Dunkin’ Expects Sales at Stores Open at Least a Year to Slow

If this stock bottoms out, this may be a good time to buy in at a discounted price, but it has certainly been a volatile pick today. The sentiment score for Dunkin’ Brands Group, Inc. was 0.435 for stories published on 2015-10-01. In its investor presentation, Dunkin’ points to the avian flu outbreak, which has caused the price of eggs to soar, as well as more macro concerns like currency volatility, interest rate uncertainty, and potential movement in the minimum wage.

Dunkin’ Brands Group, facing increased competition for consumers’ breakfast dollars, on Thursday suffered its worst stock decline, 12.2 percent, since the Canton-based company went public in 2011. The stock has a market cap of $4.20 billion and a price-to-earnings ratio of 25.72. Credit Agricole lowered Dunkin Brands Group from an outperform rating to an underperform rating in a research report on Monday, July 20th. The company reported $0.50 EPS for the quarter, topping analysts’ consensus estimates of $0.48 by $0.02. The company had revenue of $211.40 million for the quarter, compared to analysts’ expectations of $204.21 million. The company’s revenue for the quarter was up 10.7% on a year-over-year basis.

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 2nd. The ex-dividend date was Thursday, August 20th.

We rate DUNKIN’ BRANDS GROUP INC (DNKN) a BUY.

For the full fiscal year, it estimated between 1 – 3% same-store sales growth for Dunkin’ Donuts and Baskin-Robbins.

Now what: Going forward, Dunkin’ also reiterated guidance for development of 410 to 440 net new Dunkin’ Donuts restaurants in the US this year – though this doesn’t include impending plans to close 100 franchise-owned, Speedway-operated self-service locations. The locations represent about 0.1 percent of the chain’s domestic sales. In November, Dunkin’ Donuts will test mobile ordering through its Dunkin’s DD Perks loyalty program in Portland, Maine before a planned national rollout next year.