Dunkin' Brands (NASDAQ:DNKN)

CAPS Rating: 2 out of 5


Player Avatar XMFHarleyQuinn (< 20) Submitted: 9/26/2012 1:59:33 PM : Underperform Start Price: $28.40 DNKN Score: -2.96

Though the company has great expansion plans and many exciting news announcements, there is an underlying and fundamental issue with its structure as an "Asset - Light" business. The company has almost $2B in debt, backed by an overinflated valuation of its Trade Name. Though this is a company that makes its money through franchise and licensing agreements, hence lending to the idea of an asset-light strategy, backing up a substantial amount of debt with an Intangible Asset (Trade Names, etc.) is a very risky move. I will be curious to see what happens in the next 2-3 years with all of the expansions, but I think that in the end the company will have to come up with a new strategy, which could create investor-averse conditions.

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Member Avatar OklaBoston (68.01) Submitted: 11/30/2012 1:49:56 PM
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I'm speculating that you live in an area with few, if any, Dunkin' outlets.

As a regular customer of the store 3 blocks from where I live I can assure you that the chain will have customer loyalty right up there with Starbucks. Possibly even higher because it's prices are lower and the stores less pretentious than Starbucks.

The only reason I can see for giving this a thumbs down is that it's such a newly public stock. Despite that it's definitely the greatest threat to SBUX niche domination around today.

Member Avatar trackjakeambrose (55.44) Submitted: 11/30/2012 3:35:09 PM
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the system is proven, each store will earn more than it cost. its not going to back fire for your reasons. the risk is the idiots running it from the top trying new stupid stuff. that costs and loses money thats the only risk

Member Avatar jonconnery (< 20) Submitted: 2/12/2013 6:14:19 PM
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Donuts are Donuts are Donuts ! Does anybody remember Krispy Kreme ? Dunkin is no different ... Nothing high tech about sugar on a greasy piece of fried dough .. It will go the same---- the only question being when !

Member Avatar mainelegal (87.53) Submitted: 6/7/2013 7:47:38 AM
Recs: 2

Anyone in New England knows that DD will be a staple for many years. The surprise has been that Starbucks has been successful as well. The Maine DOT has to license curb cuts for new development of commercial properties on state routes - they have a special traffic category for new Dunkin Donuts stores. The coffee is simply awesome.

However, I doubt I will ever order a chicken sandwich from DD.

Member Avatar sunitatrehan101 (< 20) Submitted: 7/22/2014 5:01:35 PM
Recs: 0

DD is quite popular in New England area but they should go international and tailor the menu just like McDonald and others have done in India and other countries- little local, little spicy and add other items for light lunch menu. Get our college campus students addicted by offering mexican, Indian and other quick, healthy and light menu to go so their toungues get a little thrill. McDonald, KFC and Domino Pizza has done that in Asian countries.

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