Dunkin' Donuts, an operational arm of
Dunkin Brands Group, Inc. (
, recently announced that it has inked multi-unit store development
agreements with several franchise groups. The deal is in accordance
with Dunkin' Donuts' strategy of opening 29 new units in Houston
and Waco in Texas in the coming years.
DUNKIN BRANDS (DNKN): Free Stock Analysis
BRINKER INTL (EAT): Free Stock Analysis Report
YUM! BRANDS INC (YUM): Free Stock Analysis
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Dunkin' Donuts remains focused on its strategy to seize growth
opportunities and cater to consumer needs in individual markets.
The company continues to expand through development of single and
The company has 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. The new
restaurant development is part of the company's goal to double its
presence in the U.S. over the next 20 years.
The promising restaurant industry in Texas acts a major driving
force to the U.S. economy. Renowned peer companies of Dunkin Brands
Yum! Brands, Inc. (
Brinker International Inc. (
have been serving the state of Texas for years. In 2012, total
revenue from the restaurant sector in Texas is projected to be
around $38.4 billion.
The emerging dining industry in major cities like Houston, Waco,
San Antonio, Dallas and Austin, Texas caught the attention of
Dunkin' Donuts. In the previous quarter the company signed a
limited partnership agreement with Jerry Jones Family and Troy
Aikman to open around 50 new Dunkin' Donuts restaurants across
Dallas/Fort Worth region over the next five years.
In addition to this, the company also has 25 units in its
development pipeline, to be opened in Houston and San Antonio in
the coming years. Thus, the company has over 100 restaurants in its
U.S. development pipeline, with Texas grabbing the biggest share.
Dunkin' Donuts is the market leader in the various 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
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.