How Much Is Dunkin' Donuts Worth?

High-end estimates find Dunkin' Brands could sell for $9.6 billion.
Publish date:

With stock estimates between $65 - $75, Dunkin' Brands (DNKN) - Get Report could be worth $9.6 billion if JAB Holding Co. moves forward with a takeover bid.

JAB already owns Krispy Kreme along with Keurig Green Mountain and with Dunkin', it could soon become a major competitor to Starbucks (SBUX) - Get Report

The takeout price range for Dunkin' Brands -- which owns coffee chain Dunkin' Donuts and ice cream brand Baskin-Robbins -- could be in the range of $65 to $75 a share, estimated BMO Capital Markets analyst Andrew Strelzik in a note today. At high-end of the range, Dunkin' would be valued at about $6.9 billion excluding long-term debt, a 36% premium to its current market cap. Assuming Dunkin's over $2.4 billion in long-term debt, JAB would need to write a check for roughly $9.3 billion to buy a business that boasts almost 20,000 restaurants worldwide, a growing digital presence and strong inroads into the supermarket space.

This article was written by a staff member of TheStreet.