Dunkin' Brands Group, Inc.
) subsidiary Dunkin' Donuts is hiring efficient and experienced
franchise partners to open new locations in different parts of
North Carolina including Charlotte, Greensboro, Wilmington
Raleigh-Durham, Wilmington and Winston-Salem. The company will be
expanding in the state by forming franchise agreements.
In order to attract new franchisees, Dunkin' has decided to
provide several incentives such as lower royalty fees for the
next three years and an additional $10,000 for marketing
expenses. Additionally, Dunkin' will be assisting its partners to
properly manage its restaurant operations. Apart from this,
franchisees will be able to leverage the company's multi-million
dollar advertising fund.
Focus on expansion being very important with Dunkin',
management finds the fast-growing markets in North Carolina to be
particularly attractive. Currently, the company operates 44
locations under the Dunkin' Donuts brand in the state.
The restaurant industry in North Carolina acts as a driving
force for the U.S. economy. Several other restaurant chains,
which are active in the state for years, include
Krispy Kreme Doughnuts, Inc.
Burger King Worldwide, Inc.
). As per the National Restaurant Association, North Carolina's
emerging restaurant industry will generate total revenue of
nearly $15.4 billion in 2013.
In the last month, this Zacks Rank #3 (Hold) company partnered
with Little General to launch three new Dunkin' locations in West
Virginia over the next five years. The first among these Dunkin'
units is slated to open for business in 2014.
These moves are consistent with the company's objective of
doubling its store count in the U.S. with nearly 7,000
restaurants over the next 20 years. In 2013, Dunkin' is expected
to launch 300-360 Dunkin' Donuts units in the U.S., resulting in
an annual new unit growth rate of 4.5% - 5%.
Dunkin' completely relies on a franchised business model. We
believe that franchising provides a strong engine for earnings
per share growth and ROE expansion, as the company gets to reduce
its capital requirements.
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