DNKN - Dunkin' Brands: Down But Positioned For Growth Post Recession
Overview of Dunkin' Brands
The Dunkin' Brands Group (DNKN) is a franchisor of two quick-service restaurants; Dunkin' (formerly Dunkin' Donuts) and Baskin-Robbins. Their business model is asset-light with a 100% franchised model. The financials have been reliable and provide strong free cash flow conversion.
I have been a long-term investor in Dunkin' because of their ability to grow their dividend. They are successfully doing so by consistently achieving positive same-store sales coupled with growth opportunities west of the Mississippi.
However, the COVID-19 pandemic has created challenging times, especially for a company that requires