In order to beef up its presence on college campuses, Dunkin'
Donuts, an operational arm of
Dunkin Brands Group, Inc. (
DNKN
)
, recently announced the opening of its outlets at 10 college
campuses across the Northeast, Mid-Atlantic and Southern United
States. The company has already opened outlets in seven of the ten
universities, while outlets at others are slated to open by October
15, 2012.
As a matter of fact, the move is also a part of the company's goal
to double its presence in the U.S. over the next 20 years. To shore
up this plan, Dunkin' also recently opened new outlets in several
other public locations - like airports, hotels, sports stadiums and
amusement parks.
The universities, in which Dunkin' is going to open outlets,
include major American universities - such as Emory University and
Montclair State University. However, this is not Dunkin's first
initiation to spread its footprint in campuses. The company has
previously been associated with renowned universities such as
Boston, New York and George Washington Universities, for years. The
success story of Dunkin' in these campuses depicts the company's
ability to provide various restaurant models meant to suit
different environments. The Dunkin's full retail shops such as
outlets designed for universities, bode well among students because
of the quality and innovative menu offerings at affordable prices.
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 formats including free-standing restaurants, end caps,
in-line sites, gas and convenience, travel plazas, university
outlets and others.
Dunkin' has been highly dynamic in its U.S. expansion spree. In the
last few weeks, Dunkin' inked deals with many franchisee groups to
expand its footprint in major U.S. markets. In accordance with the
deals, the company plans to open three restaurants in Illinois, two
in Ohio and 29 in Texas in the coming years.
However, Dunkin' should be wary of its competitors. Some of the top
peer companies - like
Yum! Brands, Inc. (
YUM
)
,
Darden Restaurants, Inc. (
DRI
)
and
Starbucks Corporation (
SBUX
)
- have enjoyed a strong presence in these major U.S. markets and
submarkets for years.
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.
Dunkin Brands is likely to release its third quarter 2012 earnings
on October 31, 2012. The Zacks Consensus Estimate for the third
quarter is pegged at 35 cents per share. We presently have a
long-term Neutral recommendation on Dunkin Brands. Also, it carries
a Zacks #3 Rank (a short-term Hold rating).
DUNKIN BRANDS (DNKN): Free Stock Analysis
Report
DARDEN RESTRNT (DRI): Free Stock Analysis
Report
STARBUCKS CORP (SBUX): Free Stock Analysis
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YUM! BRANDS INC (YUM): Free Stock Analysis
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