Dunkin Donuts (NYSE: DNKN) – A Slam DUNK’

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Dunkin Donuts (NYSE: DNKN) – A Slam DUNK’

 

Today, April 23, 2015 Dunkin Donuts(NYSE:DNKN)  reported better than expected 1st Qtr earnings that beat analyst estimates AND raised it’s full-year guidance.

 

Bad Weather? What Bad Weather

 

While coffee is not a seasonal item , the bad winter weather across the nation did not affect their business transactions despite a winter like not seen in many years before.

 

First quarter earnings rose 21%,  a nickel over consensus estimates and revenues grew 8.1% -well above forecasts of 181 million dollars.

 

Fueling this increase in sales can from above average customer traffic, and a focus on their breakfast sandwich business.

 

Partnerships

 

In February 2015, Dunkin’ Brands has been working to create partnerships to bring their Dunkin’ K-Cup packs to retail locations.  This effort has included partnerships with J.M. Smucker and Keurig Green Mountain.  The opportunity to expand outside their in house retail locations presents an excellent opportunity for growth.   Smucker makes Dunkin’ Donuts brand packaged coffee and Keurig is a producer of the K-Cup packs.

Dunkin also expects their Baskin-Robbins brand to grow comps sales between 1-3 % for the year.

 

S&P Index Change

 

Dunkin’ Brands Group Inc. (DNKN) will replace Riverbed Technology Inc. (RVBD) in the S&P MidCap 400 after the close of trading on Monday, April 27. A group led by Thoma Bravo LLC is acquiring Riverbed Technology in a deal expected to be completed tomorrow.

Dunkin’ Brands Group develops, franchises, and licenses quick service restaurants under the Dunkin’ Donuts and Baskin-Robbins brands. Headquartered in Canton, MA, the company will be added to the S&P MidCap 400 GICS (Global Industry Classification Standard) Restaurants Sub-Industry index.

Making Investors Happy

 

As the daily chart below demonstrates, today’s price surge is making Investors very happy each morning when they awake to their favorite beverage( at least in the morning,that is).

DNKN

 

 

IMAGE CREDIT

 

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