In order to strengthen its footprint in the international market, the world's most sought-after coffee and baked goods restaurant chain, Dunkin' Donuts brand, part of Dunkin' Brands Group, Inc. (DNKN), has decided to set foot in Turkey.
Dunkin’ Donuts is looking for efficient and experienced professionals to develop a total of 100 restaurants over the next 10 years across Turkey. The company will be expanding in the country by forming franchise agreements.
The restaurateur is primarily focusing on opening its outlets in the country’s most potential markets including Istanbul, Ankara, Izmir, Bursa and Adana. The first Dunkin’ Donuts restaurant is expected to come up in early 2015.
Emerging growth prospects and increasing purchasing power of the residents make Turkey a lucrative investment proposition for Dunkin’. Additionally, under-penetration of quick-service restaurants in Turkey has influenced the restaurateur’s decision to enter the country.
Dunkin', boasting more than 10,500 restaurants across 31 countries, has been concentrating on international expansion for quite some time. The company has made its presence felt at several international locations like India, Guatemala and Vietnam.
In Sep 2013, Dunkin' Donuts declared its decision to re-enter the U.K. market. This Zacks Rank #3 (Hold) company recently inked a deal with two franchise groups – The Court Group and DDMG Ltd. – to set up 50 Dunkin' Donuts restaurants in Greater London over the next five years.
Another U.S.-based restaurateur, Krispy Kreme Doughnuts (KKD), also ventured into the Turkish market with similar offerings in 2009.
Other Stocks to Consider
Other players in the restaurant industry that look attractive at the current levels include Jack in the Box Inc. (JACK) and Domino's Pizza, Inc. (DPZ). All these restaurateurs carry a Zacks Rank #2 (Buy).