.
According to Zacks, “Dunkin’ Brands performed in line with the industry year to date. The company’s franchised business model, various sales-building initiatives like product launches, aggressive expansion and ongoing loyalty program along with enhanced digital offerings bode well. Moreover, earnings estimates over the past 60 days have been witnessing an upward trend. With demand for coffee expected to grow going forward, Dunkin’ Brands is continuously adding new coffee beverages to the menu. However, it is witnessing dismal sales at Baskin-Robbins International, which adds to the concern. Intense competition from larger fast-casual companies, a soft consumer spending environment, challenging international markets and a shift in ice cream consumption remain potent headwinds. Also, high costs of operations raise a concern.”
Several other research firms also recently commented on DNKN. Goldman Sachs Group initiated coverage on shares of Dunkin Brands Group in a research note on Monday, July 29th. They issued a neutral rating and a $85.00 price target on the stock. Morgan Stanley upped their price target on shares of Dunkin Brands Group from $74.00 to $77.00 and gave the company an equal weight rating in a research note on Friday, August 2nd. Credit Suisse Group initiated coverage on shares of Dunkin Brands Group in a research note on Tuesday, June 25th. They issued an underperform rating and a $70.00 price target on the stock. Wells Fargo & Co upped their price target on shares of Dunkin Brands Group from $68.00 to $78.00 and gave the company a market perform rating in a research note on Monday, July 15th. Finally, Argus upgraded shares of Dunkin Brands Group from a hold rating to a buy rating and set a $92.00 price objective on the stock in a research note on Wednesday, August 7th. Two analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and six have assigned a buy rating to the company. The company has an average rating of Hold and an average target price of $78.78.
Dunkin Brands Group (NASDAQ:DNKN) last released its quarterly earnings results on Thursday, August 1st. The restaurant operator reported $0.86 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.82 by $0.04. Dunkin Brands Group had a net margin of 17.15% and a negative return on equity of 36.53%. The business had revenue of $359.30 million for the quarter, compared to the consensus estimate of $360.32 million. During the same period in the prior year, the company posted $0.77 earnings per share. Dunkin Brands Group’s revenue was up 2.5% compared to the same quarter last year. On average, equities research analysts anticipate that Dunkin Brands Group will post 3.05 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 12th. Shareholders of record on Tuesday, September 3rd were paid a dividend of $0.375 per share. The ex-dividend date of this dividend was Friday, August 30th. This represents a $1.50 dividend on an annualized basis and a yield of 1.84%. Dunkin Brands Group’s payout ratio is 51.72%.
In other news, Director Nigel Travis sold 25,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 15th. The shares were sold at an average price of $82.53, for a total value of $2,063,250.00. Following the sale, the director now directly owns 172,624 shares in the company, valued at approximately $14,246,658.72. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP John Varughese sold 4,000 shares of the firm’s stock in a transaction that occurred on Friday, August 16th. The shares were sold at an average price of $83.43, for a total transaction of $333,720.00. Following the completion of the sale, the senior vice president now owns 5,425 shares in the company, valued at $452,607.75. The disclosure for this sale can be found here. Insiders have sold 124,077 shares of company stock worth $10,123,627 over the last quarter. Corporate insiders own 1.70% of the company’s stock.
Institutional investors and hedge funds have recently bought and sold shares of the company. Semmax Financial Advisors Inc. boosted its stake in shares of Dunkin Brands Group by 525.9% in the 1st quarter. Semmax Financial Advisors Inc. now owns 363 shares of the restaurant operator’s stock valued at $27,000 after purchasing an additional 305 shares in the last quarter. Private Capital Group LLC boosted its stake in shares of Dunkin Brands Group by 29.7% in the 2nd quarter. Private Capital Group LLC now owns 529 shares of the restaurant operator’s stock valued at $37,000 after purchasing an additional 121 shares in the last quarter. Penserra Capital Management LLC acquired a new stake in shares of Dunkin Brands Group in the 1st quarter valued at approximately $38,000. Bremer Bank National Association acquired a new stake in shares of Dunkin Brands Group in the 1st quarter valued at approximately $41,000. Finally, Oakworth Capital Inc. acquired a new stake in shares of Dunkin Brands Group in the 2nd quarter valued at approximately $42,000. Institutional investors own 87.75% of the company’s stock.
Dunkin Brands Group Company Profile
Dunkin' Brands Group, Inc, together with its subsidiaries, develops, franchises, and licenses quick service restaurants worldwide. The company operates through five segments: Dunkin' U.S., Dunkin' International, Baskin-Robbins International, Baskin-Robbins U.S., and U.S. Advertising Funds.
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