Dunkin Brands Group (NASDAQ:DNKN) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of Dunkin Brands Group (NASDAQ:DNKN) from a buy rating to a hold rating in a research note issued to investors on Tuesday morning, 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.”

A number of other brokerages have also issued reports on DNKN. BidaskClub lowered Dunkin Brands Group from a buy rating to a hold rating in a research report on Tuesday, September 10th. Citigroup lifted their target price on Dunkin Brands Group from $90.00 to $102.00 and gave the stock a buy rating in a research report on Thursday, August 15th. Goldman Sachs Group started coverage on Dunkin Brands Group in a research report on Monday, July 29th. They set a neutral rating and a $85.00 target price on the stock. Wedbush reaffirmed an outperform rating and set a $92.00 target price on shares of Dunkin Brands Group in a research report on Friday, August 2nd. Finally, Evercore ISI began coverage on Dunkin Brands Group in a research report on Tuesday, June 11th. They set an in-line rating and a $78.00 target price on the stock. Two equities research analysts have rated the stock with a sell rating, fourteen have given a hold rating and six have issued a buy rating to the stock. Dunkin Brands Group currently has an average rating of Hold and a consensus target price of $78.78.

Shares of NASDAQ DNKN opened at $80.91 on Tuesday. Dunkin Brands Group has a 1 year low of $61.69 and a 1 year high of $84.74. The firm has a market cap of $6.72 billion, a price-to-earnings ratio of 26.71, a PEG ratio of 2.71 and a beta of 0.45. The stock’s 50-day simple moving average is $81.68 and its 200-day simple moving average is $77.74.

Dunkin Brands Group (NASDAQ:DNKN) last announced its earnings results on Thursday, August 1st. The restaurant operator reported $0.86 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.82 by $0.04. Dunkin Brands Group had a negative return on equity of 36.53% and a net margin of 17.15%. The business had revenue of $359.30 million for the quarter, compared to analyst estimates of $360.32 million. During the same period in the previous year, the company earned $0.77 earnings per share. The company’s revenue for the quarter was up 2.5% compared to the same quarter last year. On average, research analysts expect that Dunkin Brands Group will post 3.05 EPS for the current fiscal year.

The company 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 annualized dividend and a yield of 1.85%. The ex-dividend date of this dividend was Friday, August 30th. Dunkin Brands Group’s dividend payout ratio is currently 51.72%.

In related news, Director Nigel Travis sold 61,706 shares of the business’s stock in a transaction dated Thursday, August 8th. The stock was sold at an average price of $81.48, for a total value of $5,027,804.88. Following the completion of the sale, the director now directly owns 166,081 shares of the company’s stock, valued at $13,532,279.88. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, SVP John Varughese sold 4,000 shares of the business’s stock in a transaction dated 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 of the company’s stock, valued at $452,607.75. The disclosure for this sale can be found here. Over the last three months, insiders sold 124,077 shares of company stock valued at $10,123,627. 1.70% of the stock is owned by corporate insiders.

A number of hedge funds have recently modified their holdings of the business. Treasurer of the State of North Carolina boosted its stake in Dunkin Brands Group by 2.0% in the second quarter. Treasurer of the State of North Carolina now owns 34,922 shares of the restaurant operator’s stock valued at $2,782,000 after acquiring an additional 670 shares during the period. BlackRock Inc. boosted its stake in Dunkin Brands Group by 1.1% in the second quarter. BlackRock Inc. now owns 7,537,015 shares of the restaurant operator’s stock valued at $600,398,000 after acquiring an additional 78,760 shares during the period. Griffin Asset Management Inc. boosted its stake in Dunkin Brands Group by 1.3% in the second quarter. Griffin Asset Management Inc. now owns 13,715 shares of the restaurant operator’s stock valued at $1,093,000 after acquiring an additional 180 shares during the period. Prudential PLC acquired a new position in Dunkin Brands Group in the second quarter valued at approximately $566,000. Finally, Royal Bank of Canada boosted its stake in Dunkin Brands Group by 2.5% in the second quarter. Royal Bank of Canada now owns 169,193 shares of the restaurant operator’s stock valued at $13,477,000 after acquiring an additional 4,185 shares during the period. Institutional investors own 87.75% of the company’s stock.

Dunkin Brands Group Company Profile

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.

See Also: Outstanding Shares and The Effect on Share Price

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