Dunkin' Donuts, an operational arm of
Dunkin Brands Group, Inc. (
, recently announced that it has entered into a contract with a
franchise group to open two restaurants in Ohio. The move is part
of the company's goal to double its presence in the U.S. over the
next 20 years.
The restaurants are planned to be opened in Cincinnati, with one
restaurant slated to open in 2014 and the other in 2015. Cincinnati
is the third largest city in Ohio, and Dunkin' already has a
The promising restaurant industry in Ohio acts as a driving
force to the U.S. economy. Renowned peer companies of Dunkin Brands
Darden Restaurants, Inc. (
Panera Bread co. (
have been active in the state for years. In 2012, total revenue
from the restaurant sector in Ohio is projected to be around $16.6
Dunkin' Donuts has inked a deal with an existing franchisee
group - Rupal Kadakia, Kamlesh Shakrani and Hiren Pandhi - for new
restaurant openings. The franchisee group will manage the
day-to-day operations of each restaurant. The franchisees have
handled Dunkin' Donuts restaurants for more than 13 years.
Management believes that tremendous franchise opportunities still
exist in the Ohio market, particularly in the cities of Columbus,
Dayton, Toledo and Lima.
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, on-
university campus and others.
Dunkin' continues to expand throughout the U.S. Last week,
Dunkin' Donuts also joined hands with two franchise groups to open
three units in Illinois. Earlier this month, the company inked
deals with four franchises - Daily Grind LLC, MM Donuts, LLC, Yes
Partners, LLC and Medallion Donuts, LLC - to open new restaurants
Dunkin' Donuts is the market leader in the coffee, donut, bagel
and muffin categories. The company operates more than 10,000
restaurants worldwide, including more than 7,000 restaurants in 36
states as well as the District of Columbia, and in more than 3,000
international locations in 33 countries.
We presently have a long-term Neutral recommendation on Dunkin
Brands Group. Also, the company carries a Zacks #3 Rank (a
short-term Hold rating).
DUNKIN BRANDS (DNKN): Free Stock Analysis
DARDEN RESTRNT (DRI): Free Stock Analysis
PANERA BREAD CO (PNRA): Free Stock Analysis
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