Dunkin’ Donuts US To Push Revenue Growth For Dunkin’ Brands

DNKN: Dunkin' Brands Group logo
Dunkin' Brands Group

Dunkin’ Brands’ (NASDAQ:DNKN),  whose stock is currently trading at around $81, generates its revenue primarily from the Dunkin’ Donuts US segment which is projected to account for 46.7% of total revenues in FY 2019. In this note we discuss the revenue segments of Dunkin’ Brands, their historical performance, and expected Total Revenue for FY 2019. You can look at our interactive dashboard analysis ~ Dunkin’ Brands Revenue: How does Dunkin’ Brands make money? ~ for more details. In addition, here is more Consumer Discretionary data.


Dunkin’ Brands Business Model:

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What Does Dunkin’ Brands offer?

  • Dunkin’ Brands is one of the world’s leading franchisors of quick service restaurants (“QSRs”) serving hot and cold coffee and baked goods, as well as hard serve ice cream.
  • They franchise restaurants under the Dunkin’ and Baskin-Robbins brands. With over 20,900 points of distribution in more than 60 countries worldwide, their portfolio has strong brand awareness in key markets.
  • They believe that a 100% franchised business model offers strategic and financial benefits. Because they generally do not own or operate restaurants, they are able to focus on menu innovation, marketing, franchisee coaching and support, and other initiatives to drive the overall success of the brand.
Dunkin’ Brands has 2 main brands:

Dunkin’ U.S.:

  • Dunkin’ is a leading U.S. QSR concept, and is the QSR leader in donut and bagel categories for servings. Dunkin’ is also a national QSR leader for breakfast sandwich servings. Since the late 1980s, Dunkin’ has transformed itself into a coffee and beverage-based concept, and is a national QSR leader in servings in the hot regular/decaf/flavored coffee category and the iced regular/decaf/flavored coffee category,

Baskin-Robbins U.S.:

  • Baskin-Robbins is the leading QSR chain in the U.S. for servings of hard-serve ice cream, according to CREST® data, and develops and sells a full range of frozen ice cream treats such as cones, cakes, sundaes, and frozen beverages

International operations:

  • The international business is primarily conducted via joint ventures and country or territorial license arrangements with “master franchisees,” who operate and sub-franchise the brand within their licensed areas. The international franchise system is predominantly located across Asia and the Middle East.

What Are The Alternatives?

  • Major competitors are companies like Starbucks, McDonald’s, KFC, Subway, and other food chains.

What Is The Basis of Competition?

  • Key competitive factors include the number and location of restaurants, quality and speed of service, attractiveness of facilities, effectiveness of advertising, marketing, and operational programs, price, demographic patterns and trends, consumer preferences and spending patterns, menu diversification, health or dietary preferences and perceptions, and new product development.


Revenue growth of about $73 million over two years:

  • Total Revenue has seen a steady growth from $1.2 billion in 2016 to $1.3 billion in 2018. Trefis estimates Total revenue to be around $1.4 billion in 2019.
  • Dunkin’ Donuts US revenues has fallen from $608 million in 2016 to $606.8 million in 2018 primarily due to a change in the presentation of financial statements. Overall we see a continuous increase in the number of outlets over the years. In 2019 expected revenue is $643.9 million.
  • Dunkin’ Donuts International had a small fall in 2017 in royalty share for the segment. Post that it has been growing both in terms of outlets and average revenue per outlet. In 2019 expected revenue is $23.3 million.
  • Baskin-Robbins US segment has remained relatively flat in terms of revenues and the metrics thereof. Revenues have been in the range of $47-49 million since 2016 and is expected to be $48.7 million in 2019.
  • Baskin-Robbins International segment also has been nearly flat across the last few years. The growth in outlets and average revenue per outlet is offset by decreasing royalty share. In 2019 expected revenue is $118.7 million.
  • Other Revenue has been increasing at a steady rate from $31.5 million in 2016 to $36.3 million in 2018. Trefis estimates revenue to be around $39.9 million in 2019.
  • The company started recognizing Advertising fees and related income separately in 2018. These are advertising fees paid on a weekly basis based on a percentage of franchisee gross sales as per the franchise agreements both in the US and internationally. Trefis estimates the same to be around $503.5 million in 2019.


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