Business overview: An investor's guide to Dunkin' Brands Group

Business overview: An investor's guide to Dunkin' Brands Group (Part 1 of 10)

A new leaf: Why Dunkin’ Brands is a strong and growing player

Quick-service restaurants

Dunkin’ Brands Group is a franchisor of quick-service restaurants, serving hot and cold coffee and baked goods in addition to ice cream. It’s a strong, growing player in these segments, operating under its two primary brands: Dunkin’ Donuts and Baskin-Robbins. The Dunkin’ Donuts brand is the primary source of the company’s revenues. It sells coffee, donuts, muffins, bagels, and breakfast sandwiches to end consumers.

500th store picEnlarge Graph

Dunkin’ Donuts primarily competes with a few key players within the coffee retail industry. The most widely acknowledged competitor is the Washington-based large-scale premium coffee retailer Starbucks (SBUX). Other less recognized brands include quick-service restaurants McDonald’s (MCD) as well as Krispy Kreme (KKD), which specialize in breakfast offerings.

The Baskin-Robbins brand includes hard-serve ice cream, soft-serve ice cream, frozen yogurt, and various dessert-oriented beverages. It competes with other ice cream brands and stores such as Edy’s or Ben & Jerry’s and higher-quality ice cream products like Haagen-Daas. A spinoff in 2005 of the Dunkin’ Brands Group allowed this company to continue to grow under the wing of various private equity firms. As of the conclusion of FY2012, The Dunkin’ Brands Group. had 9,734 locations in the United States and 7,690 internationally. The company is publishing its form 10-K for FY2013 on February 6, 2014.


In December 2005, French distilled spirits producer Pernod Ricard (which was the previous owner of Dunkin’ Brands) announced its plans to sell the Dunkin’ Group. During this time, Pernod Ricard acquired a larger English quick-service restaurant business and spirits producer, Allied Domecq. A slew of private equity firms—including Bain Capital, the Carlyle Group, and Thomas H. Lee Group—purchased the brands for roughly $2.5 billion. Between 2005 and late 2011, these firms used large amounts of debt to focus on domestic expansion and grow brand awareness via the franchise model. These firms then listed the company as public under its current ticker in August 2011, with an initial public offering. As of 2012, Dunkin Brands Group is an independent entity, headquartered in Canton, Massachusetts.

The Realist Discussions

  • Ronkzar

    Imagine how well they would do with donuts cooked on- premises

  • Queen

    Their donuts suck in comparison to our local bakery.

    • Vincent Regan

      They used to be very good year ago

  • Nan F.

    the only thing that I find good about DD is in NYC after hours, they give out all their doughnuts to the homeless so they have something to eat at night. they also give out cups of coffee to the homeless as well. NY is the ONLY State that I know of, that has this law, to where no restaurants are allowed to throw away their foods at closing time. They have to give it all away to the homeless. It really helps to keep our people out there in the hot or cold fed.

  • Sam


  • Art Mitsias

    as long as its edible people will buy diff dd and sb for coffee and is about two bucks

    • crustyone

      It’s tasty too.

  • Fabio

    Yeah right. Another banksta trying to dump damaged good off on ma and pa. ????

  • Randy

    I don’t see in the long term how donuts and ice cream are going to survive as calories are going to be mandatory on all quick serve food items. It will be adapt or go.

    • crustyone

      Such products don’t conform to the Mooch’s strict dietary guidelines.

  • Vincent Regan

    How about now days and send the donuts in frozen I guess they can’t trust that donut man to be there every night