NasdaqGS:DNKN

Stock Analysis Report

Executive Summary

Dunkin' Brands Group, Inc., together with its subsidiaries, franchises and licenses quick service restaurants in the United States and internationally.


Snowflake Analysis

Proven track record second-rate dividend payer.


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: DNKN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.9%

DNKN

-2.9%

US Hospitality

5.3%

US Market


1 Year Return

-28.8%

DNKN

-44.7%

US Hospitality

-10.7%

US Market

Return vs Industry: DNKN exceeded the US Hospitality industry which returned -44.7% over the past year.

Return vs Market: DNKN underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

DNKNIndustryMarket
7 Day1.9%-2.9%5.3%
30 Day-24.8%-36.3%-13.6%
90 Day-30.6%-48.2%-19.8%
1 Year-27.4%-28.8%-43.2%-44.7%-8.9%-10.7%
3 Year8.5%1.8%-31.4%-36.1%15.5%8.0%
5 Year22.8%9.8%-25.5%-33.8%35.2%20.4%

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

Valuation

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

33.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DNKN ($53.1) is trading below our estimate of fair value ($79.49)

Significantly Below Fair Value: DNKN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DNKN is poor value based on its PE Ratio (18.2x) compared to the Hospitality industry average (12.4x).

PE vs Market: DNKN is poor value based on its PE Ratio (18.2x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: DNKN is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: DNKN has negative assets, so we can't compare its PB Ratio to the US 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 23 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DNKN's forecast earnings growth (5.3% per year) is above the savings rate (1.7%).

Earnings vs Market: DNKN's earnings (5.3% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: DNKN's revenue (2.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: DNKN's revenue (2.4% 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 DNKN'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?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNKN has high quality earnings.

Growing Profit Margin: DNKN's current net profit margins (17.7%) are higher than last year (17.5%).


Past Earnings Growth Analysis

Earnings Trend: DNKN's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: DNKN's earnings growth over the past year (4.9%) is below its 5-year average (13% per year).

Earnings vs Industry: DNKN earnings growth over the past year (4.9%) exceeded the Hospitality industry 1.6%.


Return on Equity

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


Next Steps

Financial Health

How is Dunkin' Brands Group's financial position?


Financial Position Analysis

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

Long Term Liabilities: DNKN 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: DNKN has negative shareholder equity, which is a more serious situation than a high debt level.

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

Debt Coverage: DNKN's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: DNKN's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: DNKN 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?

3.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DNKN's dividend (3.03%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: DNKN's dividend (3.03%) is low compared to the top 25% of dividend payers in the US market (5.37%).


Stability and Growth of Payments

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

Growing Dividend: DNKN'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%), DNKN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DNKN's dividends in 3 years are forecast to be covered by earnings (53.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Dave Hoffmann (51yo)

1.75s

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 ($USD4.83M) is about average for companies of similar size in the US market ($USD5.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Hoffmann
CEO & Director1.75yrsUS$4.83m0.050% $2.2m
Katherine Jaspon
Chief Financial Officer3yrsUS$1.33m0.0069% $304.3k
Scott Murphy
President of Dunkin’ Americas7.17yrsUS$1.31m0.014% $634.0k
Gary Heckel
VP - Concept Development & Restaurant Operating Systems and Member of the Executive Councilno datano datano data
Rick Colón
Senior Vice President of Operations & Developmentno datano datano data
Stacey Caravella
Senior Director of Investor Relations & Competitive Intelligenceno datano datano data
William Mann
Senior VP1.08yrsno data0.0064% $281.5k
Karen Raskopf
Senior VP and Chief Communications & Sustainability Officer2.17yrsno data0.0030% $132.4k
Stephanie Lilak
Senior VP & Chief Human Resources Officer0.75yrno datano data
John Varughese
Senior Vice President of International1.42yrsno data0.0032% $141.2k

1.8yrs

Average Tenure

52yo

Average Age

Experienced Management: DNKN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Hoffmann
CEO & Director1.75yrsUS$4.83m0.050% $2.2m
Anthony DiNovi
Independent Director14.25yrsUS$187.52k0.014% $609.5k
Mark Nunnelly
Independent Director14.25yrsUS$187.52k0.014% $609.5k
Nigel Travis
Non-Executive Chairman6.92yrsUS$5.09m0.20% $9.0m
Michael Hines
Independent Director9.25yrsUS$205.02k0.021% $900.6k
Ralph Alvarez
Lead Independent Director6.92yrsUS$245.02k0.016% $701.6k
Caroline Apovian
Member of Nutrition Advisory Boardno datano datano data
Aryeh Stein
Member of Nutrition Advisory Boardno datano datano data
Janice Bissex
Member of Nutrition Advisory Boardno datano datano data
Irene Britt
Independent Director5.92yrsUS$200.02k0.010% $450.3k

6.9yrs

Average Tenure

60yo

Average Age

Experienced Board: DNKN's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DNKN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Dunkin' Brands Group, Inc.
  • Ticker: DNKN
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$4.385b
  • Shares outstanding: 82.58m
  • 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
2DBBRSE (Berne Stock Exchange)YesCommon StockCHCHFJul 2011

Biography

Dunkin' Brands Group, Inc., together with its subsidiaries, franchises and licenses quick service restaurants in the United States and internationally. 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 franchises its restaurants under the Dunkin’ and Baskin-Robbins brands. It also licenses Dunkin’ brand products sold in retail outlets, such as retail packaged coffee, Dunkin’ K-Cup pods, and ready-to-drink bottled iced coffee; and distributes Baskin-Robbins ice cream products to international markets for sale in Baskin-Robbins restaurants and other retail outlets. As of December 28, 2019, it had 13,137 Dunkin' restaurants and 8,160 Baskin-Robbins restaurants. 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 Analysis2020/04/01 13:55
End of Day Share Price2020/03/31 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.