Prime storefronts left empty by failed businesses. As the coronavirus permanently shutters some small businesses, big fast-food brands like Domino's Pizza, Chipotle and Wendy's that were doing well before the crisis want to grow - or continue pre-existing expansion plans - after the pandemic subsides. David Deno, chief executive officer of Outback Steakhouse parent company Bloomin' Brands, told Reuters in an interview that "I don't mean to wish ill on anybody, but there's going to be real estate opportunities," for new stores or relocations to areas with "better visibility, better access and better parking."
Beyond founder and CEO Ethan Brown talks with Yahoo Finance immediately following the company's latest earnings report.
As more Americans rely on restaurant delivery, Dunkin' continues to step up for its customers with new options for getting their coffee, espresso, baked goods, and breakfast sandwiches delivered right to their doorstep. As part of the brand's efforts to make it easier and more convenient for Americans to run on Dunkin' without leaving home, Dunkin' is expanding its delivery options to include Uber Eats. With this new partnership, Dunkin' is now available for delivery through Uber Eats at over 1,700 restaurants, with more than 4,000 total locations nationwide to offer the service by the end of May.
All across America, there are young people making big differences in their communities, proving that you don't have to be grown-up to step up. From care package creators, to face shield printers, and nature photography curators, Baskin-Robbins' new "Pint-Sized Heroes" charitable program celebrates the extraordinary, passionate, creative, and thoughtful young people who are giving back to their communities during the pandemic.
It has been a difficult year for restaurant stocks to say the least. Thanks to the novel coronavirus, the sector has been absolutely walloped. Even with the market generally recovering strongly, most of the restaurant names remain down in the dumps. Dunkin' Brands (NASDAQ:DNKN) stock, however, is one exception.Source: JStone / Shutterstock.com Shares fell from $75 to $38 during the crash, but are back up to $65 now. And with good reason: Dunkin' should get back to its old highs as investors realize it is one of the best-positioned restaurants in this new economic environment. Why would that be? First, let me tell you a story.Because my youngest son was born in New York and spent the first eight years of his life there, he "grew up" with Dunkin' Donuts. Soon, he became one of the restaurant chain's biggest fans. Almost every weekend, we'd drive to the local Dunkin' shop to pick up a dozen doughnuts, along with a box of doughnut holes.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut then we moved to California and left the East Coast Dunkin' behind. My son never really got over it. Every time I traveled to the East Coast for business, he'd ask me to bring back a doughnut or two, if I could. And if I couldn't, he'd ask me to at least take a photo of a Dunkin' Donuts shop and send it to him. * 7 Dow Jones Stocks to Buy With Fortress-Like Balance Sheets That's a powerful example of "brand value," and that's one of the traits that will enable Dunkin' Brands to thrive in the post-Covid-19 world. And that tradition will continue well into the next generation and beyond. Plenty of Room for Brand GrowthWhile many East Coasters, like my son, are huge fans of Dunkin' Donuts, much of the country isn't so familiar with Dunkin' yet. The company launched its initial public offering in 2011 in part to raise funds and enhance its public stature as part of a big expansion push across the United States. That is well under way now, as the company has found new franchisees outside of its core East Coast market.There's also a large overseas opportunity for Dunkin' Donuts. International revenues account for just 17% of the company's total sales at this point. However, this could grow a ton. As of year-end 2019, Dunkin' Donuts had more than 13,000 locations. Nearly 10,000 of those are in the United States, and the other 3,500 are international. Three thousand five hundred is an impressive number and shows the potential for the company to become a coffee and fast-food leader around the world, following in the footsteps of McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX). Dunkin' Is a Natural Social-Distancing WinnerThe Canton, Massachusetts-based company's other main winning trait is a business model that relies heavily on "takeaway" purchases and mobile deliveries.Takeout orders represented 90% of