Re: Dunkin" has good coffee, but...
Phoenix
7/30/2011 3:40:23 AM
Aha the nostalgic memories associated with something. I know the feeling it is one of the main things organizations rely on to keep brand loyalty. This is an intangible asset that we cannot really put a price on. When we think about the value of Dunkin's stock this is another aspect we have to consider.
Re: Dunkin" has good coffee, but...
TelecomFreq
7/29/2011 11:56:12 PM
I grew up in Rhode Island where there is all but a Dunkin on every corner. There is a 5 mile stretch of road that has 7 of them, not counting the ones in the gas stations on that road.
If they can keep even a quarter of that level outside the northeast they will be in good shape. I know when I go back to visit RI it's one of the places I stop.
Re: Dunkin" has good coffee, but...
Phoenix
7/29/2011 1:35:14 PM
The initial investors would most probably feel they bought a good stock since it's value increased in such a short time. I guess that could be the reason why the shares were priced low.
And Noreen you are right when I need my caffeine fix in the morning I want it quick. Lingering in a coffee shop tasting and listening to music... Well who actually has the time to do all that?
More and more signs of Deflation...
back2basicz
7/29/2011 1:31:54 PM
Noreen,
The very fact that Dunkin reported excellent sales during the downturn shows the power and sophistication of the model as people start to trade down and trade down with a vengenance in these deflationary times.
Wherever people can they choose to Save money,not knowing if their next paycheck is coming or not.
Regards
Ashish.
Re: Dunkin" has good coffee, but...
ProfR
7/29/2011 9:49:12 AM
Yes, I agree that this happens a lot with IPOs - they come out at a low price so the initial investors can make money.
On the Dunkin concept, another thing is that they price the coffee at an affordable level. I also like the concept of having both the ice cream and coffee in the same store. In the northeast US, ice cream sells best in the summer. Ice cream only stores have a difficult time making money in the winter. In New York, several of the Dunkin's also offer Baskin and Robins ice cream.
Dunkin" has good coffee, but...
tokyogai
7/29/2011 9:08:32 AM
I agree with the assessment on the coffee and the formula. What disturbs me about this IPO is that the price was held dwon by the equity investors so they can exercise their opitons with a good profit and that the company has more debt than I would like at this point. As for the product- it really does hold up in trying times and the formula is simple, if not effective.
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