Why A CFO Transition Will Not Impact Dunkin’ Brands Significantly
Recently, Dunkin’ Brands (NASDAQ:DNKN) announced that its CFO Paul Carbone will leave the company effective April 21. The company has appointed Kate Jaspon, its Vice President, Finance and Treasurer as an interim CFO, while it searches for a permanent CFO among internal and external candidates. A change in top leadership can be unsettling, however Dunkin’ brands is handing over the baton to an 11-year veteran in the company who had lead it through several important transactions. Although this transition is for the interim, Jaspon has a chance to be appointed as a permanent CFO in the future. We believe this can lead to a smooth transition with no significant impact on the company. However, the company’s stock price witnessed a more than 5% decline in the last week and certain analysts believe that strong competition from McCafe can impact Dunkin’ Brands’ top line negatively. While the road ahead might be challenging for the new CFO we believe the transition should not impact Dunkin’ Brands significantly.
See full analysis for Dunkin’ Brands
Transition To A Company Veteran Likely To Be Smooth
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While Kate Jaspon has been appointed as the interim CFO of Dunkin’ Brands it is likely that she might be made permanent in the future. The company is evaluating internal and external candidates for this position and given her qualifications and knowledge, Kate Jaspon might be a good permanent fit. Through her current elevation, Kate Jaspon will report directly the company’s CEO and manage global financial planning and analysis, investor relations and competitive intelligence, in addition to her accounting and taxation responsibilities. As Dunkin’ works on a strategy to build a competitive edge against McCafe we believe a company veteran might be best suited to chalk out the path forward. The company is focusing on several strategic initiatives such as offering higher quality products and cleaner menu labels to its customers – moving away from synthetic colors to appeal to the health conscious millennial generation. It also launched mobile ordering on Google’s navigation app Waze where customers can use the “order ahead” feature to place orders and where users can find a Dunkin’ Brands outlet on their route and place orders before beginning their trip. These technology initiatives are also aimed towards attracting the younger consumers.
While Dunkin’ Brands is facing tough competition from players such as McCafe, we believe the change in CFO is not likely to impact the company significantly. More importantly, the company needs to move swiftly on its key strategic initiatives to ensure growth in revenues in the near term.
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