the company's business even before the quarantines started. Unlike Starbucks, few people go to Dunkin' to hang out and enjoy the ambiance. Dunkin' has never marketed itself as a public space to linger with friends or get work done. So it loses little from switching to all takeout and delivery for the time being.On top of that, Dunkin' is actively finding new clients through delivery services. The company has added delivery alliances with GrubHub (NYSE:GRUB), UberEats (NYSE:UBER), DoorDash and Postmates. Put it all together, and the company has doubled its pre-coronavirus delivery capacity. The Verdict on DNKN StockDunkin' has a fantastic brand. And, unlike a McDonald's or Starbucks, it's not fully saturated yet. There are plenty of markets, both in the United States and overseas, for Dunkin' to tap in to.On top of that, Dunkin' has a unique advantage right now: Its brand is based around its products, but not its in-store experience. People like Dunkin's doughnuts and drinks (and the ice cream at Baskin-Robbins), not the look of its restaurants. Thus, Dunkin' can seamlessly switch to delivery and takeout only for some time, while many competitors lose much of their appeal without dine-in eating.So, I expect Dunkin' Brands to snap back quickly and thrive in the post-coronavirus world. Dunkin' was set to earn more than $3 per share before the virus hit. And the company has historically grown earnings at more than 10% a year thanks to its new-store growth and large share buyback.For a fast-growing franchisee restaurant chain, the market normally would pay at least 25x earnings, which would support a stock price up toward $80. As investors figure out that sales should be steady, and perhaps even increase as the new delivery options kick in, expect shares to continue moving higher.Eric Fry is an award-winning stock picker with numerous "10-bagger" calls -- in good markets AND bad. How? By finding potent global megatrends … before they take off. And when it comes to bear markets, you'll want to have his "blueprint" in hand before stocks go south. Eric does not own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Dunkin' Brands Has the Perfect Recipe to Overcome Coronavirus Challenges appeared first on InvestorPlace.
A streamlined central company and local room for initiative enabled an efficient response to the pandemic.
Dunkin' Brands, the parent company of Dunkin' and Baskin-Robbins, today announced the promotion of Ryan Schaffer to Vice President and Managing Counsel. Schaffer will lead a team responsible for performing and supporting several critical functions, including corporate governance, SEC reporting and compliance, investor relations, franchise disclosure, privacy and data security, IT, supply chain, and certain market operations. He reports directly to David Mann, Senior Vice President and Chief Legal Officer at Dunkin' Brands.
Hostess Brands CEO Andy Callahan tells Yahoo Finance people continue to fill their pantries with donuts and Twinkies amidst the COVID-19 pandemic.
It's good to see businesses emerge from the worst of the COVID-19
Mastercard and Booking make the list Continue reading...
Beyond Meat Inc posted better-than-expected quarterly sales on Tuesday, but suspended its 2020 forecast as the COVID-19 pandemic hit demand for the company's plant-based meat products at restaurants. Closure of dine-in areas and restrictions on movement put in place to slow the spread of the novel coronavirus have severely dented sales at restaurants, including Beyond Meat's restaurant partners McDonald's Inc, Dunkin Brands Group Inc and Starbucks Corp and have forced them to rethink how to service customers through limited operations. Beyond Meat Chief Executive Officer Ethan Brown told Reuters on Tuesday that food service sales in March were about 23% lower than what the company had expected, while sales at retail outlets were up 12%.
As Dunkin' continues to navigate the COVID-19 health crisis, the brand has simultaneously continued to advance key sustainability initiatives to serve both people and the planet responsibly. Dunkin' today announced that 100% of its restaurants globally have transitioned from polystyrene foam cups to paper cups, meeting the timetable established by the brand two years ago. In Dunkin' U.S. restaurants, the foam cups have been replaced by double-walled paper cups. Dunkin' is also on track to fully transition to new, recyclable hot coffee cup lids in all of its U.S. restaurants by the end of the summer, and is committing to doubling its number of DD Green Achievement™ restaurants within five years.
