We don't have the luxury of going back to the past or accelerating back to the future, but with perfect 20-20 hindsight, we know what is possible. Who would have dreamed this could happen to a fast-food restaurant stock? Well for starters, how about the brilliant visionaries who purchased MCD or Starbucks SBUX back when their stocks debuted on the public markets.
The filing stated, "On June 22, 2012, Andrew Balson, Anita Balaji and Todd Abbrecht each resigned from the Board of Directors (the "Board") of Dunkin' Brands Group, Inc. (the "Company"), including from their respective memberships on the committees of the Board. The resignations were not the result of any disagreement with the Company on any matter. "Each of Mr. Balson, Ms. Balaji and Mr. Abbrecht was originally appointed to the Board pursuant to an investor agreement between the Company and each of Bain Capital Partners, LLC, The Carlyle Group and Thomas H. Lee Partners, L.P. (collectively, the "Sponsors") entered into in 2006 and amended and restated in connection with the Company's IPO in July 2011. "Given the reduced ownership level of each Sponsor since our IPO, the Sponsors and the Board agreed that it was in the best interests of the Company to reposition the Board and maintain one representative of each Sponsor on the Board rather than two. "The Board accepted the resignations of Mr. Abbrecht, Ms. Balaji and Mr. Balson and intends to reduce the size of the Board to 8 members." In fact, 31% of the outstanding shares of DNKN are held by insiders and 5% owners. Total insider shares held over the past six months was reduced by 58.5% to 37.62 million shares. Institutions increased their ownership from the prior quarter to the latest quarter by 27.44%, to a total of 67%, according to data made available through Yahoo! Finance. The top two institutional investors are FMR LLC (Fidelity Investments) and TCG Holdings, a partnership owned by John Pesce, Mike Cochran and Wayne Desselle. TCG Holdings owns several organizations that specialize in employee benefits and investments for school districts and other public employers. The future of DNKN is very closely linked to the financial well-being of millions of investors all over the world and has become one of the darlings of major mutual funds and pensions. The company's first-quarter 2012 financial reports and its form 10-Q are a testimony to its growth and sound leadership. These can be found on its Web site's financials page. The chart below gives the less than 1-year historical view of the movement of DNKN stock.
Perhaps CMG had the same financial features in its first year of being a publicly traded company. The first-quarter 2012 financial report found on Dunkin's Web site is a must-read for potential investors and maps out its growth strategy. I pulled out the following quote from the report, which I found insightful: "The fundamentals of the business are extremely strong, and we remain laser-focused on our strategic imperatives -- operational excellence, brand-differentiating product innovation and world-class marketing," said Neil Moses, Dunkin' Brands Chief Financial Officer. "We remain committed to delivering on our financial targets for the year and to enhancing shareholder value." When the share price has a chance to cool down closer to the 100-day or 200-day moving average prices, I'd like to become a shareholder. Perhaps DNKN will be the next Chipotle Mexican Grill. At the time of publication, Courtenay had no positions in any securities mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
- 10 Fastest-Growing Drunk Nations
- Cramer's 'Mad Money" Recap: Curb Your Enthusiasm
- 8 Stocks Soaring on High Volume
- Chipotle Mexican Grill
- Dunkin Brands