Southern New Hampshire University
My home state is Illinois, home to probably some of the best food in the Midwest, but
while I tend to love my home states food I do have to give Massachusetts for coming up with one
of the best cheap donut places to go to being Dunkin' Donuts. Dunkin' Donuts is a fast food
chain that parent company is Dunkin' Brand Group Inc. which has several chains open around
the nation with the brands main source of revenue being their franchise fees and royalty income
Of course, it wouldn't be long before Dunkin would drop the Donut from its name that's been
around since the 1950's as their menu items started to expand to meet different types of pallets.
The last filings that could be found from Dunkin before they went private were during
February 24th of their 10k, July 30,2020 of their 8k, and August 5,2020 of their 10Q. The fiscal
report that was reported around this time that could be found was on December 28th, 2019, with
the current information that could be used to give insight into how the company was fairing. For
the current ratio they scored a 1.56 (Current Assets / Current Liabilities= $907301/$582426)
which is a good indicator that the company is able to handle its liabilities with the current cash
on hand they have and with the earnings that are being used efficiently. The same report also
shows the following which why Dunkin most likely went private to begin with, as return on
equity -41.16% (Net Income / Shareholders Equity= $242,024/ ($-588,010). This means that
Dunkin was unable to give back shareholders their money that was due on their liabilities yet in
that same report when it came to the return on their investments it show that 6.6% (Net Income)
Average Total Assets= $242,024/$3,688302.5). which allowed for them to make some good
money but not enough to cover what happened with the Shareholders who were probably getting
Southern New Hampshire University
Dunkin's gross profit margin comes in at 51.70% for the fiscal year of 2019 which was a
lot better than its 2018 margins of 48.94% which is an overall increase of both sales and revenue
for the company.
With the company going private dividends cannot be paid at all and most value that the
company had while being publicly traded around has dismissed. This tends to be the fate of a lot
of fast food companies who are chains around the nation as the percentage yield is only expected
to go higher each year without factoring external factors like a world wide pandemic. Covid 19
crippled several business during its emergence around the globe and none was spared from the
lockdowns and health safety crisis it caused especially in the food preparation industry.
SEC Filing | Dunkin Brands, Inc. (2020). 10-K Retrieved from
https://investor.dunkinbrands.com/node/15841/html/
https://www.dividend.com/stocks/consumer-discretionary/gaming-lodging-
restaurants/restaurants/dnkn-dunkin-brands/