Dunkin' Brands Group Inc

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DNKN : NASDAQ : Services
$48.17 -0.72 | -1.47%
Today's Range: 48.02 - 48.70
Avg. Daily Volume: 1,439,000
10/25/16 - 4:00 PM ET

Financial Analysis

DUNKIN' BRANDS GROUP INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. DUNKIN' BRANDS GROUP INC has average liquidity. Currently, the Quick Ratio is 1.28 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 153.34% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)207.1209.81
EBITDA ($mil)111.78107.2
EBIT ($mil)101.3395.87
Net Income ($mil)52.7146.22

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)340.96396.66
Total Assets ($mil)3145.63348.08
Total Debt ($mil)2431.552496.44
Equity ($mil)-167.23-66.01

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin82.6480.38
EBITDA Margin53.9751.09
Operating Margin48.9345.69
Sales Turnover0.260.24
Return on Assets4.144.97
Return on Equity0.00.0
Debt Q3 FY16 Q3 FY15
Current Ratio1.551.88
Interest Expense24.624.79
Interest Coverage4.123.87

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)91.7295.16
Div / share0.30.27
Book value / share-1.82-0.69
Institutional Own % n/a n/a
Avg Daily Volume1427566.01542280.0


BUY. This stock's P/E ratio indicates a premium compared to an average of 29.56 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 24.64. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, DUNKIN' BRANDS GROUP INC seems to be trading at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DNKN 35.02 Peers 29.56   DNKN 19.37 Peers 13.61

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

DNKN is trading at a premium to its peers.


Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

DNKN is trading at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
DNKN 20.32 Peers 25.37   DNKN 0.33 Peers 2.63

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

DNKN is trading at a discount to its peers.


Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

DNKN trades at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DNKN NM Peers 35.93   DNKN -15.57 Peers 33.71

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DNKN's P/B is negative making this valuation measure meaningless.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, DNKN is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DNKN 5.54 Peers 2.80   DNKN 2.07 Peers 6.81

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

DNKN is trading at a significant premium to its industry.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

DNKN significantly trails its peers on the basis of sales growth



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