Investing.com - Dunkin' Brands Group, the parent of Dunkin' Donuts, rose on Monday after Wedbush upgraded its outlook on the coffee and baked-goods chain amid expectations for stronger U.S. growth.
Wedbush upgraded Dunkin’ Brands to outperform from neutral and raised its price target on the stock to $92 from $76, sending Dunkin' (NASDAQ:DNKN) up 2%.
The rosier outlook on Dunkin’ comes as the analysts hailed the company’s efforts to improve marketing and operations, both of which helped deliver sales growth.
Wedbush cited the popularity of Dunkin's Dunkin' Go2s breakfast menue, new espresso beverages, strength in the key morning market, improved operations/execution, and successful marketing.
The investment firm expects the growth to continue as it raised its outlook on Dunkin’s second-quarter same-store sales growth to 2% from 1% previously, citing “solid checks,” particularly among franchisees.
“Among Dunkin' franchisees, we have observed a noticeable uptick in positive expectations regarding the likelihood of ongoing top-line initiatives to sustain (same-store sales) growth beyond the near term,” Wedbush added.
Dunkin' Brands , up about 29% year to date, is expected to report earnings on July 25.