Why It’s Time to Buy Dunkin Brands Group Inc (DNKN)

Its new Egg White Delight has delighted health conscious diners, while the new Bacon Habanero Ranch Quarter Pounder appeals to bacon lovers.

Expected soon are “shaker fries,” following solid success in Asia. The concept is simple: a small bag of fries and a packet of special seasoning (think zesty ranch, garlic, cheese, etc. etc.) and shake.

The fast-food king just announced global comparable sales rose 2.6%. The strongest growth came from the U.S., where breakfast items indeed drove growth.

The company has whopping $100 billion market cap and shares yield a hearty 3.09%. Goldman Sachs has a neutral on the stock with a price target of $106, reflecting a potential 6% upside.

Dunkin’ is America’s all-day everyday favorite

Dunkin Brands Group Inc (NASDAQ:DNKN)’ looks poised to continue to shake up and wake up customers with new products, new launches, new locations and profits.

The chain enjoys an extremely loyal following. Service is swift, stores are clean and prices are competitive with McDonald’s Corporation (NYSE:MCD) and less expensive than Starbucks’.

Founded in 1950, Dunkin’ Donuts is America’s favorite all-day, everyday stop for coffee and baked good. It’s the market leader in the hot, regular, decaf, flavor, and iced coffee category. Every day, on average, Dunkin Brands Group Inc (NASDAQ:DNKN)’ sells more than 30 cups of brewed coffee each second. Every year it pours 1.5 billion cups.

For the full-year of 2012, Dunkin’ Donuts sales amounted to $6.9 billion. New initiatives should jolt sales further this year.

The company has a solid market cap of $4.71 billion.

Daily volume is robust. Over the last 30 days, 649,733-992,631 shares changed hands.

Institutions are big fans, holding 95% of the company’s 106.27 million outstanding shares.

The company pays a saccharine $0.19 per share quarterly dividend, giving the stock a tempting 1.72% yield. At last check, shares were trading at a year high.

Dollars to donuts, Dunkin’ Donuts shares look like a buy.

The article Why It’s Time to Buy Dunkin’ Dounts originally appeared on Fool.com is written by Diane Alter.

Diane Alter has no position in any stocks mentioned. The Motley Fool recommends McDonald’s and Starbucks. The Motley Fool owns shares of McDonald’s and Starbucks. Diane is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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