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Dunkin’ Brands’ Stock Performance Almost Doubles Since IPO

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Stock performance

Dunkin’ Brands (DNKN) stock performance has grown to $47 levels from $27 levels when it debuted on the stock exchange in 2011, returning ~75% on investment in the stock. This is a 15% compounded annual growth rate. Over the four-year period, EPS (earnings per share) has grown from $0.32 to $1.67 in 2014.

 

Over the same period, Starbucks (SBUX), which operates and competes during the breakfast daypart, has returned 150%. Krispy Kreme Doughnuts (KKD) returned 144%, and McDonald’s (MCD) returned 27%. Yum! Brands (YUM), which operates Pizza Hut, KFC, and Taco Bell, returned 59% over the four-year period.

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4Q14 earnings overview

Following is a brief overview of Dunkin’ Brands’ (DNKN) 4Q14 earnings.

  • Dunkin’ Brands reported an adjusted EPS of $0.42, which increased 7% year-over-year from $0.39.
  • Revenue grew 5% to $193 million, from $183 million year-over-year.
  • Gross margin increased to 86.78% from 86.49% as a percentage of sales, and net margins increased from 22.97% to 27.18%.

The Consumer Discretionary Select Sector SPDR ETF (XLY), which holds about 10% of restaurant stocks, holds 3% of Starbucks (SBUX) and 4% of McDonald’s (MCD).

Further reading

Be sure to read our Restaurants page to find out about other restaurant stocks.

You may also want to read company overviews and macro indicators for the restaurant industry in Market Realist’s series Investing in Domino’s Pizza – It’s All About the DoughBrinker International: Should Investors Be Interested in Chili’s and Maggiano’s?, and Analyzing Key Restaurant Indicators for February.

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