Do Hedge Funds Agree with Mr. Market as these Stocks Fall on Weak Outlook?

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Meanwhile, Dunkin Brands Group Inc (NASDAQ:DNKN)’s stock has dropped by a substantial 10% as it reported light guidance during the analyst day. The firm said that it expects earnings per share to be in the range of $1.87 to $1.91 for 2015, which is below the consensus estimate of $1.92. The company also forecasted revenue growth between 6% and 8% for the full fiscal year. In the third quarter, it said, same-store sales for locations, open for at least one year, are expected to grow 1.1%. For the full year, it said it expects same-store sales to grow 1% to 3% for both Dunkin’ Donuts and Baskin-Robbins stores. Dunkin’ Donuts same-store sales were expected by analysts to grow by 3.32% and 2.7% for Baskin-Robbins. Moreover, the firm announced plans to close 100 Dunkin’ Donuts stores by the end of the next year.

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Nonetheless, Insider Monkey’s data show that hedge funds were bullish on Dunkin Brands Group Inc (NASDAQ:DNKN) at the end of the second quarter. There were 15 hedge funds long Dunkin Brands at the end of the quarter, down by five from the end of March, and the value of their stakes fell by 22% to $331.8 million, despite an over 15% appreciation of the stock. The collective holdings of hedge funds were equal to 6.30% of Dunkin Brands. Eashwar Krishnan’s Tybourne Capital Management owned 2.24 million Dunkin Brands shares at the end of June, up by 36% quarter-over-quarter. Brett Barakett’s Tremblant Capital reduced its stake by 6% to about 1.09 million shares.

Disclosure: None

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