Dunkin Brands develops, franchises, and licenses quick service restaurants under the Dunkin Donuts and Baskin-Robbins brands worldwide. The company was founded in 1950 and is based in Canton, Massachusetts.
DNKN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Dunkin' Brands Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Dunkin' Brands Group Inc ranked in the 26th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 62.17%. As for the metrics that stood out in our discounted cash flow analysis of Dunkin' Brands Group Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 3.29 -- which is good for besting 61.22% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
Dunkin' Brands Group Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 11.72% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DNKN, try DLB, LSYN, PLOW, PSO, and SEE.
Dunkin Brands Group Inc's (NASDAQ: DNKN ) recovery from its COVID-19 lows may have occurred a lot sooner than many expected. What Happened: Dunkin' Donuts saw total monthly visits decline by 42.6% year-over-year in May, a figure that has since improved sequentially, according to data compiled by Placer.ai. Monthly visits improved to negative 27.1% in June, negative 15.7% in July and negative 11.3% in August, according to the retail data firm. Trends … Full story available on Benzinga.com
Restaurants have been adversely impacted as a result of COVID-19. The sector has faced many challenges over the past few months, including closures, disrupted distribution flow, and an overall uncertainty for the future. However, while the dine-in aspect of restaurants faces key issues, with people stuck at home, food delivery...
Nikolaos Sismanis on Seeking Alpha | September 25, 2020
Restaurant stocks were brutally punished early on in the pandemic-driven selling this year. That’s with good reason, as many of them were closed for extended periods of time. However, the group has been resilient since the first round of panic selling, and has outperformed the market since the bottom. Dunkin’...
CANTON, Mass., Sept. 2, 2020 /PRNewswire/ -- Dunkin' Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' and Baskin-Robbins, announced today that management will be presenting on Tuesday, September 15, 2020, at the J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management…
Germ-conscious in the pandemic era but still craving a donut and coffee? Procter & Gamble, which has already teamed up with Dunkin' Brands to promote the use of its cleaning products in restaurants, is looking for more partners - and it's hoping for a payoff in the grocery store aisle.