Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, November 6, 2020

Article Excerpt

DUNKIN’ BRANDS GROUP, $106.11, symbol DNKN on Nasdaq, is one of the world’s leading franchisors of quick-service restaurants: 12,900-plus Dunkin’ restaurants and 8,000 Baskin-Robbins locations. Those outlets are spread across 60 countries. On October 30, 2020, Dunkin Brands’ agreed to an $11.3 billion takeover offer from Inspire Brands, the private equity owner of fast-food brands such as Arby’s, Rusty Taco, Jimmy John’s, Buffalo Wild Wings and Sonic Drive-In. Both Dunkin’ and Baskin-Robbins will operate as distinct brands within the Inspire organization. That buyer currently has more than 11,000 restaurants worldwide. The addition of Dunkin’ Brands will add 15 million loyalty members to Inspire’s current 10 million members. In the quarter ended September 26, 2020, Dunkin Brands’ revenue increased 1.6% to $361.5 million from $355.9 million a year earlier. Sales at Dunkin’ and Baskin-Robbins improved from their lockdown lows, boosted by strong demand for curbside pickup, drive-thru and delivery options. Excluding one-time items, the company earned $77.3 million, or $0.93, in the latest quarter. That…