- Daniel Oines/Flickr
Dunkin’ Brands shares tumbled by as much as 12% in trading on Thursday morning after the company provided sales guidance below what analysts were expecting.
The company held its investor day. It forecast that Dunkin’ Donuts same-store sales (at locations open for at least one year) would grow 1.1% in the third quarter. Analysts had forecast growth of 2.6%, according to Bloomberg.
For the full fiscal year, the company anticipated same-store-sales growth of 1% to 3% at both Dunkin’ Donuts and Baskin-Robbins. Analysts’ estimates were 3.32% for Dunkin’ Donuts and 2.7% for Baskin-Robbins.
The company also announced that it would close 100 Dunkin’ Donuts stores in Speedway gas stations by the end of 2016.
Efraim Levy, an analyst at S&P Capital IQ, wrote in a note that these closures should not hamper the planned gross store openings between now and the end of next year.
Levy rates the stock a “hold”, with a 12-month price target lowered to $49 from $56.
And it’s clear from the investor presentation that Dunkin’ Brands has not been spared from many of the challenges US companies have faced this year.
- Dunkin Brands
Here’s a chart showing the plunge in shares on Thursday. The stock fell to as low as $42.75 a share, the weakest since early January. It is up nearly 1% year-to-date.
- Google Finance