Report
R.J. Hottovy
EUR 100.00 For Business Accounts Only

Dunkin's Espresso Rollout Creates Short-Term Disruption, but Expect Top-Line Acceleration in 2019

On the heels of recent menu and operational improvements, narrow-moat Dunkin's fourth-quarter results were a disappointment as Dunkin U.S. comps slid to flat growth from the 1.3% third-quarter increase. We buy management's explanation that the fourth-quarter weakness was not the result of competition but instead a deliberate decision to pull back on marketing to minimize operational complexity while installing espresso machines at 9,000 locations. We see several benefits of the espresso platform...
Underlying
Dunkin' Brands Group Inc.

Dunkin' Brands Group is a franchisor of quick service restaurants serving hot and cold coffee and baked goods, as well as ice cream. Through its Dunkin' Donuts brand, the company franchises restaurants featuring coffee, donuts, bagels, breakfast sandwiches, and related products. The company licenses Dunkin' Donuts brand products sold in certain retail outlets such as retail packaged coffee, Dunkin' K-Cup? pods, and ready-to-drink bottled iced coffee. Through its Baskin-Robbins brand, the company franchises restaurants featuring ice cream, frozen beverages, and related products. The company distributes Baskin-Robbins ice cream products to certain markets for sale in Baskin-Robbins restaurants and certain retail outlets.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
R.J. Hottovy

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