Dunkin’

Dunkin’ Brand Group Inc.

Gregory Strapach

Arizona State University

OGL 260-Module 3

November 8, 2019
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Dunkin is one of Starbuck’s main competitors and as such it is natural, I

would like to learn more about them. My time at Starbucks has allowed me to analyze

many profit and loss statements but I have never had the chance to look at things such

as; cash flow, history, and business plans for the future. Honestly looking at Dunkin’s

numbers I was very impressed with their performance over the last couple of years. It’s

easy to think of them as a smaller player in the coffee game but that is not their target

market.

After reading through their companies 10-K it became very evident that Dunkin is

focused more on the breakfast segment as a whole and not so much the coffee portion.

While they still provide a number of caffeinated beverages their primary focus is on their

food assortment of donuts and sandwiches. In this paper, I will take a brief look at

Dunkin’s financials and we will discuss briefly their plans for the future. Which is looking

bright.

Diving into the companies 10-K I quickly realized that the company itself falls

under Dunkin Brands Group Inc. This was a shock to me because I have always

thought of Dunkin as a single entity. In reality it is a brand that contains two Quick

Service Restaurants (QSR), Dunkin and Baskin-Robbins. Both combine to make up the

Group’s 10-K.

Dunkin Brands Group Inc has over 20,900 points of distribution worldwide in

more than 60 countries (2019, p. 4). As of 12/29/2018 Dunkin Brands reported a net

income of over 229 (2019 p. 65) million dollars with gross profits reaching 371 million

dollars (2019, p. 85) Dunkin Brands has high liquidity in their assets primarily due to the

fact that they are 100% franchised (2019, p. 4) and is able to pay back short term debt
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with the cash from its franchisees. In addition, Dunkin Brands Group Inc listed its

current assets at 399 million dollars with liabilities listed at 143 million dollars. This

makes for a strong working capital of about 256 million dollars.

The company’s cash flow remains strong which positions it to be very competitive

with its future projects. Primarily focusing on store development, opening new

locations, and advertising, Dunkin Brands Group Inc is full speed ahead with

development. Their take on what it means to be a QSR in today’s markets is truly

inspiring. With bright and vibrant colors to attract new customers in and an assortment

of donuts and sandwiches that keeps people coming back, their future looks very

strong.

Maintaining a competitive edge means Dunkin Brands must think outside the box

with advertising. Utilizing various platforms that include; billboards, television, radio and

social media, Dunkin often times beats its competitors to the punch. Add campaigns like

their Pumpkin at Dunkin saw huge success in the US launching just weeks before

Starbucks. With continued vigor Dunkin can continue to grow and spread worldwide

solidifying its top spot in the QSR category.

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References

(2019, February 27). Dunkin’ Brand Group, Inc http://investor.dunkinbrands.com/static-

files/d010c975-a180-40c3-8ae0-40f687a78212