Dunkin' Brands Inks Deal To Open 3 Restaurants In Mankato

Dunkin' Donuts of Dunkin' Brands Group, Inc. (NASDAQ:DNKN) has signed a multi-unit store development agreement with new franchisees Oliver Schugel and David Schooff to develop three new restaurants in Mankato, MN.

The first restaurant under the agreement is slated to begin operations in 2017. With over 45 years of collective experience in business and real estate development, the group will look over the functioning of each Dunkin' Donuts restaurant that it inaugurates in Mankato. Notably, there are also additional franchise opportunities in Rochester, MN.

To aid additional growth in the market, the company is offering certain special development incentives. Dunkin' Donuts will be providing versatile concepts for any real estate format which includes free-standing restaurants, end caps, in-line sites, gas and convenience, travel plazas, universities coupled with other retail environments in a bid to keep the brand competitive.

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Notably, Dunkin' Brands ranks among the well-established global quick service restaurant brands. As a result, it enjoys enormous customer trust and brand loyalty making it easier for Dunkin' Donuts to launch new product lines.

Interestingly, the company has been aggressively expanding its business operations, lately. According to management, the markets with the greatest development potential and those performing well include California, Texas and Colorado. The company thus plans to expand its footprint in the emerging international markets, by adding roughly 3,000 units in the emerging markets.

Keeping with this, the Dunkin' Donuts brand recently inked a multi-unit store development agreement with a franchise group known as WF Donuts LLC, as part of the its expansion plans in Texas.

Thus, we believe such continued strong expansion strategies would certainly boost the company’s top line, going forward.

Dunkin' Donuts currently has a Zacks Rank #3 (Hold).

Stocks to Consider

Better-ranked stocks in the restaurant industry include Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) , Famous Dave's of America Inc. (NASDAQ:DAVE) and Restaurant Brands International Inc. (NYSE:QSR) . All these stocks sport a Zacks Rank #1 (Strong Buy).