Time to Make The Money: Dunkin? Donuts Shares Surge in IPO
Shares of Dunkin Brands Group (Nasdaq: DNKN), the parent of Dunkin’ Donuts, are surging more than 40 percent on the company’s initial day of trading.
As of 12:30 p.m., shares are up in excess of $44/share, giving the company a market value of about $3-billion.
Morningstar senior analyst Joscelyn MacKay told Reuters: "The market's really going to like the growth story, Even though the Dunkin' Donuts brand has been around for 70 years, there's still great potential for the brand to increase its awareness around the United States."
The company reported generates 60 percent of its revenue from coffee sales.
Dunkin’ has plans to double the numbers of its stores to almost 7,000 over the next two decades.
According to consulting firm Brand Keys Inc., Dunkin’ Donuts’ customers have shown high loyalty among coffee drinkers, with an even higher rating than that of Starbucks.
© Copyright IBTimes 2024. All rights reserved.