Dunkin’ Brands Group, Inc. (DNKN) Rating Lowered to Hold at Zacks Investment Research
Dunkin’ Brands Group, Inc. (NASDAQ:DNKN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.
According to Zacks, “Dunkin’ Brands’ third-quarter adjusted earnings missed the Zacks Consensus Estimate by 3.2% but improved 1.7% year over year (y/y) on higher revenues and a lower share count. Quarterly revenues increased 8.2% y/y and outpaced the consensus mark by 0.5%. The upside was driven by a rise in franchisee fees and royalty income, coupled with increased rental income as well as other revenues. Notably, Dunkin’ Brands’ shares have outperformed the industry over the last year Going forward, the company’s top-line is likely to gain from menu innovation and unit expansion plans. Various sales initiatives like product launches, increased focus on its beverage portfolio, ongoing loyalty program along with enhanced digital offerings also bode well. Yet, intense competition and a soft industry backdrop raise concerns. Moreover, challenging comps growth in international markets at both its divisions remains a potent headwind.”
Other research analysts have also issued reports about the stock. Mizuho lowered shares of Dunkin’ Brands Group from a “neutral” rating to an “underperform” rating and set a $56.00 target price for the company. in a research report on Thursday. BMO Capital Markets reiterated a “hold” rating on shares of Dunkin’ Brands Group in a research report on Wednesday, September 6th. Maxim Group reiterated a “buy” rating and issued a $64.00 target price on shares of Dunkin’ Brands Group in a research report on Thursday, July 27th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $64.00 target price on shares of Dunkin’ Brands Group in a research report on Thursday, August 3rd. Finally, Cowen and Company reiterated a “hold” rating and issued a $55.00 target price on shares of Dunkin’ Brands Group in a research report on Friday. Three equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and eight have given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus price target of $58.42.
Shares of Dunkin’ Brands Group (NASDAQ DNKN) traded up 1.86% during midday trading on Monday, hitting $55.84. The company’s stock had a trading volume of 949,261 shares. The firm has a market cap of $5.04 billion, a P/E ratio of 24.49 and a beta of 0.24. The stock’s 50 day moving average is $54.11 and its 200-day moving average is $54.65. Dunkin’ Brands Group has a 52-week low of $46.55 and a 52-week high of $59.70.
Dunkin’ Brands Group (NASDAQ:DNKN) last released its quarterly earnings results on Thursday, October 26th. The restaurant operator reported $0.61 EPS for the quarter, missing analysts’ consensus estimates of $0.63 by ($0.02). The firm had revenue of $224.20 million for the quarter, compared to analysts’ expectations of $214.60 million. Dunkin’ Brands Group had a net margin of 24.91% and a negative return on equity of 140.12%. The firm’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.60 earnings per share. Equities analysts predict that Dunkin’ Brands Group will post $2.42 EPS for the current fiscal year.
Dunkin’ Brands Group announced that its Board of Directors has authorized a share buyback program on Thursday, October 26th that allows the company to repurchase $650.00 million in outstanding shares. This repurchase authorization allows the restaurant operator to buy shares of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its shares are undervalued.
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In other Dunkin’ Brands Group news, SVP Karen Raskopf sold 33,000 shares of the company’s stock in a transaction dated Wednesday, August 2nd. The shares were sold at an average price of $52.80, for a total value of $1,742,400.00. Following the sale, the senior vice president now owns 33,000 shares in the company, valued at $1,742,400. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 3.10% of the stock is currently owned by corporate insiders.
Several large investors have recently bought and sold shares of the company. Janus Henderson Group PLC purchased a new stake in shares of Dunkin’ Brands Group during the second quarter valued at approximately $474,315,000. BlackRock Inc. grew its holdings in shares of Dunkin’ Brands Group by 1.4% during the second quarter. BlackRock Inc. now owns 7,271,183 shares of the restaurant operator’s stock valued at $400,787,000 after buying an additional 101,819 shares during the last quarter. Vanguard Group Inc. grew its holdings in shares of Dunkin’ Brands Group by 1.4% during the second quarter. Vanguard Group Inc. now owns 7,265,562 shares of the restaurant operator’s stock valued at $400,478,000 after buying an additional 103,573 shares during the last quarter. State Street Corp grew its holdings in shares of Dunkin’ Brands Group by 1.6% during the second quarter. State Street Corp now owns 2,357,509 shares of the restaurant operator’s stock valued at $129,945,000 after buying an additional 36,032 shares during the last quarter. Finally, First Manhattan Co. grew its holdings in shares of Dunkin’ Brands Group by 7.1% during the third quarter. First Manhattan Co. now owns 1,464,062 shares of the restaurant operator’s stock valued at $77,712,000 after buying an additional 97,099 shares during the last quarter. Hedge funds and other institutional investors own 93.73% of the company’s stock.
About Dunkin’ Brands Group
Dunkin’ Brands Group, Inc is a franchisor of quick service restaurants (QSRs) serving hot and cold coffee and baked goods, as well as hard serve ice cream. The Company franchises restaurants under its Dunkin’ Donuts and Baskin-Robbins brands. The Company operates through four segments: Dunkin’ Donuts-U.S., Dunkin’ Donuts International, Baskin-Robbins International and Baskin-Robbins-U.S.
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