• Home
  • Southern New Hampshire University
  • Controllership ACC340
  • Financial Analysis of Dunkin' Brand Group Inc.

Financial Analysis of Dunkin' Brand Group Inc.

Living in New England I decided to choose a company that every New Englander is aware of. Dunkin' Brand Group Inc. main headquarters is in Massachusetts. Dunkin' Brand Group Inc. was founded in and took control of the beloved Dunkin' Donuts chain that originated back in the 1950's. Dunkin' Brand Group Inc. also owns and operates Baskin Robbins. Between both chains there are over 20,900 locations in over 60 countries. A key source of revenue that the Dunkin' Brand receives is in their franchise fees and royalty income. In 2019 Dunkin' Brand dropped "Donuts" from the famous chains' name. This had been the first time since the 1950's that the chains' name had been altered. (SEC Filings/ Dunkin' Brand, Inc., 2020) On February 24th Dunkin' filed their 10K for the years end. Dunkin' s latest 8K was filed on July 30,2020 and on August 5,2020 Dunkin' filed their 10Q. The fiscal year annual report for Dunkin' Brand Group Inc. ends on December 28th. The most recent annual report for Dunkin's fiscal year annual report is December 28th, 2019, it is broken down in this order. The current ratio is 1.56 (Current Assets / Current Liabilities= $907301/$582426). This method describes that the company has sufficient capital on hand that can pay all the company's current liabilities. On this same report Dunkin's return on assets is 6.6% (Net Income/ Average Total Assets= $242,024/$3,688302.5). Dunkin had a return on equity of -41.16% (Net Income / Shareholders Equity= $242,024/ ($-588,010). The shareholder's deficit for Dunkin reported is ($-588,010) Due to this, Dunkin' has total liabilities that exceed their total assets. Dunkin's gross profit margin comes in at 51.70% for the fiscal year of 2019. In the year prior at the end of the 2018 fiscal year, Dunkin's gross profit margin was 48.94%. This shows an increase from 2018 to 2019 that was due to an increase in Dunkin's revenue and cost of goods sold. Dunkin between 2018 and 2019 decreased their net long-term debt by the very low amount of $6410. Dunkin' saw between 2018 and 2019 their long-term liabilities increase by $295,000. The fiscal year ending 2018, Dunkin' had no operating lease liabilities. This changed in 2019 which makes the change in the long-term liability difference seen in the report. Dunkin's balance sheet does not specify inventory. Dunkin groups their inventory with the other current assets they possess. Dunkin lists its prepaid expenses and other current assets at a total of $ 50,611 for the year ending 2019. Dunkin' pays shareholders quarterly dividends. These are a distribution of profits from Dunkin' to its shareholders. Dunkin' paid dividends of $1.61 per share in 2019, $1.80 in the year 2018, and $1.39 in 2017. Shareholders are of major importance to Dunkin' Brand Group Inc. They help Dunkin' achieve and gain significant profitability and stable financial standing In the beginning of 2020 Dunkin' Brand Group Inc. was stable in price for stocks, in the months of March and April stocks fell due to the Covid-19 pandemic