Market Overview

Dunkin' Brands Is 2018's First Go-Private Rumor; Shares Benefit

Share:
Dunkin' Brands Is 2018's First Go-Private Rumor; Shares Benefit

Dunkin Brands Group Inc (NASDAQ: DNKN) holds the title as 2018's unofficial first subject of a go-private rumor. Germany's JAB Holding, a private investment firm that has been active in buying American coffee companies and restaurants, is looking to continue the trend in 2018.

JAB's partner and chairman Bart Becth told a German newspaper it is looking to raise money from investors to fund further acquisitions, Reuters reported.

It is important to note that Dunkin Brands wasn't mentioned in the report, but that isn't stopping Wall Street speculation. Dunkin Brands was mentioned multiple times throughout 2017 as a potential acquisition target,

The Analyst

Maxim Group's Stephen Anderson maintains a Buy rating on Dunkin Brands with a price target boosted from $64 to $71.

The Thesis

Dunkin Brands, the parent company of Dunkin' Donuts and Baskin-Robbins, is one of the "strongest" quick service restaurant acquisition targets, Anderson said in a Tuesday note. (See the analyst's track record here.) 

An acquiring company could realize comp growth and geographic expansion opportunities in both the U.S. and international markets through Dunkin Brands, Anderson said. 

The coffee and snack segment of the restaurant industry boasts a higher growth profile than other segments, and Dunkin Brands also holds operates an "increasingly lucrative" licensing business, the analyst said. 

JAB Holdings is unlikely to pursue new deals until it is has "digested" recent acquisitions, the most recent of which include Panera Bread and Au Bon Pain, Anderson said. 

"We thus contend DNKN's best likehlihood for M&A will come from a multinational, multiconcept franchise operator." 

Price Action

Shares of Dunkin Brands hit a new 52-week high of $66.28 Tuesday morning and were up 1.71 percent at $65.57 at the time of publication. 

Related Links:

Are Restaurants Safe From The Amazon Effect?

Dunkin's CEO Talks Doughnuts And Coffee On National Doughnut Day

Latest Ratings for DNKN

DateFirmActionFromTo
Jul 2020Credit SuisseMaintainsOutperform
Jul 2020Morgan StanleyMaintainsEqual-Weight
Jul 2020JP MorganUpgradesNeutralOverweight

View More Analyst Ratings for DNKN
View the Latest Analyst Ratings

 

Related Articles (DNKN)

View Comments and Join the Discussion!

Posted-In: Analyst Color M&A News Price Target Reiteration Restaurants Analyst Ratings General Best of Benzinga

Latest Ratings

StockFirmActionPT
ZTSTruist SecuritiesMaintains160.0
WLKTruist SecuritiesMaintains60.0
UNVRTruist SecuritiesMaintains21.0
TRIPTruist SecuritiesMaintains25.0
TTDTruist SecuritiesMaintains450.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com