Dunkin Strengthens Foothold in Ohio - Analyst Blog
March 08 2013 - 8:10AM
Zacks
In a bid to expand its presence in
Ohio., Dunkin' Brands Group Inc.’s (DNKN)
subsidiary Dunkin Donuts and Gilligan Oil Company LLC. has recently
entered into a multi-unit store development contract. Under the
terms of the agreement, Dunkin will launch 13 new restaurants in
Dayton, Ohio. with the first unit slated to open in 2014.
With these openings, Dunkin will be
extending its coverage in Toledo, Lima and other southeast regions
of Ohio. The company has chosen Ohio because of its promising
growth opportunity. As per the National Restaurant Association,
total revenues from the restaurant sector in Ohio are projected to
be around $17.4 billion in 2013.
These moves are part of Dunkin’s
strategy to increase its footprint in the U.S. over the next 20
years. Dunkin is also keen on seizing growth opportunities by
catering to the consumer needs of individual markets through
augmenting its restaurant efficiency.
Dunkin recently posted
fourth-quarter 2012 adjusted earnings of 34 cents per share,
beating the Zacks Consensus Estimate by a cent and the year-ago
quarter’s earnings of 30 cents. During the fourth quarter, Dunkin'
Donuts U.S. revenues increased 3.4% annually to $128.1 million on
the back of a high royalty income, rise in other revenues and
company-owned restaurants’ sales.
In 2013, Dunkin will introduce
nearly 300-360 Dunkin' Donuts units in the U.S., which will
represent an annual new unit growth rate of 4.5 - 5%. Currently,
Dunkin expects that its annual development rate will be 5% in the
long term. Further, the company intends to open nearly 15,000
restaurants under Dunkin' Donuts brand in U.S. in the next 3-5
years.
Dunkin' Brands currently retains a
Zacks Rank #2 (Buy). Other restaurant chains which are active in
Ohio for years include Krispy Kreme Doughnuts,
Inc. (KKD), Burger King Worldwide, Inc
(BKW) and Red Robin Gourmet Burgers Inc. (RRGB).
Both Krispy Kreme and Burger King have a Zacks Rank #2 (Buy) while
Red Robin carriers a Zacks Rank #1 (Strong Buy).
BURGER KING WWD (BKW): Free Stock Analysis Report
DUNKIN BRANDS (DNKN): Free Stock Analysis Report
KRISPY KREME (KKD): Free Stock Analysis Report
RED ROBIN GOURM (RRGB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Red Robin Gourmet Burgers (NASDAQ:RRGB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Red Robin Gourmet Burgers (NASDAQ:RRGB)
Historical Stock Chart
From Jul 2023 to Jul 2024