Dunkin' Widens Global Exposure - Analyst Blog


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In a bid to boost business, several U.S.-based restaurateurs are focusing on unit expansion. Quick service restaurant (QSR) chain Dunkin' Brands Group, Inc. 's ( DNKN ) 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 Turkey.

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. ( FRGI ), The Cheesecake Factory Inc. ( CAKE ) and Cracker Barrel Old Country Store, Inc. ( CBRL ). While Fiesta Restaurant sports a Zacks Rank #1 (Strong Buy), The Cheesecake Factory and Cracker Barrel have a Zacks Rank #2 (Buy).

CHEESECAKE FACT (CAKE): Free Stock Analysis Report

CRACKER BARREL (CBRL): Free Stock Analysis Report

DUNKIN BRANDS (DNKN): Free Stock Analysis Report

FIESTA RESTRNT (FRGI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
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