Canton, MA based leading quick service restaurant chain,
Dunkin' Brands Group, Inc.
) subsidiary Dunkin' Donuts is all set to launch its new
restaurants in Northern Utah. In this regard, Dunkin' has entered
into a multi-unit deal with its existing franchisee, Sizzling
Under the terms of the agreement, Sizzling Donuts will
introduce 7 new restaurants in Northern Utah over the next 7
years with the first unit slated to open for business in
Since Washington County in Utah remains relatively
under-penetrated, management is focused on expanding in the
region. As a result, they have not set any minimum limit on the
number of units and are going with both single and multi-unit
As per the National Restaurant Association, total revenues
from the restaurant sector in Utah are projected to be around
$3.5 billion in 2013. Various other restaurateurs including
The Cheesecake Factory Incorporated
) have been active in the city for years.
As a point of reference, this unit expansion is part of the
company's goal to double its portfolio in the U.S. over the next
20 years. Dunkin is focused on a strategy to seize growth
opportunities by catering to the consumer needs of individual
markets. In 2013, Dunkin will introduce 300-360 Dunkin Donuts
units in the U.S., resulting in an annual new unit growth rate of
4.5% - 5%.
In 2012, Dunkin signed an agreement with Sizzling Donuts, LLC,
an operational arm of Sizzling Platter, LLC, to open 36 new
restaurants across Salt Lake City, El Paso and Denver. in the
coming years. As of now, Sizzling Donuts has started operating 5
Dunkin' units in El Paso.
Dunkin' Brands currently retains a Zacks Rank #2 (Buy).
Another restaurant chain worth considering is
Red Robin Gourmet Burgers Inc.
) with a Zacks Rank #1 (Strong Buy).
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