CLSA Downgrades Dunkin Brands Group to Underperform (DNKN)

Dunkin Brands Group Inc (NASDAQ:DNKN)’s expectations are too high following their impressive beat last quarter, making for an unfavorable risk-reward ratio headed into earnings. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The stock was sold at an average price of $50.90, for a total transaction of $348,003.30. The company plans to open more than 1,000 restaurants in total throughout the state over the long-term.

In an effort to keep the brand fresh and competitive, Dunkin’ Donuts offers flexible concepts for any real estate format including free-standing restaurants, end caps, in-line sites, gas and convenience, travel plazas, universities, as well as other retail environments. Dunkin Brands Group presently has a consensus rating of “Hold” and a consensus target price of $55.11. Dunkin’ Brands Group Inc (DNKN) reported last quarter earnings on April 23. Revenue is expected to be $203.6 million for the quarter, compared to $190.9 million a year earlier. The stock has a 50-day moving average of $54.28 and a 200-day moving average of $49.81.

A recent analyst activity consisted of Goldman Sachs downgrading their Buy rating to Neutral on July 9.

The Street is expecting Dunkin’ Brands to report $0.48 a share when it reports before bell. During the same quarter past year, the company posted $0.33 earnings per share. Finally, analysts at RBC Capital raised their price target on shares of Dunkin Brands Group from $60.00 to $62.00 and gave the company an outperform rating in a research note on Tuesday, June 23rd.

In spite of the company’s rating downgrade NASDAQ:DNKN is now trading 1.05% higher at $55.56 as of 11:05 New York time. On average, analysts predict that Dunkin Brands Group will post $1.91 earnings per share for the current fiscal year.

The stock price of Dunkin Brands Group has skyrocketed 23.27% over the last 200 days, and is in powerful up trend. Unlike other quick-service restaurants, Dunkin’ Donuts allows franchisees to select individual elements from any of the four options, creating a restaurant design that reflects their personal tastes and preferences, and best serves their specific restaurant size and location.

The company has signed agreements with two franchise groups. The Company has over 17,400 points of distribution in 55 countries.

“As we continue Dunkin’ Donuts’ strategic expansion across Europe, we’re very pleased to announce our upcoming entry into Poland”, said Paul Twohig, President, Dunkin’ Donuts USA and Canada, and Dunkin’ Donuts & Baskin-Robbins Europe and Latin America.