Dunkin Donuts Continues to Expand in U.S. - Analyst Blog
April 03 2013 - 2:10PM
Zacks
Canton, MA based leading quick service restaurant chain,
Dunkin' Brands Group, Inc.’s (DNKN) subsidiary
Dunkin’ Donuts is all set to launch its new restaurants in Northern
Utah. In this regard, Dunkin’ has entered into a multi-unit deal
with its existing franchisee, Sizzling Donuts, LLC.
Under the terms of the agreement, Sizzling Donuts will introduce
7 new restaurants in Northern Utah over the next 7 years with the
first unit slated to open for business in 2013.
Since Washington County in Utah remains relatively
under-penetrated, management is focused on expanding in the region.
As a result, they have not set any minimum limit on the number of
units and are going with both single and multi-unit opportunities.
.
As per the National Restaurant Association, total revenues from
the restaurant sector in Utah are projected to be around $3.5
billion in 2013. Various other restaurateurs including The
Cheesecake Factory Incorporated (CAKE) and
Starbucks Corporation (SBUX) have been active in
the city for years.
As a point of reference, this unit expansion is part of the
company’s goal to double its portfolio in the U.S. over the next 20
years. Dunkin is focused on a strategy to seize growth
opportunities by catering to the consumer needs of individual
markets. In 2013, Dunkin will introduce 300-360 Dunkin Donuts units
in the U.S., resulting in an annual new unit growth rate of 4.5% -
5%.
In 2012, Dunkin signed an agreement with Sizzling Donuts, LLC,
an operational arm of Sizzling Platter, LLC, to open 36 new
restaurants across Salt Lake City, El Paso and Denver. in the
coming years. As of now, Sizzling Donuts has started operating 5
Dunkin’ units in El Paso.
Dunkin' Brands currently retains a Zacks Rank #2 (Buy). Another
restaurant chain worth considering is Red Robin Gourmet
Burgers Inc. (RRGB) with a Zacks Rank #1 (Strong Buy).
CHEESECAKE FACT (CAKE): Free Stock Analysis Report
DUNKIN BRANDS (DNKN): Free Stock Analysis Report
RED ROBIN GOURM (RRGB): Free Stock Analysis Report
STARBUCKS CORP (SBUX): 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