Dunkin' Brands (NASDAQ:DNKN)

Now paying dividends

They are expanding, but I dont think they have what it will take to stomp on the Starbucks' ground.

Expansion growth, product growth and great coffee!

Who doesn't like Dunkin?

Growing store count and not many stores in the west. Like how small the shops are and that people usually just come in and grab and go. Keeps costs of buildout in stores lower.

Dunkin Donuts has no public stores in California. This is incredible. It’s just starting it’s west expansion, with plans to open over 300 new stores this year. DNKN K-Kups just saw a 30% increase in sales comps. They also own Baskin Robbins which I love. Nigel Travis, the CEO since 2009, also announced a dividend increase of 27%, so it now yields 2.1%. At only 3.9 billion (Starbucks is 42 billion, which I also own), PEG 1.55, and a brand everyone knows, I’m ready to start 1.1% position. I also want to tell my son he owns shares of Baskin Robbins when we start going there, so I trimmed 20% of his NFLX position in his ESA and bought DNKN with it so he can ride that re-invested dividend for 16 years.

Loyalty program via mobile apps, etc. Companies trending towards multiple pay options (DPZ and their revamped online system, Amazon vs. brick and mortar stores, etc.) seem to have done well. Decent dividend.

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.

Will keep as a long-term holding and see what happens.

DOHNUTS!

2% dividend

guessing

DNKN offers quality at a modest price, relative to SBUX. It is growing at an attractive rate, and has tremendous market penetration in New England. Applying Peter Lynch's theory that you buy what you know and where you shop (for lack of a better term), it's a VERY LONG TERM play for my portfolio. Growth and dividend, combined, will make for a very attractive return for value investors and those who stay invested in good companies.

Who doesn't love Dunkin

Simply put, I like the opportunity for expansion with this business. The company should be able to open many more stores across the country, as well penetrate other global territories.

some dreamer thinks this will rocket like SBUX
(Hi Scott) maybe or not

DnKn is the 'real people's ' coffee alternative to high priced ( over priced ) Starbucks. Better bakery goods too! Expansion into more areas being done carefully as well as overseas units. Don't have fancy lounges but most people don't need/want that anyway!

Now that people outside New England are getting familiar with this chain the stock will enjoy a nice, long uptrend. Look out, SBUX!

Recent IPO. I love their coffee!