Dunkin’ Donuts USA and Canada president Paul Twohig said the company was disappointed with US sales and that it is working on improving its menu as a way to boost sales.
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Dunkin’ Brands shares tumbled by as much as 11% in trading on Thursday morning after the company provided sales guidance below what analysts were expecting. That’s the lowest the shares have traded since early January. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and thirteen have issued a buy rating to the company. The company squashed a delivery agreement between the service Foodler and one of its Boston franchisees past year, according to Boston.com. (NASDAQ:DNKN) most recently posted quarterly earnings of $0.5 per share for their fiscal period which closed on 2015-06-30. In the prior year, the company paid out $0.265 to stock owners, a difference of 21.0526% year over year.
A few analysts have also expressed concerns about promotional gimmicks, such as this week’s National Coffee Day. Dunkin’ Brands Group, Inc. now has an average broker rating of 2.05. Williams Capital increased their target price on shares of Dunkin Brands Group from $55.00 to $62.00 and gave the stock a buy rating in a report on Wednesday, July 29th. The Organization operates business through four segments: Dunkin’ Donuts-U.S., Dunkin’ Donuts worldwide, Baskin Robbins global and Baskin-Robbins-U.S. Dunkin’ Donuts-U.S. section is a United States QSR concept and marketplaces donut and bagel types for helpings.
Dunkin’ Donuts is facing more competition from fast-food chains, such as Taco Bell, that are now selling breakfast fare.
The company also maintained its full-year forecast of adjusted earnings of US$1.87 (RM8.23)-US$1.91 per share, said an investor day presentation.
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Yet another factor the company claims is influencing its plans is the sharp hike in commodity prices, such as the rise in egg prices due to the USA avian flue outbreak.
