Don’t forget about Donuts
While the street was diving into Starbucks Corporation (NASDAQ:SBUX)’ spectacular quarter, Dunkin Brands Group Inc (NASDAQ:DNKN), the owner of everyone’s favorite doughnut company Dunkin’ Donuts, reported better-than-anticipated quarterly results. The company reported $0.41 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.40 by $0.01. Revenue, however, did fall short; Dunkin’ generated $182.5 million in the quarter compared to the consensus estimate of $183.8 million.
On a year-over-year basis, the results were good. Earnings and revenue grew by 24.2% and 5.9%, respectively. Over the coming years, the company has bold expansion plans domestically and internationally. Dunkin Brands Group Inc (NASDAQ:DNKN) is looking to offer its innovative menu to the Western U.S., something I am truly looking forward to.
Spending time on the East Coast for college, I frequent my local spots almost daily; everyone needs a vice after all. In addition to the growth here at home, Dunkin Brands Group Inc (NASDAQ:DNKN) is looking to makes dents in India and Asia. Going forward, I would bless an investment in the company as it have proven successful in differentiating itself through menu innovation across the globe.
Coffee may be hot, but these coffee companies are steaming. Starbucks Corporation (NASDAQ:SBUX) is firing on all cylinders here at home and abroad. Increasing revenue streams through partnerships with leaders such as Dannon bode well for diversified growth in the decades ahead. Dunkin Brands Group Inc (NASDAQ:DNKN) quietly reported a good quarter, yet remains in a different league from its coffee competitor Starbucks. At the end of the day, you need to ask what do I want to own? I remain long Starbucks even with the great run to the upside already this year. Any pullback would be a gift from weak hands as far as I’m concerned.
Nathaniel Matherson has long position in Starbucks. The Motley Fool recommends Starbucks. The Motley Fool owns shares of Starbucks.
The article The Coffee’s Hot, But the Stocks Are Steaming originally appeared on Fool.com.
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