Report
R.J. Hottovy
EUR 101.80 For Business Accounts Only

Top-Line Trends and Revised Store Opening Plan Raise Questions, but Dunkin's Long-Term Story Intact

While narrow-moat Dunkin's second-quarter update raised questions about competition and unit development, we are convinced the firm's transformative plan remains on track and slowing near-term unit growth is prudent while developing a more technology-leveraged and drive-thru-focused restaurant layout. U.S. comps increased 0.8% (3% increase in average ticket offset by guest count declines), and while McDonald's and Starbucks likely played a role, many of Dunkin's strategic efforts--streamlined me...
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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