Dunkin' Donuts, a well known brand of
Dunkin' Brands Group, Inc. (
, recently signed a multi-store development agreement with
franchisee group, Star Restaurant Group, for opening new nine
restaurants in Birmingham, Alabama. One restaurant will debut in
2013 and rest will come up by 2017.
As per the agreement, both the parties will join hands to manage
and control the company's daily operations in each restaurant. Star
Restaurant Group possesses the required experience as it already
handles multi-unit, gas and convenience operations in two states,
including quick-service restaurant components.
Dunkin' Donuts is focused on its strategy to seize growth
opportunities and cater to consumer needs of individual markets.
Thus, the company continues to expand through development of single
and multi-unit opportunities. In order to be competitive and
innovative, Dunkin' Donuts offers services through various types of
real estate format concepts including free-standing restaurants,
end caps, in-line sites, gas and convenience, travel plazas,
universities and others. As a matter of fact, the company has
franchisee opportunities available in other cities of Alabama too
like Huntsville and Montgomery.
Management expects the new franchisees to help establish strong
customer relationship in the Birmingham area through efficient
management and restaurant control.
Dunkin' Donuts is the favorite all-day, everyday joint for
coffee and baked goods in US. It is a market leader in the hot
flavored coffee, regular/decaf coffee, iced coffee, donut, bagel
and muffin categories. As of now, Dunkin' Donuts has more than
10,000 restaurants worldwide, which includes more than 7,000
restaurants in 36 United States as well as the District of Columbia
and more than 3,000 international restaurants in 33 countries.
Canton, Massachusetts-based, Dunkin' Brands Group, together with
its subsidiaries, owns, operates, and franchises quick service
restaurants worldwide. It operates under two brands- Dunkin' Donuts
and Baskin-Robbins. As of December 31, 2011, Dunkin' Brands' had
nearly 100 percent franchised business model, which includes more
than 16,700 Dunkin' Donuts and Baskin-Robbins restaurants.
Dunkin' Brands Group recently reported first quarter 2012
earnings of 25 cents per share beating the Zacks Consensus Estimate
by 2 cents. The company expects earnings per share for 2012 in the
range of $1.21- $1.24, which represents a 29-32% year-over-year
Dunkin' Brands Group, which competes with the likes of
Starbucks Corporation (
Yum! Brands, Inc. (
, retains a Zacks #3 Rank which translates into a short-term Hold
rating. We are maintaining our long-term Neutral recommendation on
DUNKIN BRANDS (DNKN): Free Stock Analysis
STARBUCKS CORP (SBUX): Free Stock Analysis
YUM! BRANDS INC (YUM): Free Stock Analysis
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