Advertisement

Dunkin' shares hit all-time high after holding buyout talks

Dunkin' shares hit all-time high after holding buyout talks Photo: MGN Images/ Mike Mozart, CC BY 2.0.

The Associated Press
Created: October 26, 2020 10:41 AM

The Dunkin' doughnuts and coffee chain confirmed it's held talks to be taken private by a private equity firm, sending shares rocketing to an all-time high at the opening bell Monday.

Dunkin' Brands Group said it's in preliminary discussions with Inspire Brands, which also owns Arby's and Jimmy John's Sandwiches. In a prepared statement Sunday, Dunkin' said it was not yet certain a deal would be reached and would not comment further.

Advertisement

Inspire Brands said it had no comment Monday, but Dunkin' shares jumped 16% to $104.87.

Dunkin', based in Canton, Massachusetts, also owns the Baskin-Robbins ice cream chain. There are 13,000 Dunkin' stores and 8,000 Baskin-Robbins outlets worldwide.

KSTP's business news coverage

Both brands have significant history. Dunkin' was founded in 1950 in Quincy, Massachusetts. Baskin-Robbins — known for its promise of 31 flavors — was founded in 1945 in Glendale, California.

But the global pandemic has hurt sales. Dunkin' Brands revenue fell 20% in the second quarter, and the company said franchisees closed 200 restaurants permanently. Dunkin' Brands reported full-year sales of $1.4 billion in 2019, up 4% from the previous year.

Atlanta's Inspire Brands, which was founded in 2018, is quickly placed itself among the largest restaurant groups in the U.S. It also owns the Buffalo Wild Wings and Sonic burger chains, and has annual sales of more than $14 billion.

Dunkin' would give Inspire a spot in the breakfast category, which was the fastest-growing segment of the restaurant industry before the pandemic hit.

Inspire is part of the private equity company Roark Capital Group, also based in Atlanta. Roark also backs Focus Brands — the owner of Auntie Anne's Pretzels and Cinnabon — and CKE Restaurants, which owns the Carl's Jr. and Hardee's burger chains.


Copyright 2020 - KSTP-TV, LLC A Hubbard Broadcasting Company

Comment on Facebook
Advertisement

Gophers cancel Saturday’s battle for Paul Bunyan's Axe against Wisconsin

FBI arrests St. Paul shooting suspect in Chicago

Open Arms provides more than 1,800 meals to those battling illness this Thanksgiving

Man in custody on unrelated charge arrested in St. Paul homicide

COVID-19 in Wisconsin: Record-high 104 new deaths, 6,202 new cases

Advertisement