Why Dunkin’s year-to-date return is negative

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Dunkin’s year-to-date return

As of September 11, 2014, Dunkin’ Brands Group’s (DNKN) year-to-date (or YTD) return was -8.2%—compared to returns of 9.9% on the S&P 500 Index and 1.37% for the restaurant industry. In this part of the series, we’ll see how the $10,000 invested at the beginning of the year will pan out in terms of return on investment.


Until the first quarter, Dunkin’s return on investment was above S&P’s. However, beginning April 2014, Dunkin’ entered the negative return territory. Let’s look at what happened.

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First quarter results were disappointing. Dunkin’ Donuts U.S. same-store sales grew by only 0.5%. They were affected by severe weather conditions in U.S. Same-store sales for the remaining three segments—Dunkin’ Donuts International, Baskin-Robbins U.S., and Baskin-Robbins International—were also down compared to last year. Starbucks’ YTD return was flat at 0.26%. Tim Hortons’ YTD return was 41%—due to recent acquisition news. Click here to learn more.

The stock started trending upwards. On August 8, Barclays upgraded Dunkin’ to “overweight” from “equal-weight.” It increased the price target to $51 from $48. Barclays noted that Dunkin’s “long-term fundamentals are compelling.” The company also launched new products like dark roast coffee and almond milk.

Further reading

At Market Realist, we understand how companies have performed compared to their previous results and their peers. We publish earnings overviews every quarter.

To read more about Starbucks’ (SBUX)—which is a part of the Consumer Discretionary Select Sector SPDR Fund (XLY)YTD return, to see how investors reacted to McDonald’s (MCD) earnings results, or to learn what Tim Hortons (THI) is adding to its menu, please click on the respective links.

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