Dunkin' Donuts (DNKN) to Expand Presence in North Carolina
The fast food giant, Dunkin’ Donuts, which is part of Dunkin’ Brands Group, Inc. DNKN, is geared up to expand further in North Carolina. The company has inked multi-unit store development agreements with two franchisees whereby it plans to build a total of 12 restaurants in the state over the next several years.
Details
The first agreement is with a new franchisee group, HARA Foodservice Group, LLC, which plans to develop four new outlets in the Charlotte area. Notably, the franchise’s first restaurant is set to open in 2018.
The second agreement is with existing franchisee group, Carolina Donuts, LLC, which recently acquired five existing Dunkin' Donuts restaurants throughout the Winston-Salem area. Currently, it operates 12 outlets all over Florida and Tennessee. Per the agreement, the franchisee is expected to develop eight new Dunkin' Donuts restaurants throughout the Winston-Salem area, with the first one scheduled to be launched in 2018.
Rationale Behind
These agreements are in sync with the company’s plan to fuel growth in North Carolina. Currently, the state is home to over 300 Dunkin’ Donuts outlets and the company is continuing to recruit more franchisees in various areas. It is also offering special development incentives to help fuel growth therein.
Apart from foraying into domestic markets, the company is also looking to expand its footprint internationally, especially in the emerging markets of Asia and the Middle East. Presently, the company has more than 12,200 Dunkin’ Donuts restaurants in 45 countries globally and is on track to achieve its long-term goal of opening 17,000 restaurants in the U.S.
Bottom Line
Dunkin' Brands is placed among the well-established global quick service restaurant brands. Notably, its shares have outperformed the broader Zacks categorized Retail–Restaurants industry over the past one year. While the stock returned 7.6%, the industry witnessed a decline of 3.2%.
Notably, such robust expansion strategies along with various sales and digital initiatives like product launches, loyalty program and mobile ordering service bode well. In fact, the company’s increased focus on establishing itself as a beverage leader should aid sales, going forward.
However, it is set to face tough competition from other food & beverages giants like McDonald’s Corporation MCD, Starbucks Corporation SBUX and YUM! Brands, Inc. YUM Taco Bell that intend to follow similar strategies.
Dunkin' Brands currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Yum! Brands, Inc. (YUM): Free Stock Analysis Report
Starbucks Corporation (SBUX): Free Stock Analysis Report
McDonald's Corporation (MCD): Free Stock Analysis Report
Dunkin' Brands Group, Inc. (DNKN): Free Stock Analysis Report
To read this article on Zacks.com click here.
