Zacks Investment Research Downgrades Dunkin’ Brands Group, Inc. (DNKN) to Hold

Dunkin’ Brands Group, Inc. (NASDAQ:DNKN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday.

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 research firms have also weighed in on DNKN. Maxim Group reaffirmed a “buy” rating and set a $64.00 target price on shares of Dunkin’ Brands Group in a report on Tuesday, October 17th. BidaskClub raised shares of Dunkin’ Brands Group from a “sell” rating to a “hold” rating in a research note on Saturday, August 5th. Wedbush reissued a “hold” rating and issued a $56.00 price target on shares of Dunkin’ Brands Group in a research note on Friday, October 27th. Robert W. Baird reissued a “buy” rating and issued a $63.00 price target on shares of Dunkin’ Brands Group in a research note on Friday, October 20th. Finally, JMP Securities boosted their price target on shares of Dunkin’ Brands Group from $59.00 to $62.00 and gave the stock an “outperform” rating in a research note on Wednesday, September 6th. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating and eight have given a buy rating to the stock. The company has an average rating of “Hold” and a consensus price target of $58.58.

Shares of Dunkin’ Brands Group (NASDAQ DNKN) opened at 59.07 on Monday. The firm has a market cap of $5.33 billion, a price-to-earnings ratio of 25.91 and a beta of 0.24. Dunkin’ Brands Group has a 52-week low of $46.55 and a 52-week high of $60.66. The company’s 50 day moving average is $54.52 and its 200 day moving average is $54.73.

Dunkin’ Brands Group (NASDAQ:DNKN) last posted 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 the consensus estimate 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 revenue was up 8.3% on a year-over-year basis. During the same period last year, the company posted $0.60 EPS. Analysts anticipate that Dunkin’ Brands Group will post $2.42 earnings per share for the current year.

Dunkin’ Brands Group announced that its Board of Directors has initiated a share buyback plan on Thursday, October 26th that allows the company to repurchase $650.00 million in shares. This repurchase authorization allows the restaurant operator to reacquire shares of its stock through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

WARNING: “Zacks Investment Research Downgrades Dunkin’ Brands Group, Inc. (DNKN) to Hold” was posted by Community Financial News and is owned by of Community Financial News. If you are viewing this story on another publication, it was stolen and reposted in violation of US & international trademark and copyright laws. The correct version of this story can be read at https://www.com-unik.info/2017/11/01/zacks-investment-research-downgrades-dunkin-brands-group-inc-dnkn-to-hold.html.

Institutional investors have recently made changes to their positions 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 valued at $19,146,000 after purchasing an additional 25,926 shares in the last quarter. SG Americas Securities LLC boosted its position in Dunkin’ Brands Group by 40.1% during the 2nd quarter. SG Americas Securities LLC now owns 31,254 shares of the restaurant operator’s stock valued at $1,723,000 after buying an additional 8,941 shares during the period. Bank of New York Mellon Corp boosted its position in Dunkin’ Brands Group by 0.3% during the 2nd quarter. Bank of New York Mellon Corp now owns 1,172,993 shares of the restaurant operator’s stock valued at $64,656,000 after buying an additional 3,836 shares during the period. Victory Capital Management Inc. boosted its position in Dunkin’ Brands Group by 82.0% during the 2nd quarter. Victory Capital Management Inc. now owns 1,269,121 shares of the restaurant operator’s stock valued at $69,954,000 after buying an additional 571,831 shares during the period. Finally, Oppenheimer & Co. Inc. boosted its position in Dunkin’ Brands Group by 73.0% during the 2nd quarter. Oppenheimer & Co. Inc. now owns 23,632 shares of the restaurant operator’s stock valued at $1,303,000 after buying an additional 9,974 shares during the period. 93.73% of the stock is owned by institutional investors.

Dunkin’ Brands Group Company Profile

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)

What are top analysts saying about Dunkin' Brands Group Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Dunkin' Brands Group Inc. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit