Wall Street Runs On Dunkin', Sets IPO Terms

Dunkin' Brands Group Inc. announced the terms for its initial public offering this morning, though timing on the deal is still unclear. As per their

the company is going to sell 22.25 million shares at a price between $16 and $18 per share. It will trade on the NASDAQ under the ticker symbol "DNKN." Dunkin' Brands is likely to see strong investor attention, as the coffee stock group has been

(pun intended), and should benefit from strong investor sentiment in the group, and for IPOs in general. Here is an interesting risk that the company tells you about in the S-1, it's partnership with the U.S. military: "We have contracts with the U.S. military, including with the Army & Air Force Exchange Service and the Navy Exchange Service Command. These military contracts are predominantly between the U.S. military and Baskin-Robbins. We derive revenue from the arrangements provided for under these contracts mainly through the sale of ice cream to the U.S. military (rather than through royalties) for resale on base locations and in field operations. While revenues derived from arrangements with the U.S. military represented less than 2% of our total revenues and less than 6% of our international revenues for 2010, because these contracts are non-exclusive and cancellable with minimal notice and have no minimum purchase requirements, revenues attributable to these contracts may vary significantly year to year. Any changes in the U.S. military's domestic or international needs, or a decision by the U.S. military to use a different supplier, could result in lower revenues for us." The Massachusetts-based company sells coffee and baked goods under its Dunkin' Donuts brand, and also owns Baskin-Robbins ice cream. In 2006, the company was purchased from company Pernod Ricard S.A. for $2.4 billion in cash by Bain Capital, The Carlyle Group and Thomas H. Lee Partners. In the company's S-1, it said it will use the $400 million or so from the IPO to pay down debt and use it for general corporate purposes. J.P. Morgan Chase & Co., Barclays Capital Inc., Morgan Stanley, Bank of America Merrill Lynch and Goldman Sachs Group are all underwriting the IPO.