In a bid to expand its presence in Ohio.,
Dunkin' Brands Group Inc.
) subsidiary Dunkin Donuts and Gilligan Oil Company LLC. has
recently entered into a multi-unit store development contract.
Under the terms of the agreement, Dunkin will launch 13 new
restaurants in Dayton, Ohio. with the first unit slated to open
With these openings, Dunkin will be extending its coverage in
Toledo, Lima and other southeast regions of Ohio. The company has
chosen Ohio because of its promising growth opportunity. As per
the National Restaurant Association, total revenues from the
restaurant sector in Ohio are projected to be around $17.4
billion in 2013.
These moves are part of Dunkin's strategy to increase its
footprint in the U.S. over the next 20 years. Dunkin is also keen
on seizing growth opportunities by catering to the consumer needs
of individual markets through augmenting its restaurant
Dunkin recently posted fourth-quarter 2012 adjusted earnings
of 34 cents per share, beating the Zacks Consensus Estimate by a
cent and the year-ago quarter's earnings of 30 cents. During the
fourth quarter, Dunkin' Donuts U.S. revenues increased 3.4%
annually to $128.1 million on the back of a high royalty income,
rise in other revenues and company-owned restaurants' sales.
In 2013, Dunkin will introduce nearly 300-360 Dunkin' Donuts
units in the U.S., which will represent an annual new unit growth
rate of 4.5 - 5%. Currently, Dunkin expects that its annual
development rate will be 5% in the long term. Further, the
company intends to open nearly 15,000 restaurants under Dunkin'
Donuts brand in U.S. in the next 3-5 years.
Dunkin' Brands currently retains a Zacks Rank #2 (Buy). Other
restaurant chains which are active in Ohio for years include
Krispy Kreme Doughnuts, Inc.
Burger King Worldwide, Inc
Red Robin Gourmet Burgers Inc.
). Both Krispy Kreme and Burger King have a Zacks Rank #2 (Buy)
while Red Robin carriers a Zacks Rank #1 (Strong Buy).
BURGER KING WWD (BKW): Free Stock Analysis
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