Dunkin' Donuts Grows in Virginia - Analyst Blog
12 December 2013 - 6:00AM
Zacks
Dunkin’ Donuts, a well-known brand
of Dunkin' Brands Group, Inc. (DNKN), recently
unveiled an outlet in Charlottesville, Virginia in association with
its franchise partner, Norson Inc.
The new outlet also boasts a
“drive-thru” facility to cater to busy customers travelling by
road. The strategic positioning of the restaurant at the 305
Rivanna Plaza Drive near the Kegler's bowling alley coupled with
its contemporary ambience will likely drive sales.
Focus on expansion being very
important with Dunkin', management finds the fast-growing markets
in Virginia to be particularly attractive. Currently, the company
operates 11 locations under the Dunkin’ Donuts brand in the
state.
The restaurant industry in Virginia
acts as a driving force for the U.S. economy. Per the National
Restaurant Association, the state’s emerging restaurant industry
will generate total revenue of nearly $13.9 billion in 2013 which
justifies the company’s decision to expand in the state.
The restaurateur has been actively
expanding its domestic portfolio and intends to double it in the
next 20 years. In the past few years, the restaurateur has signed
several single and multi-unit development agreements with
franchisees in order to seize growth opportunities and cater to
consumer needs in individual markets. In the last month, the
company penned a multi-unit deal with a new franchisee — JP Foods,
LLC — to open 12 Dunkin' Donuts restaurants in Memphis, Tennessee
over the next seven years.
To cater to the various
market-specific needs, this Zacks Rank #3 (Hold) company has
undertaken a series of initiatives such as flexible concepts for
any real estate format including free-standing restaurants,
end-caps and in-line sites, menu innovation and improvements in
food presentation.
Investors interested in the
restaurant industry may consider stocks like Buffalo Wild
Wings Inc. (BWLD), DineEquity, Inc. (DIN)
and Darden Cracker Barrel Old Country Store, Inc.
(CBRL). All these companies hold a Zacks Rank #2 (Buy).
BUFFALO WLD WNG (BWLD): Free Stock Analysis Report
CRACKER BARREL (CBRL): Free Stock Analysis Report
DINEEQUITY INC (DIN): Free Stock Analysis Report
DUNKIN BRANDS (DNKN): Free Stock Analysis Report
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