(Dunkin Donuts IPO article updates an earlier version.)
CANTON, Mass. ( TheStreet) -- Dunkin' Donuts owner Dunkin' Brands is set to begin trading publicly on Wednesday and the IPO could fetch as much as $20 per share, but value investors may do better to look elsewhere for growth, according to one analyst.
"But how much it's worth and how much investors are willing to pay for it" will be up to individual investors, he said. It could be considered cheap for those who view Dunkin' Donuts' growth potential on par with restaurant gems like Chipotle Mexican Grill (CMG - Get Report), Panera Bread (PNRA - Get Report) or Buffalo Wild Wings (BWLD - Get Report), Yake added, but as a value investor the analyst prefers other names which he says have "superior growth prospects." Chief among them: AFC Enterprises (AFCE). Yake said the operator of Popeye's fast-food chicken restaurants can be bought at "much cheaper multiples than Dunkin' Donuts," though he maintained that he does not absolutely think Dunkin' Donuts is a bad investment at the expected IPO price.
"Investors may be right to pay [for pricey multiples of Chipotle, Panera or Buffalo Wild] because they're great companies, but I tend to be more a value investor," Yake said.