For quite some time, I've expressed skepticism toward plant-based meat producer Beyond Meat (NASDAQ:BYND). Primarily, I can summarize the enthusiasm in one word: fad. Most recently, we saw the dramatic rise and subsequent fall of National Beverage (NASDAQ:FIZZ), which attempted to capitalize on the ephemeral sparkling water craze. But the difference is that unlike BYND stock, FIZZ never encountered an economically devastating pandemic during its glory days. So, will the novel coronavirus change the narrative for fake meat?Source: Sundry Photography / Shutterstock.com On the surface, it seems as if Beyond Meat received a much-needed lifeline. Recently, traditional meat-processing companies raised the alarm, suggesting that the pandemic's disruption to critical supply chains will translate to animal-protein-based food shortages. As we saw with toilet paper when the initial panic struck, just hearing about shortages for any core product will drive folks into a frenzy.If that were to happen with meat, only the early-bird shoppers will be satisfied. Everyone else will be left with no alternatives, except for one glaring option: plant-based meat. Based on this implication, BYND stock enjoyed a tremendously positive month of April.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFurthermore, Beyond Meat isn't what you would call an alien concept. The company has made an aggressive push toward inking deals with high-profile fast-food chains, such as McDonald's (NYSE:MCD), Dunkin Brands (NASDAQ:DNKN) and Starbucks (NASDAQ:SBUX). It has also made substantial overtures to grocery chains. * 7 Fundamentally Solid Dividend Stocks to Buy Some people swear by the product. Certainly, momentum at fast-food chains suggest that consumers are at least willing to give fake meat a shot. For those that the company hasn't reached, the pandemic -- along with the meat shortage -- represent a perfect opportunity.Nevertheless, I still wouldn't put BYND stock in your portfolio. BYND Stock Is in the Same Boat as Its RivalsFirst, let me address a somewhat overlooked factor: alternative meat is not universally loved. If anything, it's an acquired taste. Plus, the chemicals involved to give plant-based materials its meaty texture may not suit everyone's digestive system.Second, President Trump recently declared meat-processing plants "critical infrastructure." While this announcement may not resolve all issues surrounding the meat-based food supply chains, it demonstrates that the federal government will do everything it can to prevent catastrophic shortages.But one of the biggest reasons why I'm skeptical about BYND stock is that its supporters are pretending that the headwinds that impact traditional meat will exempt the alternative meat industry. In reality, they're both sitting in the same boat.While the supply chain disruption has many components, a key driver to the meat shortages is demand. Shortly after Covid-19 raged across the nation, most states elected to impose stay-at-home orders. That one move immediately crippled the restaurant industry. Although many states allowed restaurants to switch to a food-delivery model, that failed to significantly mitigate the pain.Additionally, with nothing to do, most consumers have elected to do their own shopping. Obviously, it's cheaper -- especially during a time of economic turmoil -- and it helps kill the time.Unfortunately, this hard transition cut meat demand from restaurants, helping to cause the meat shortage we're suffering now. But the hit to restaurants is also a hit to BYND stock. In their most recent earnings report, management disclosed that restaurants and food service outlets represented 59% of Beyond Meat's quarterly revenue.In other words, whatever lookie-loo demand they get from grocery shoppers will not make up for the losses they're seeing from the headwinds supposedly creating their opportunity. A Classic Bull TrapThis is another reason why I call BYND stock a fad investment: Beyond bulls are only thinking one-dimensionally. If anything, the coronavirus is a bigger disruption to alternative meat companies as opposed to their traditional counterparts.That's because real meat producers don't need to justify their existence. Humans have been eating animal protein since their inception. More than likely, we'll continue to do so for another millennia. What does need justification is the concept of eating chemicals that resemble the look, taste and feel of the real thing.Yes, you can make the argument that Beyond has been successful in communicating that message. However, that communication was not cheap. In order to reap the rewards from that marketing risk, BYND desperately needed a normal market environment. Unfortunately, they don't have it.Instead, what they're left with right now are counterfeit products at premium prices. Ironically, because the plant-based supply chain isn't fully fleshed out, Beyond Meat products are priced much higher than their real counterparts.Put another way, Beyond lacks the scale to compete effectively. Once supply chains normalize for all food products, BYND stock has a chance. But by then, the traditional meat producers will presumably be back to full capacity.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Beyond Meat Stock Is a Classic Bull Trap appeared first on InvestorPlace.
Dunkin’, Domino’s and Chipotle are among the restaurant chains that have seen consumer purchasing behavior change due to COVID-19-related lockdowns.
Beyond Meat reported Q1 earnings that beat expectations as concerns about a meat-shortage rise. Yahoo Finance's Jen Rogers, Myles Udland and Brian Sozzi discuss.
