Dunkin' Donuts, an operational arm of
Dunkin Brands Group, Inc.
), recently announced that it has entered into contracts with two
franchise groups to expand in Illinois.
As per the agreement, the company will open three new
restaurants in the region. This particular move is a part of the
company's goal to double its presence in the U.S. over the next 20
Illinois is the fifth most populated state in the United States and
is a major transportation hub. The promising restaurant industry in
Illinois acts as a major driving force to the U.S. economy. In
2012, total revenue from the restaurant sector in Illinois is
projected to be around $20.7 billion.
Dunkin' Donuts has inked a deal with an existing franchise, Aziz
Nathani, to open two new restaurants by 2014. One unit will be
unveiled in LaSalle in 2013 and the other one will be opened in
Ottawa in 2014.
The company has signed the second deal with a new franchise,
Sujal Patel, to open a restaurant in Pontiac. This unit is
scheduled to be unveiled in 2013. Management believes that
tremendous franchise opportunities still exist in the Illinois
market, particularly in the cities of Decatur and Champaign.
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Dunkin Brands will also face stiff competition from peers like
Yum! Brands, Inc.
), which have been enjoying a presence in the state of Illinois for
Dunkin' Donuts remains focused on its strategy to seize growth
opportunities and cater to consumers needs in individual markets.
The company continues to expand through the 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.
Last week, the company also inked deals with four franchises -
Daily Grind LLC, MM Donuts, LLC, Yes Partners, LLC and Medallion
Donuts, LLC - to open four restaurants in 2013 and the rest by 2019
Dunkin' Donuts is the market leader in the coffee, donut, bagel and
muffin categories. As of now, Dunkin' Donuts operates more than
10,000 restaurants worldwide, including more than 7,000 restaurants
in 36 states as well as the District of Columbia in the U.S., and
in more than 3,000 international locations in 33 countries.
We presently have a long-term Neutral recommendation on Dunkin
Brands Group. However, the company carries a Zacks #2 Rank, which
translates into a short-term Buy rating.