Dunkin' Donuts on an Expansion Mode - Analyst Blog

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Dunkin' Donuts, a well known brand of Dunkin' Brands Group, Inc. ( DNKN ), recently unveiled two outlets on the Kansas Turnpike, a 236-mile-long toll road located in the state of Kansas. The restaurateur launched these restaurants in association with its franchise partner, Rosenfield Restaurants.   

These restaurants especially target customers who are travelling by road and need a place to eat and get refreshed. The strategic positioning of the two restaurants at the Topeka Service Plaza, Interstate 70 and Matfield Green Service Plaza, Interstate 35 coupled with its contemporary ambience will likely drive sales, going ahead. Another Dunkin' Donuts restaurant is slated to be launched at Towanda Service Plaza on Kansas Turnpike next month.

In order to be competitive and innovative, Dunkin' Donuts is greatly focusing on seizing growth opportunities and is catering to consumer needs of individual markets. To shore up this plan, the company is also expanding into several non-traditional public locations - like travel plazas, mass transit stations, college campus, sports stadiums, supermarkets, amusement parks and military bases. 

Currently, the company boasts as many as 500 outlets in various non-traditional places. Dunkin' Brands' full retail shops such as outlets designed for end caps, in-line sites, gas and convenience, service plazas, bode well among customers because of the quality and innovative menu offerings at affordable prices.

The quick-service restaurant chain has been highly active on its domestic expansion plan and intends to double its portfolio in the U.S. over the next 20 years. Further, in order to beef up its revenues, the Zacks Rank #3 (Hold) company has undertaken a series of initiatives for brand revitalization, menu innovation, improved food presentation and better services.

Others players in the same industry, which look attractive at current levels include AFC Enterprises Inc. ( AFCE ), Domino's Pizza, Inc. ( DPZ ) and CEC Entertainment Inc. ( CEC ). All these stocks carry a Zacks Rank #2 (Buy).



AFC ENTERPRISES (AFCE): Free Stock Analysis Report

CEC ENTERTANMNT (CEC): Free Stock Analysis Report

DUNKIN BRANDS (DNKN): Free Stock Analysis Report

DOMINOS PIZZA (DPZ): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AFCE , CEC , DNKN , DPZ

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