Zacks Investment Research downgraded shares of Dunkin Brands Group (NASDAQ:DNKN) from a buy rating to a hold rating in a report issued on Tuesday, Zacks.com reports. They currently have $84.00 price objective on the restaurant operator’s stock.
According to Zacks, “Dunkin’ Brands performed in line with the industry year to date. The company’s franchised business model, various sales-building initiatives like product launches, aggressive expansion and ongoing loyalty program along with enhanced digital offerings bode well. Moreover, earnings estimates over the past 60 days have been witnessing an upward trend. With demand for coffee expected to grow going forward, Dunkin’ Brands is continuously adding new coffee beverages to the menu. However, it is witnessing dismal sales at Baskin-Robbins International, which adds to the concern. Intense competition from larger fast-casual companies, a soft consumer spending environment, challenging international markets and a shift in ice cream consumption remain potent headwinds. Also, high costs of operations raise a concern.”
Other equities analysts have also recently issued reports about the stock. Wedbush restated an outperform rating and set a $92.00 price target on shares of Dunkin Brands Group in a report on Friday, August 2nd. Citigroup boosted their price target on shares of Dunkin Brands Group from $90.00 to $102.00 and gave the company a buy rating in a report on Thursday, August 15th. Goldman Sachs Group assumed coverage on shares of Dunkin Brands Group in a report on Monday, July 29th. They set a neutral rating and a $85.00 price target on the stock. BidaskClub cut shares of Dunkin Brands Group from a buy rating to a hold rating in a report on Tuesday, September 10th. Finally, Wells Fargo & Co boosted their price target on shares of Dunkin Brands Group from $68.00 to $78.00 and gave the company a market perform rating in a report on Monday, July 15th. Two research analysts have rated the stock with a sell rating, fourteen have given a hold rating and six have given a buy rating to the company. Dunkin Brands Group has a consensus rating of Hold and an average target price of $78.78.
Dunkin Brands Group (NASDAQ:DNKN) last posted its quarterly earnings results on Thursday, August 1st. The restaurant operator reported $0.86 EPS for the quarter, beating the consensus estimate of $0.82 by $0.04. Dunkin Brands Group had a net margin of 17.15% and a negative return on equity of 36.53%. The business had revenue of $359.30 million for the quarter, compared to analysts’ expectations of $360.32 million. During the same period in the previous year, the company posted $0.77 EPS. Dunkin Brands Group’s revenue was up 2.5% on a year-over-year basis. On average, research analysts anticipate that Dunkin Brands Group will post 3.05 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 12th. Investors of record on Tuesday, September 3rd were issued a $0.375 dividend. This represents a $1.50 dividend on an annualized basis and a yield of 1.85%. The ex-dividend date was Friday, August 30th. Dunkin Brands Group’s dividend payout ratio is presently 51.72%.
In related news, SVP John Varughese sold 4,000 shares of the company’s stock in a transaction on Friday, August 16th. The shares were sold at an average price of $83.43, for a total value of $333,720.00. Following the completion of the sale, the senior vice president now directly owns 5,425 shares in the company, valued at $452,607.75. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Nigel Travis sold 25,000 shares of the company’s stock in a transaction on Thursday, August 15th. The stock was sold at an average price of $82.53, for a total transaction of $2,063,250.00. Following the completion of the sale, the director now owns 172,624 shares of the company’s stock, valued at $14,246,658.72. The disclosure for this sale can be found here. Insiders sold 124,077 shares of company stock valued at $10,123,627 over the last quarter. 1.70% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently added to or reduced their stakes in DNKN. Semmax Financial Advisors Inc. boosted its holdings in Dunkin Brands Group by 525.9% during the first quarter. Semmax Financial Advisors Inc. now owns 363 shares of the restaurant operator’s stock valued at $27,000 after acquiring an additional 305 shares during the period. Private Capital Group LLC boosted its holdings in Dunkin Brands Group by 29.7% during the second quarter. Private Capital Group LLC now owns 529 shares of the restaurant operator’s stock valued at $37,000 after acquiring an additional 121 shares during the period. Penserra Capital Management LLC bought a new stake in Dunkin Brands Group during the first quarter valued at about $38,000. Bremer Bank National Association bought a new stake in Dunkin Brands Group during the first quarter valued at about $41,000. Finally, Oakworth Capital Inc. bought a new stake in Dunkin Brands Group during the second quarter valued at about $42,000. Institutional investors own 87.75% of the company’s stock.
About Dunkin Brands Group
Dunkin' Brands Group, Inc, together with its subsidiaries, develops, franchises, and licenses quick service restaurants worldwide. The company operates through five segments: Dunkin' U.S., Dunkin' International, Baskin-Robbins International, Baskin-Robbins U.S., and U.S. Advertising Funds.
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