Dunkin’ Brands Group is keeping the increased coffee consumption in mind; and is planning on going on an expansion spree
Dunkin’ Brands Group Inc. has decided to open 55 more outlets in Europe bringing the total outlets in the region to over 220. The Vice President of Global Franchising and business development, Grant Benson stated in a press release that the company sees an opportunity to grow in this market in the future. He added that the restaurant holdings company is searching for motivated and experienced people who they can hire at the franchises in the region.
Furthermore, he stated that the restaurant chain is looking to hire qualified individuals and well capitalized franchisee groups in certain regions of Europe that include Belgium, Netherlands, France, Norway, Finland and Turkey as the company sees potential growth in the market.
Additionally, the international restaurant giant posted better than expected financial results for fiscal year 2015, according to which the revenue generated during the year was reported to be $810.9 million and in comparison to the previous year, there was an 8.3% increase in sales. After making the earnings announcement, it increased its quarterly dividend by as much as 13%. Since there is a strong demand for coffee all over the world, in the press release it mentioned its mass expansion plan.
During the previous year, the company had a number of firsts in a few cities countries including Denmark, Poland, Iceland and Georgia – a total of 495 outlets were opened by Dunkin Brands in 2015. Furthermore, it opened a number of outlets towards the European side including Germany, Austria, United Kingdom, Sweden and Spain. Another addition to its expansion plan is the mast franchise deal that it has signed according to which it will be able to open as many as 35 outlets in Switzerland alone.
Due to the global increase in coffee consumption, the company is started to make the most of the opportunity with its coffee-cum-food outlets. As per an article that was published in The Wall Street Journal, the global demand for coffee in the next five years will go up by 25% according to the International Coffee Organization.
Dunkin’ Donuts is not the only restaurant in the business that plans to expand; Starbuck the largest coffee chain has also decided to start a food cum coffee café in New York. Dunkin Brands Group presently owns 11,700 outlets in over 43 countries. The fourth quarter earnings report revealed that the company has opened over 172 new locations worldwide – out of these 53 were international while 123 were in the United States.
Dunkin Stock is being traded at a stock price of $41.96 which indicates an increase of 2.52% from the previous trading session. During the current trading session, the stock of the restaurant holding company was seen hit a high end of $42.09 and a low end of $41.51 – furthermore the 52-week high share price reported by Dunkin’ Group was $56.79 and the one year low was reported to be $35.44. The market capitalization of the organization is presently at $3.92 billion and the earnings per share reported were $1.08.