Analysts say Dunkin continues to deal with self-inflicted wounds after the donut chain’s franchisees raised prices last year to offset wage pressures. Adding to Dunkin’s woes is McDonald’s launching an all-day breakfast menu in October, a decision that drove traffic to the Golden Arches in the fourth quarter.
“It’s hard for me to believe that Dunkin’ is going to be able to capture more share in that environment where the two biggest behemoths in the sector that compete against them are growing very rapidly,” said BTIG restaurant industry analyst Peter Saleh.
Dunkin’ Brands Group’s stock is down nearly 12 percent in the past 12 months, while in the same stretch Starbucks and McDonald’s are each up more than 30 percent. Dunkin’ has been underperforming the broad market and recently traded at its lowest forward price-to-earnings ratio since its 2011 IPO.
[“source-gsmarena”]