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.
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.
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...
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?
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
7/30/2011 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 : The Simple Success of Dunkin' Donuts
yalanand
7/30/2011 11:19:49 AM
"That's why it makes sense that some of Dunkin's most rapid growth is coming from its affiliation with Hess Corp"
Noreen,
I totally agree with you. Dunkin's affiliation with Hess Corp has definitely played roled in Dunkin's growth. Do you think Dunkin's success will inspire other companies to install self-service counters?
The Simple Success of Dunkin' Donuts
PAW
7/30/2011 12:19:02 PM
Personally, I don't care for the coffee at Dunkin' Donuts and if I ever go to Starbucks (and this is rare), I like to order my plain old "regular" coffee as a small, medium, or large (with room for extra cream). I get a range of reactions from the "barista" as they usually translate my order into their vernacular. I actually have been purchasing "Tully's" (nasdaq TULY) coffee at the kiosk inside my local supermarket. It is much more drinkable than Dunkin' or Starbucks.
Re: Re : The Simple Success of Dunkin' Donuts
Noreen Seebacher
7/30/2011 4:35:25 PM
Quiznos, which has about 4000 restaurants in North America, is teaming up with Hess to open more than 50 Quiznos restaurants inside Hess locations in Florida. Quiznos began opening mini restaurants inside such filling stations and convenience stores as BP, Chevron and Circle K last year and now has 175. The Denver-based company plans to double that number next year and then double it again by the end of 2012, for a total of about 700 locations, while also opening about the same number of traditional Quiznos restaurants. McDonald's, Taco Bell and Subway have also put kiosks in filling stations.
Re: Re : The Simple Success of Dunkin' Donuts
Street Smart
7/30/2011 9:06:31 PM
I grew up in Southern California where there are lots of cars but not many Dunkin' Donuts. In fact, I had never seen one when I visited Cape Cod for the first time in the mid-1980's.
But right there in Falmouth, Massachusetts I just KNEW that DD was onto something BIG because they had a DRIVE THRU! I sat there watching everyone from the ferry day trippers to the local workmen picking up their donuts and it touched me to the depths of my LA heart!
They are also BRILLIANT at social media, by the way. Stay humble, Dunkin'. I raise a maple glazed to your success!
The blogs and comments posted on Investor Uprising do not reflect the views of Investor Uprising, PRNewswire, or its sponsors. Investor Uprising, PRNewswire, and its sponsors do not assume responsibility for any comments, claims, or opinions made by authors and bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
|
 |
Latest Blogs
Telecom-equipment maker Ciena is a stock trader’s dream, as long as the timing is correct.
The FTC is offering a $50,000 cash prize to the person or group that can come up with a solution to those annoying robocalls.
Akamai is in the middle of four significant tech trends.
John Malone of Liberty Media will be taking over Sirius XM satellite radio when the existing CEO Mel Karmazin steps down. What's it mean?
Demand for students of the humanities exists, despite widespread aspersions on the discipline.
IU Education
Resources to help you become a better investor
Investor Uprising on Twitter
25 market-moving companies we're tracking
|
Tweet This