Is Dunkin’ Donuts’ US Segment 40%, 50%, Or 60% Of Dunkin’ Brands Total Revenue?

DNKN: Dunkin' Brands Group logo
Dunkin' Brands Group

Dunkin’ Donuts US segment is expected to contribute $673.4 million to Dunkin’ Brands 2019 revenues, making up 46.7% of Dunkin’ Brands’ (NASDAQ:DNKN) $1.4 billion in revenues for 2019. The advertising fees are 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. Advertising fees are likely to contribute $508.5 million, that is 36.5% of the $1.4 billion in total revenue expected in 2019. This Total revenue growth has been key to Dunkin’s 100% price appreciation during the last 3.5 years, further helped by a better valuation multiple. We discuss Dunkin’ Brands valuation analysis in full, separately.

Below we discuss Dunkin’ Brands’ business model, followed by sections that review past performance and expectations for Dunkin’ Brands revenue drivers, including number of outlets, average revenue, franchise/royalty fees, and competitive comparisons with Restaurant Brands, and McDonald’s. Please visit our interactive dashboard – Dunkin’ Brands Revenue: How does Dunkin’ Brands make money?


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Dunkin’ Brands Business Model

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’ 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. For how its revenue compares to its peers please visit our interactive dashboard – Dunkin’ Brands Revenue.


Revenue growth expected in 2019 and 2020 is primarily from improvement in the Dunkin’ Donuts US segment’s absolute growth. For detailed information regarding change in outlets, average revenue and franchise fees, please visit our interactive dashboard – Dunkin’ Brands Revenues.

  • Dunkin’ Donuts US Revenue has remained nearly flat in 2018 compared to 2016, but is expected to grow by 11% to around $673.9 million by 2020.
  • Dunkin’ Donuts International Revenue fell in 2018 to $22.3 million when compared to 2016, but is expected to grow by 8.9% to around $24.3 million by 2020.
  • Baskin-Robbins US Revenue has remained nearly flat in 2018 compared to 2016, but is expected to grow by 4.7% to around $49.6 million by 2020.
  • Baskin-Robbins International Revenue fell in 2018 to $115.2 million when compared to 2016, but is expected to grow by 7.4% to around $123.7 million by 2020.


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