DNKN - Dunkin' Brands +17% after confirming takeover discussions with Inspire Brands

Analysts weigh in on the M&A talk between Dunkin Brands Group (DNKN) and Inspire Brands. Cowen's Andrew Charles thinks a takeover offer from Inspire Brands at $106.50 per share would be accepted by the company and approved by shareholders. "Based on our forecasts, $106.50/share represents 22.4x 2021E EV/EBITDA, or a 27% premium to quick service peers' average 17.7x, and nearly a turn more expensive than Domino's, the most expensive quick service restaurant with a far superior top-line profile. This far surpasses past Inspire acquisitions of public companies, including Sonic's 15x 2019E EV/EBITDA and Buffalo Wild Wings' 10x 2018E EV/EBITDA," writes Charles. In a contrary view, KeyBanc Capital Markets thinks Dunkin could hold out and attract another bidder. Shares of Dunkin' are up 16.57% premarket to $103.50.Dunkin' Brands one-year chart

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Dunkin' Brands +17% after confirming takeover discussions with Inspire Brands