In a bid to boost business, several U.S.-based restaurateurs
are focusing on unit expansion. Quick service restaurant (QSR)
Dunkin' Brands Group, Inc.
) is no exception, and its unit expansion remains unruffled amid
an uncertain economy. Dunkin' Brands operates through two leading
brands - Dunkin' Donuts and Baskin-Robbins.
With the resurgence of consumer confidence, the company has
accelerated its unit openings and in 2013 unveiled a total of 790
Dunkin' Donuts as well as Baskin-Robbins outlets worldwide.
Dunkin' Brands has developed 371 Dunkin' Donuts units in the
domestic market. Moreover, it has entered into 100 multi-store
development deals with franchisees to expand in the flourishing
California market. The company intends to open 1,000 Dunkin'
Donuts units in California in the coming years.
Apart from unit expansion, the company is also concentrating
on its remodeling initiative started in 2013. Since the roll out
of this program, nearly 521 Dunkin' Donuts units in the U.S. have
undergone a complete makeover.
Management appears to be gearing up for international
expansion as well, especially in Europe. In 2013, Dunkin' Brands
unveiled 138 Dunkin' Donuts outlets internationally with its
first unit in the United Kingdom. Moreover, the company has inked
five franchise deals to expand further in Germany.
In late 2013, the restaurateur forged a franchise deal with
Fast Gourmet Group to open 100 Dunkin' Donuts units throughout
Eastern China, the first of which is slated for a 2014 opening.
Additionally, the company is looking for new franchisees for
developing Dunkin' Donuts units in Brazil, Scandinavia and
Dunkin' Brands has also launched Baskin-Robbins outlets
throughout the four U.S. markets where it operates. Moreover, the
company has unveiled 277 Baskin-Robbins units at several
international locations and plans to open 375 outlets under the
brand over the next 10 years.
Dunkin' Brands expects to develop a total of 685-800 Dunkin'
Donut as well as Baskin-Robbins outlets globally in 2014. Among
these, 300-400 units will be at international locations. The
company intends to open nearly 15,000 Dunkin' Donuts restaurants
domestically over the long-term.
Dunkin' Donuts has a Zacks Rank #3 (Hold). Investors
interested in the restaurant industry may consider stocks like
Fiesta Restaurant Group, Inc.
The Cheesecake Factory Inc.
Cracker Barrel Old Country Store, Inc.
). While Fiesta Restaurant sports a Zacks Rank #1 (Strong Buy),
The Cheesecake Factory and Cracker Barrel have a Zacks Rank #2
CHEESECAKE FACT (CAKE): Free Stock Analysis
CRACKER BARREL (CBRL): Free Stock Analysis
DUNKIN BRANDS (DNKN): Free Stock Analysis
FIESTA RESTRNT (FRGI): Free Stock Analysis
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