"What he [Chanos] doesn't get is that we have a beautiful [business] model, we have a brand that we constantly try to refresh based on what the consumer wants," Dunkin' Brands CEO Nigel Travis told TheStreet. "I find it hard to understand his thesis."
Dunkin' Brands Group had little time to celebrate its better than expected first-quarter in late April as headlines erupted that noted short-seller Jim Chanos had bet against the company. Chanos said in a TV interview that he has been short shares of Dunkin' and Burger King/Tim Horton's owner Restaurant Brands International (QSR - Get Report) for about a year.
Chanos' main concerns: valuations for the two fast-food heavyweights are too high and he thinks it's better for restaurants to own their own real estate, rather than franchise. The short-seller is also concerned about Dunkin's fundamentals and if company management is being too optimistic on its outlook for 2018.