قالب وردپرس درنا توس
Home / Business / Dunkin ‘will be in private mode – CNN

Dunkin ‘will be in private mode – CNN



Inspire Brands, a parent company backed by Roark Capital Group, a private equity firm, is buying Dunkin ‘, which also owns Baskin-Robbins. Inspire has owned 11,000 Arby’s, Buffalo Wild Wings, Sonic, Jimmy John’s and other restaurants.

Inspire, which will take on Dunkin’s debt during the deal, plans to buy back Dunkin ‘outstanding shares for $ 106.50 each. Shares were valued at $ 99.71 per share when the market closed on Friday.

Dunkin ‘and Baskin-Robbins will be “complementary” to Inspire’s portfolio, Inspire CEO Paul Brown said in a statement announcing the deal late on Friday. Through two brands, he notes, Inspire will reach international customers and more than 1

5 million loyalty program members, among other things.

The acquisitions would almost triple the size of Inspire: Dunkin ‘has more than 12,500 locations and Baskin-Robbins has nearly 8,000.

Dunkin 'will be in private mode.

Dunkin ‘CEO Dave Hoffman said in a statement that the deal will “deliver meaningful value to shareholders” and that he hopes it will drive growth for franchise operators. .

“The acquisition makes sense because it gives Inspire a longstanding national brand with Dunkin ‘,” BTIG restaurant analyst Peter Saleh wrote in a post-news-published note. about Dunkin ‘in talks with Inspire about a week ago. With Dunkin (DNKN)‘, Saleh said, Inspire’s portfolio will include a chain of serving customers in the morning.
In recent years, Dunkin ‘has put an emphasis on its coffee. In 2018, it dropped the name “Donuts” and has since invested in a new espresso machine and coffee making facility. It also tested new breakfast dishes, including a plant-based sausage sandwich.
Before the pandemic, breakfast was one of the few growing industries in the fast food sector. But now, sales of breakfast food are declining due to disruptions to morning commute. Many people who work from home also eat breakfast and have coffee at home. In the three months ending June 27, sales at Dunkin ‘US stores that opened for at least a year fell nearly 19%.

But sales have improved. Over the next three months, same-store sales at US Dunkin ‘stores increased by 0.9%. They improved from month to month in the quarter, the company said.

To help turn the sales around, Dunkin ‘took a few quick turns. It adds foods, such as bagels stuffed with cream cheese, that will attract customers who visit stores in the afternoon. It also started serving an autumn menu earlier this year and partnered with TikTok star Charli D’Amelio in an effort for young customers. That silver case paid off: When Charli’s promotion launched, Dunkin ‘hit a daily active app user record.

And with indie and local coffee shops struggling, larger chains like Dunkin ‘could dive in to steal market share or grow their mark.

“Dunkin ‘is thriving in the COVID world,” said Scott Murphy, president of Dunkin’ Americas, during a call to discuss the company’s third-quarter results. “We are very excited about the future.”

The company has been privately owned before. Dunkin ‘Donuts and Baskin-Robbins were sold by Pernod Ricard SA to three private equity firms including Bain Capital, Carlyle Group, and Thomas H. Lee Partners for $ 2.4 billion in 2005. The company was went public in 2011.

– CNN Business’ Jazmin Goodwin contributed to this report.


Source link