Q1 2020 Dunkin' Brands Group Inc Earnings Call
The two coffee chains were performing well before the coronavirus hit, but which one offers better prospects going forward?
Dunkin’ Brands and Starbucks get about 60% of their sales before 11 a.m., meaning there’s more downside risk to their stocks from a lack of breakfast bounce-back than to peers, according to Evercore ISI.
Lawmakers put language in the $2.2 trillion CARES Act that will allow businesses to get larger deductions more quickly for renovations to the inside of their property, tax experts say.
One of the few beneficiaries of the novel coronavirus pandemic are delivery services. You'd expect firms like Grubhub (NYSE:GRUB) to be reporting an explosion in new orders now that restaurants are closed and people are stuck inside. But Grubhub stock fell 12% on Thursday after the firm's first quarter results disappointed investors on Wednesday evening.Source: Lori Butcher / Shutterstock.com Grubhub was able to grow its revenue by $39.2 million, but diner data disappointed as the firm seemed to miss out on the rising wave of delivery requests seen by its peers.The firm's inability to appeal to customers in this kind of environment speaks volumes about the future success of the company.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What's Wrong with Grubhub StockDespite the firm's ability to beat earnings and revenue estimates, user metrics were entirely disappointing. Over the course of the first quarter, active diner growth declined to 24% from 28% in Q4. Daily orders were down 1% annually. * 10 Key Stocks to Watch Over the Next Few Months Perhaps some of that can be attributed to restaurant closures and coronavirus worries. After all, many restaurants closed their doors completely to protect employees from the spread of Covid-19. Even still, it's worrying that at a time when people are stuck indoors for weeks, Grubhub hasn't seen an uptick in its business.What's more, Grubhub didn't provide guidance for the second quarter, except to say the firm was planning to spend almost all of its profits in order to grow its customer base. Investors may be able to get on board with aggressive spending, but only if the firm is able to prove that what it's doing is working. So far, they're not convinced. Grubhub FeesPerhaps one reason for the firm's lack of customers is the ultra-high fees it charges many restaurants that use its service. Some cities have cracked down on Grubhub by limiting the amount it's allowed to charge restaurants, but others haven't, allowing GRUB to significantly eat into restaurant margins.That could cause many restaurants, especially those that are already on the brink of failure, to sort out their own delivery service. It could also cause some to opt for a takeaway service rather than paying for Grubhub to be an intermediary. In some cases, restaurants are actually asking customers not to use Grubhub and other similar services because of the exorbitant fees they charge. Although Grubhub has pledged to help get its partner restaurants back on track, the company has done little in the way of fee reductions to make its service more useful.That's not what you want to see from an investment standpoint. The intermediary delivery service needs to benefit both the customer and the restaurant. Otherwise, it simply can't work. If the costs to run Grubhub require high fees, it's not a sustainable business. Grubhub Is BrokenIt's unclear exactly why Grubhub can't seem to pull itself together during the pandemic -- this would be an ideal opportunity to lock-in new partners and acquire new customers. The drawdown in both orders and users is extremely concerning. Earlier in April, investors started to get excited about Grubhub's prospects during the pandemic. That's because big names like Dunkin Brands (NASDAQ:DNKN) announced they'd be using the service to offer delivery to their customers. The stage was set for Grubhub stock to fly higher. But there was little to no impact from the shift away from eating-in in the first quarter -- a big disappointment for investors. Covid-19 ChallengesIt's worth noting that Grubhub stock, like most of its peers, has struggled with its own share of coronavirus-related issues that have kept a lid on profits. This week, Uber's (NYSE:UBER) results will give investors an idea of how Uber Eats performed to give them a better idea of whether or not Grubhub missed the mark.Now that restrictions are loosening, the current quarter will be make-or-break for GRUB stock.Not only is the firm likely to see most of its restaurant partners reopen this quarter, but social distancing rules mean it will be harder for customers to dine in. Plus, many would-be diners may be hesitant to head back out in public, strengthening demand for delivery.If Grubhub can't produce an uptick in users as well as daily orders, that's a signal that this business can't last. The remainder of 2020 should be a boon for delivery services as social distancing restrictions are relaxed but not abandoned. Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Grubhub Stock Is Missing Its Moment appeared first on InvestorPlace.