U.S. markets close in 36 minutes
  • S&P 500

    3,233.45
    -3.47 (-0.11%)
     
  • Dow 30

    26,717.77
    -45.36 (-0.17%)
     
  • Nasdaq

    10,622.30
    -10.69 (-0.10%)
     
  • Russell 2000

    1,453.33
    +1.87 (+0.13%)
     
  • Crude Oil

    40.16
    +0.23 (+0.58%)
     
  • Gold

    1,869.10
    +0.70 (+0.04%)
     
  • Silver

    23.13
    +0.02 (+0.11%)
     
  • EUR/USD

    1.1671
    +0.0010 (+0.08%)
     
  • 10-Yr Bond

    0.6660
    -0.0100 (-1.48%)
     
  • GBP/USD

    1.2736
    +0.0010 (+0.08%)
     
  • USD/JPY

    105.4200
    +0.0880 (+0.08%)
     
  • BTC-USD

    10,637.94
    +388.47 (+3.79%)
     
  • CMC Crypto 200

    216.69
    +7.75 (+3.71%)
     
  • FTSE 100

    5,822.78
    -76.48 (-1.30%)
     
  • Nikkei 225

    23,087.82
    -258.67 (-1.11%)
     

Dunkin' Brands Analyst Says Q2 Positives Outweigh The Negatives

Sanju Swamy

Dunkin Brands Group, Inc. (NASDAQ: DNKN) continues to perform well during the pandemic, although some bears are highlighting elevated expectations and unexpected store closures, according to KeyBanc Capital Markets.

The Dunkin’ Analyst: Eric Gonzalez reiterated an Overweight rating on Dunkin' Brands with a $78 price target. 

The Dunkin’ Thesis: Dunkin’s second-quarter positives far outweigh the negatives, and after Thursday's quarterly report, “we have even more conviction that these efforts are setting the chain up for future success,” Gonzalez said in a Thursday note. (See his track record here.)

The analyst named the following as key investment points for Dunkin’:

  • The pace of recovery in Dunkin’s U.S. segment is going well as store volumes approach normal levels. 

  • Drive-thru locations showed signs of growth despite tailwinds that benefited categories like pizza and hamburgers. 

  • Store closings have reflected the positive alignment between Dunkin’s management team and store owners and the possibility of unit growth. 

  • Enrollment in Dunkin’s DD-Perks program increased 110% in the second quarter, and digital orders increased 18% year-over-year overall. 

For 2020 and 2021, KeyBanc raised its EPS estimates for Dunkin’ to $2.62 and $3.08, respectively.

DNKN Price Action: Dunkin' Brands shares were up 0.55% at $69.03 at last check Friday. 

 

 

Latest Ratings for DNKN

Date

Firm

Action

From

To

Jul 2020

Credit Suisse

Maintains

Outperform

Jul 2020

Morgan Stanley

Maintains

Equal-Weight

Jul 2020

JP Morgan

Upgrades

Neutral

Overweight

View More Analyst Ratings for DNKN
View the Latest Analyst Ratings

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.