Dunkin' Brands (DNKN) Checks Suggest Continued U.S. Sales Momentum - Credit Suisse; PT to $57
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Credit Suisse analyst Jason West reiterated an Outperform rating and bumped his price target on Dunkin' Brands (NASDAQ: DNKN) to $57.00 (from $53.00) as U.S. franchise checks suggest continued sales momentum.
West commented, "Our checks suggest the Dunkin' US business has sustained the sales momentum that emerged in 3Q, driven by strength in Cold Brew, bfast sandwiches and easy compares. Among our contacts' stores, competition from convenience stores remains elevated but has not worsened. Further, DNKN’s pivot to higher-quality products that are more difficult for c-stores to replicate (e.g. Cold Brew) seems to be helping sales. In terms of cadence, our conversations indicate SSS have improved steadily since 3Q and most of our contacts have seen their strongest sales in recent weeks."
The firm is raising 4Q Dunkin' US SSS est. to +3.0% from +2.5% (consensus = +2.1%).
Shares of Dunkin' Brands closed at $53.76 yesterday.
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