DB:2DB

Stock Analysis Report

Executive Summary

Dunkin' Brands Group, Inc., together with its subsidiaries, develops, franchises, and licenses quick service restaurants worldwide.

Rewards

Trading at 5.4% below its fair value

Earnings are forecast to grow 6.53% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record



Snowflake Analysis

Second-rate dividend payer with questionable track record.


Similar Companies

Share Price & News

How has Dunkin' Brands Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2DB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

2DB

-3.5%

DE Hospitality

0.07%

DE Market


1 Year Return

n/a

2DB

-20.0%

DE Hospitality

14.8%

DE Market

Return vs Industry: Insufficient data to determine how 2DB performed against the German Hospitality industry.

Return vs Market: Insufficient data to determine how 2DB performed against the German Market.


Shareholder returns

2DBIndustryMarket
7 Day1.9%-3.5%0.07%
30 Day4.5%-5.1%1.4%
90 Day4.2%-12.4%6.1%
1 Yearn/a-14.8%-20.0%18.4%14.8%
3 Yearn/a-8.6%-20.8%17.4%7.0%
5 Yearn/a-11.0%-28.1%27.9%10.4%

Price Volatility Vs. Market

How volatile is Dunkin' Brands Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dunkin' Brands Group undervalued compared to its fair value and its price relative to the market?

4.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2DB (€70.62) is trading below our estimate of fair value (€74.64)

Significantly Below Fair Value: 2DB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2DB is poor value based on its PE Ratio (27.2x) compared to the Hospitality industry average (20.5x).

PE vs Market: 2DB is poor value based on its PE Ratio (27.2x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: 2DB is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: 2DB has negative assets, so we can't compare its PB Ratio to the DE Hospitality industry average.


Next Steps

Future Growth

How is Dunkin' Brands Group forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2DB's forecast earnings growth (6.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: 2DB's earnings (6.5% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: 2DB's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2DB's revenue (3.3% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: 2DB's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2DB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Dunkin' Brands Group performed over the past 5 years?

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2DB has high quality earnings.

Growing Profit Margin: 2DB's current net profit margins (17.5%) are lower than last year (23.6%).


Past Earnings Growth Analysis

Earnings Trend: 2DB's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: 2DB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2DB had negative earnings growth (-23.7%) over the past year, making it difficult to compare to the Hospitality industry average (-39.6%).


Return on Equity

High ROE: 2DB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dunkin' Brands Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2DB has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 2DB has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 2DB has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 2DB's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: 2DB's debt is not well covered by operating cash flow (9.9%).

Interest Coverage: 2DB's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: 2DB has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2DB has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Dunkin' Brands Group's current dividend yield, its reliability and sustainability?

1.91%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.5%industryaverage5.3%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: 2DB's dividend (1.92%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 2DB's dividend (1.92%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2DB has been paying a dividend for less than 10 years.

Growing Dividend: 2DB's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.3%), 2DB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2DB's dividends in 3 years are forecast to be covered by earnings (53% payout ratio).


Next Steps

Management

What is the CEO of Dunkin' Brands Group's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Dave Hoffmann (51yo)

1.5yrs

Tenure

US$4,833,544

Compensation

Mr. David L. Hoffmann, also known as Dave, has been Chief Executive Officer of Dunkin' Brands Group, Inc. since July 11, 2018 and its Director since July 10, 2018. Mr. Hoffmann serves as the President of D ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD4.83M) is above average for companies of similar size in the German market ($USD3.59M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.9yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 2DB's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

6.7yrs

Average Tenure

60yo

Average Age

Experienced Board: 2DB's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Gary Heckel

    VP - Concept Development & Restaurant Operating Systems and Member of the Executive Council

    • Karen Raskopf (64yo)

      Chief Communications & Sustainability Officer and Senior VP of Corporate Communications

      • Tenure: 1.9yrs
    • Scott Murphy (46yo)

      President of Dunkin’ Americas

      • Tenure: 6.9yrs
      • Compensation: US$1.31m
    • Stacey Caravella

      Senior Director of Investor Relations & Competitive Intelligence

      • Dave Hoffmann (51yo)

        CEO & Director

        • Tenure: 1.5yrs
        • Compensation: US$4.83m
      • Jack Clare (48yo)

        Chief Information & Strategy Officer

        • Tenure: 4.8yrs
      • Rick Colón (57yo)

        Senior Vice President of Operations & Development

        • Kate Jaspon (42yo)

          Chief Financial Officer

          • Tenure: 2.8yrs
          • Compensation: US$1.33m
        • William Mann

          Senior VP

          • Tenure: 0.8yrs
        • Stephanie Lilak

          Senior VP & Chief Human Resources Officer

          • Tenure: 0.5yrs

        Board Members

        • Anthony DiNovi (56yo)

          Independent Director

          • Tenure: 14yrs
          • Compensation: US$184.84k
        • Mark Nunnelly (60yo)

          Independent Director

          • Tenure: 14yrs
          • Compensation: US$184.84k
        • Nigel Travis (69yo)

          Non-Executive Chairman

          • Tenure: 6.7yrs
          • Compensation: US$5.09m
        • Mike Hines (63yo)

          Independent Director

          • Tenure: 9yrs
          • Compensation: US$201.45k
        • Raul Alvarez (64yo)

          Lead Independent Director

          • Tenure: 6.7yrs
          • Compensation: US$219.13k
        • Caroline Apovian

          Member of Nutrition Advisory Board

          • Aryeh Stein

            Member of Nutrition Advisory Board

            • Janice Bissex

              Member of Nutrition Advisory Board

              • Irene Britt (56yo)

                Independent Director

                • Tenure: 5.7yrs
                • Compensation: US$195.55k
              • Dave Hoffmann (51yo)

                CEO & Director

                • Tenure: 1.5yrs
                • Compensation: US$4.83m

              Company Information

              Dunkin' Brands Group, Inc.'s company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: Dunkin' Brands Group, Inc.
              • Ticker: 2DB
              • Exchange: DB
              • Founded:
              • Industry: Restaurants
              • Sector: Consumer Services
              • Market Cap: US$6.512b
              • Listing Market Cap: US$5.876b
              • Shares outstanding: 82.84m
              • Website: https://www.dunkinbrands.com

              Number of Employees


              Location

              • Dunkin' Brands Group, Inc.
              • 130 Royall Street
              • Canton
              • Massachusetts
              • 2021
              • United States

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              DNKNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2011
              2DBDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2011

              Biography

              Dunkin' Brands Group, Inc., together with its subsidiaries, develops, franchises, and licenses quick service restaurants worldwide. The company operates through five segments: Dunkin' U.S., Dunkin' International, Baskin-Robbins International, Baskin-Robbins U.S., and U.S. Advertising Funds. Its restaurants serve hot and cold coffee, baked goods, and hard serve ice cream. The company also offers packaged coffee, Dunkin’ K-Cup pods, and ready-to-drink bottled iced coffee in retail outlets. As of March 30, 2019, it had 12,900 Dunkin' Donuts restaurants and 8,000 Baskin-Robbins restaurants. The company franchises its restaurants under the Dunkin' Donuts and Baskin-Robbins brands. Dunkin' Brands Group, Inc. is headquartered in Canton, Massachusetts. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/20 22:06
              End of Day Share Price2020/01/20 00:00
              Earnings2019/09/28
              Annual Earnings2018/12/29


              Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.