Dunkin’ Brands Group, Inc. (DNKN) Downgraded by Zacks Investment Research

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, July 31st.

According to Zacks, “Dunkin’ Brands’ shares outpaced the industry in the last one year. The company’s second-quarter adjusted earnings beat the Zacks Consensus Estimate by 3.2% and improved 12.3% year over year (y/y). Quarterly revenues also increased 1% y/y but missed the consensus mark by 0.5%. The upside was primarily driven by rise in royalty income and rental income, partly offset by a decrease in sales at company-operated restaurants and sale of ice cream and other products, along with decrease in other revenues. Going forward, the company’s top-line should gain from menu innovation and unit expansion plans. Various sales and digital initiatives like product launches, increased focus on its beverage portfolio, ongoing loyalty program and mobile ordering service also bode well. Yet, intense competition and a soft industry backdrop raise concerns. Also, challenging comps growth in international markets at both its divisions is a potent headwind.”

Other research analysts also recently issued reports about the company. Citigroup Inc. lowered their target price on Dunkin’ Brands Group from $64.00 to $61.00 and set a “buy” rating on the stock in a research note on Tuesday, April 11th. Maxim Group reissued a “buy” rating on shares of Dunkin’ Brands Group in a report on Monday, April 10th. Argus raised Dunkin’ Brands Group from a “hold” rating to a “buy” rating and raised their price target for the company from $58.84 to $68.00 in a report on Tuesday, June 6th. Royal Bank Of Canada reissued a “buy” rating and issued a $64.00 price target on shares of Dunkin’ Brands Group in a report on Friday, July 21st. Finally, Stephens reissued an “equal weight” rating and issued a $54.00 price target on shares of Dunkin’ Brands Group in a report on Wednesday, July 26th. Three analysts have rated the stock with a sell rating, ten have assigned a hold rating and eight have given a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus target price of $57.72.

Dunkin’ Brands Group (NASDAQ:DNKN) opened at 52.41 on Monday. Dunkin’ Brands Group has a one year low of $46.55 and a one year high of $59.70. The firm has a 50-day moving average price of $53.65 and a 200-day moving average price of $54.93. The firm has a market capitalization of $4.73 billion, a P/E ratio of 22.99 and a beta of 0.21.

Dunkin’ Brands Group (NASDAQ:DNKN) last announced its earnings results on Thursday, July 27th. The restaurant operator reported $0.64 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.02. Dunkin’ Brands Group had a negative return on equity of 141.72% and a net margin of 25.48%. The company had revenue of $218.50 million for the quarter, compared to the consensus estimate of $220.77 million. During the same period last year, the business posted $0.57 EPS. The company’s revenue was up 1.0% on a year-over-year basis. Equities analysts anticipate that Dunkin’ Brands Group will post $2.43 earnings per share for the current year.

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In other Dunkin’ Brands Group news, SVP Karen Raskopf sold 33,000 shares of the firm’s stock in a transaction on Wednesday, August 2nd. The stock was sold at an average price of $52.80, for a total transaction of $1,742,400.00. Following the completion of the transaction, the senior vice president now owns 33,000 shares of the company’s stock, valued at $1,742,400. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 3.10% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in DNKN. Schwab Charles Investment Management Inc. increased its position in Dunkin’ Brands Group by 8.0% in the first quarter. Schwab Charles Investment Management Inc. now owns 350,129 shares of the restaurant operator’s stock valued at $19,146,000 after buying an additional 25,926 shares during the last quarter. Advisors Capital Management LLC increased its position in Dunkin’ Brands Group by 7.5% in the second quarter. Advisors Capital Management LLC now owns 176,234 shares of the restaurant operator’s stock valued at $9,714,000 after buying an additional 12,274 shares during the last quarter. State Street Corp increased its position in Dunkin’ Brands Group by 2.8% in the first quarter. State Street Corp now owns 2,321,477 shares of the restaurant operator’s stock valued at $126,937,000 after buying an additional 63,426 shares during the last quarter. Creative Planning increased its position in Dunkin’ Brands Group by 16.9% in the second quarter. Creative Planning now owns 10,466 shares of the restaurant operator’s stock valued at $577,000 after buying an additional 1,512 shares during the last quarter. Finally, Skylands Capital LLC increased its position in Dunkin’ Brands Group by 106.7% in the second quarter. Skylands Capital LLC now owns 50,850 shares of the restaurant operator’s stock valued at $2,803,000 after buying an additional 26,250 shares during the last quarter. 97.91% of the stock is owned by institutional investors.

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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Analyst Recommendations for Dunkin` Brands Group (NASDAQ:DNKN)

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