Investing.com -- Dunkin Brands Group Inc (NASDAQ:DNKN), the restaurant holding company that owns Dunkin Donuts, closed nearly 3% higher after its stock received an upgrade on Thursday.
Dunkin Brands Group gained 2.98% or 1.345 to $46.49 after analysts from Goldman Sachs (NYSE:GS) upgraded it from a neutral to a buy on Thursday morning. Citing the company's plan to expand distribution of its Dunkin' K-Cup packs to grocery chains, drug stores and home improvement stores, Goldman Sachs also raised their price target of Dunkin Brands from $47 to $54 a share.
"Not only will this increase the consumption of Dunkin' Donuts coffee; it will help us continue to build our brand relevance with new and existing customers, which we believe will, in turn, drive incremental visits to our restaurants," said Dunkin' CEO Nigel Travis, on the deal reached with JM Smucker Company (NYSE:SJM) and Keurig Green Mountain Inc (NASDAQ:GMCR) last week to expand their partnership.
Also on Thursday, the company announced plans to take out a nanoparticle from its powdered doughnuts that could potentially be harmful to customers. In 2013, a study by the nonprofit group As You Sow, found that the white powdered sugar that lines Dunkin's powdered cake doughnuts contained nanoparticles of titanium dioxide, a potential carcinogen.
The company has 30 days to provide a timetable for the removal of the particles, according to a resolution reached between the nonprofit group and Dunkin' Brands shareholders.