Zacks Investment Research downgraded shares of Dunkin’ Brands Group, Inc. (NASDAQ:DNKN) from a buy rating to a hold rating in a research report released on Monday, October 30th.
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.”
A number of other equities analysts also recently weighed in on DNKN. BidaskClub downgraded shares of Dunkin’ Brands Group from a hold rating to a sell rating in a report on Wednesday, July 19th. Royal Bank Of Canada reaffirmed a buy rating and set a $64.00 price objective on shares of Dunkin’ Brands Group in a research report on Friday, July 21st. Stephens reaffirmed an equal weight rating and set a $54.00 price objective on shares of Dunkin’ Brands Group in a research report on Wednesday, July 26th. Maxim Group reaffirmed a buy rating and set a $64.00 price objective on shares of Dunkin’ Brands Group in a research report on Thursday, July 27th. Finally, BMO Capital Markets lifted their price objective on shares of Dunkin’ Brands Group from $52.00 to $58.00 and gave the stock a market perform rating in a research report on Friday, July 28th. Three research analysts have rated the stock with a sell rating, ten have assigned a hold rating and eight have given a buy rating to the stock. The stock currently has an average rating of Hold and a consensus price target of $58.58.
Shares of Dunkin’ Brands Group (DNKN) opened at $57.49 on Monday. The stock has a market cap of $5,192.67, a P/E ratio of 23.66, a PEG ratio of 1.79 and a beta of 0.30. Dunkin’ Brands Group has a fifty-two week low of $49.72 and a fifty-two week high of $60.66. The company has a quick ratio of 1.43, a current ratio of 1.43 and a debt-to-equity ratio of -13.82.
Dunkin’ Brands Group (NASDAQ:DNKN) last issued its earnings results on Thursday, October 26th. The restaurant operator reported $0.61 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.63 by ($0.02). The firm had revenue of $224.20 million for the quarter, compared to analyst estimates of $214.60 million. Dunkin’ Brands Group had a negative return on equity of 140.12% and a net margin of 24.91%. Dunkin’ Brands Group’s quarterly revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.60 earnings per share. sell-side analysts predict that Dunkin’ Brands Group will post 2.42 EPS for the current fiscal year.
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Dunkin’ Brands Group declared that its board has initiated a stock buyback plan on Thursday, October 26th that permits the company to repurchase $650.00 million in shares. This repurchase authorization permits the restaurant operator to buy shares of its stock through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 6th. Stockholders of record on Monday, November 27th will be paid a $0.322 dividend. This represents a $1.29 annualized dividend and a dividend yield of 2.24%. The ex-dividend date is Friday, November 24th. Dunkin’ Brands Group’s dividend payout ratio is currently 56.33%.
A number of hedge funds have recently made changes to their positions in the stock. Janus Henderson Group PLC boosted its holdings in Dunkin’ Brands Group by 0.3% in the third quarter. Janus Henderson Group PLC now owns 8,626,960 shares of the restaurant operator’s stock valued at $457,919,000 after acquiring an additional 21,819 shares during the last quarter. BlackRock Inc. boosted its holdings in Dunkin’ Brands Group by 1.4% in the second quarter. BlackRock Inc. now owns 7,271,183 shares of the restaurant operator’s stock valued at $400,787,000 after acquiring an additional 101,819 shares during the last quarter. Vanguard Group Inc. boosted its holdings in Dunkin’ Brands Group by 1.4% in the second quarter. Vanguard Group Inc. now owns 7,265,562 shares of the restaurant operator’s stock valued at $400,478,000 after acquiring an additional 103,573 shares during the last quarter. State Street Corp boosted its holdings in Dunkin’ Brands Group by 1.6% in the second quarter. State Street Corp now owns 2,357,509 shares of the restaurant operator’s stock valued at $129,945,000 after acquiring an additional 36,032 shares during the last quarter. Finally, Jackson Square Partners LLC boosted its holdings in Dunkin’ Brands Group by 2.9% in the third quarter. Jackson Square Partners LLC now owns 1,770,558 shares of the restaurant operator’s stock valued at $93,981,000 after acquiring an additional 50,204 shares during the last quarter. Institutional investors and hedge funds own 92.04% 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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