Dunkin Brands Group (DNKN) Upgraded to Outperform by William Blair

Dunkin Brands Group (NASDAQ:DNKN) was upgraded by stock analysts at William Blair from a “market perform” rating to an “outperform” rating in a research note issued to investors on Monday.

Several other analysts also recently weighed in on the company. Barclays restated an “overweight” rating and issued a $70.00 price target (up previously from $63.00) on shares of Dunkin Brands Group in a research note on Tuesday, January 16th. BMO Capital Markets set a $64.00 target price on Dunkin Brands Group and gave the company a “hold” rating in a research note on Friday, January 12th. BidaskClub downgraded Dunkin Brands Group from a “buy” rating to a “hold” rating in a research note on Tuesday, January 9th. Zacks Investment Research upgraded Dunkin Brands Group from a “hold” rating to a “buy” rating and set a $74.00 target price on the stock in a research note on Thursday, January 4th. Finally, Maxim Group increased their target price on Dunkin Brands Group from $64.00 to $71.00 and gave the company a “buy” rating in a research note on Tuesday, January 2nd. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating and ten have given a buy rating to the stock. Dunkin Brands Group presently has a consensus rating of “Hold” and an average target price of $61.05.

Shares of Dunkin Brands Group (DNKN) opened at $64.56 on Monday. The company has a debt-to-equity ratio of -13.82, a current ratio of 1.43 and a quick ratio of 1.43. The firm has a market capitalization of $5,831.25, a P/E ratio of 28.19, a P/E/G ratio of 1.60 and a beta of 0.30. Dunkin Brands Group has a 52 week low of $50.54 and a 52 week high of $66.44.

Dunkin Brands Group (NASDAQ:DNKN) last posted its quarterly earnings results on Thursday, October 26th. The restaurant operator reported $0.61 earnings per share for the quarter, missing the consensus estimate of $0.63 by ($0.02). The company had revenue of $224.20 million during the quarter, compared to analysts’ expectations of $214.60 million. Dunkin Brands Group had a negative return on equity of 140.12% and a net margin of 24.91%. The business’s quarterly revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.60 EPS. analysts forecast that Dunkin Brands Group will post 2.42 earnings per share for the current fiscal year.

Dunkin Brands Group declared that its board has initiated a share buyback program on Thursday, October 26th that permits the company to repurchase $650.00 million in outstanding shares. This repurchase authorization permits the restaurant operator to purchase shares of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.

Hedge funds have recently added to or reduced their stakes in the company. Schwab Charles Investment Management Inc. boosted its stake in shares of Dunkin Brands Group by 8.0% in the 1st quarter. Schwab Charles Investment Management Inc. now owns 350,129 shares of the restaurant operator’s stock worth $19,146,000 after buying an additional 25,926 shares during the last quarter. Deprince Race & Zollo Inc. boosted its stake in shares of Dunkin Brands Group by 8.6% in the 2nd quarter. Deprince Race & Zollo Inc. now owns 825,297 shares of the restaurant operator’s stock worth $35,999,000 after buying an additional 65,081 shares during the last quarter. Atria Investments boosted its stake in shares of Dunkin Brands Group by 18.8% in the 4th quarter. Atria Investments now owns 8,410 shares of the restaurant operator’s stock worth $322,000 after buying an additional 1,331 shares during the last quarter. Manning & Napier Advisors purchased a new position in shares of Dunkin Brands Group in the 4th quarter worth $15,538,000. Finally, Janus Capital Management boosted its stake in shares of Dunkin Brands Group by 21.4% in the 3rd quarter. Janus Capital Management now owns 5,470,865 shares of the restaurant operator’s stock worth $268,073,000 after buying an additional 962,730 shares during the last quarter. Hedge funds and other institutional investors own 90.70% of the company’s stock.

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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.

Analyst Recommendations for Dunkin Brands Group (NASDAQ:DNKN)

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