- Dunkin' Donuts U.S. comparable store sales growth of 1.7% Added 108 net new restaurants worldwide including 78 net new Dunkin' Donuts in the U.S. Adjusted operating income increased 12.2% Adjusted operating income margin expanded 240 basis points to 43.7% Adjusted EPS increased 16.0% to $0.29
It appears the donut and coffee business has been booming the past year. For the sake of comparison, KKD is selling at almost 20 times forward (one-year) earnings and has a price-to-earnings-to-growth (PEG) ratio of a modest 0.88. DNKN stock is selling at over 22 times forward earnings with a PEG of 1.71, almost twice that of KKD's which suggests its shares are more highly valued. At $40 a share DNKN's dividend yield is 1.9%. KKD doesn't pay a dividend yet. KKD did open some stores in India, which should be a profitable move since "sweets" are very popular there. But, let's face it, KKD is the small fry in the comparison, with a market cap of less than $886 million. DNKN's market cap is over four times larger at $4.29 billion. So the great donut debate continues. At the time of publication the author had no position in any of the stocks mentioned. . Follow @m8a2r1 This article was written by an independent contributor, separate from TheStreet's regular news coverage.