Sunday Funday: Dunkin Brands

Who doesn’t enjoy a fattening donuts on the weekend? Probably those of you who have a ridiculous diet and wake up to a juice shake. More power to those of you that take your health too seriously, me and the majority of Americans will continue to enjoy our sugary morning wake up call. Haven’t you heard, “American Runs on Dunkin’?” Though the previous statement is merely an advertising campaign, the truth reverberates throughout the catchy phrase. American prides itself on its addiction to caffeine, in turn the profits of many companies are contrived from an American enjoying a cup of joe and a breakfast pastry. Dunkin’ still is quite new to the trading block, but has served those who believed in the story well thus far. With its growth potential in the western United States, it will likely continue to do well for investors.

With huge growth opportunities, America seems to be running westward with Dunkin’. As a frequenter of these fine establishments, I see where the desire and growth both sit. The high P/E ratio lends itself to be a growth stock, which it obviously is. As I spoke of in a recent post, betting on the American coffee and breakfast market has proven itself successful in the past and will prove itself into the future. With a lower price point than other meals, Americans are more likely to spend on breakfast than lunch or dinner. As we see the economy faltering and Americans pinching pennies again, a breakfast treat will continue to be the choice of many as they pack a lunch and make dinner at home. Look at the success McDonald’s has had capturing the breakfast market and imagine the continued success a company like Dunkin’ can have, as it is symbolic of breakfast. As long as Dunkin’ performs like it did last quarter, this will continue to be a great company to be behind. Either way you cut this donut, looking at it from a growth perspective or brand recognition, Dunkin’ repeatedly keeps the masses coming back for the next vanilla creme filled donut.

What is Sunday Funday?

Posted on by Young Gun in Sunday Funday Comments Off on Sunday Funday: Dunkin Brands