Dunkin’ Brands Group (NASDAQ: DNKN) and Panera Bread (NASDAQ:PNRA) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitabiliy, analyst recommendations, earnings and institutional ownership.
Dunkin’ Brands Group pays an annual dividend of $1.29 per share and has a dividend yield of 2.4%. Panera Bread does not pay a dividend. Dunkin’ Brands Group pays out 56.3% of its earnings in the form of a dividend.
This table compares Dunkin’ Brands Group and Panera Bread’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dunkin’ Brands Group||25.48%||-141.72%||7.08%|
Valuation & Earnings
This table compares Dunkin’ Brands Group and Panera Bread’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dunkin’ Brands Group||$832.00 million||5.87||$445.56 million||$2.29||23.35|
Dunkin’ Brands Group has higher revenue and earnings than Panera Bread. Dunkin’ Brands Group is trading at a lower price-to-earnings ratio than Panera Bread, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Dunkin’ Brands Group and Panera Bread, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dunkin’ Brands Group||3||8||7||0||2.22|
Dunkin’ Brands Group currently has a consensus price target of $56.24, indicating a potential upside of 5.15%. Panera Bread has a consensus price target of $278.33, indicating a potential downside of 11.62%. Given Dunkin’ Brands Group’s higher possible upside, equities research analysts plainly believe Dunkin’ Brands Group is more favorable than Panera Bread.
Risk and Volatility
Dunkin’ Brands Group has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, Panera Bread has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.
Insider and Institutional Ownership
96.9% of Dunkin’ Brands Group shares are owned by institutional investors. Comparatively, 96.7% of Panera Bread shares are owned by institutional investors. 3.1% of Dunkin’ Brands Group shares are owned by company insiders. Comparatively, 7.0% of Panera Bread shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Panera Bread beats Dunkin’ Brands Group on 7 of the 12 factors compared between the two stocks.
Dunkin’ Brands Group Company Profile
Dunkin’ Brands Group, Inc. is a franchisor of quick service restaurants (QSRs) serving hot and cold coffee and baked goods, as well as hard serve ice cream. The Company franchises restaurants under its Dunkin’ Donuts and Baskin-Robbins brands. The Company operates through four segments: Dunkin’ Donuts-U.S., Dunkin’ Donuts International, Baskin-Robbins International and Baskin-Robbins-U.S. The Dunkin’ Donuts U.S. segment is the United States QSR concept, and markets donut and bagel categories for servings. The Baskin-Robbins-U.S. segment is engaged in serving hard-serve ice cream, and develops and sells a range of frozen ice cream treats, such as cones, cakes, sundaes and frozen beverages. The Company’s Dunkin’ Donuts International segment franchisees are responsible for sourcing their own supplies with its standards. As of December 31, 2016, Baskin-Robbins International segment had a manufacturing network, which consisted of 14 facilities.
Panera Bread Company Profile
Panera Bread Company is a food service company. The Company is a national bakery-cafe concept. As of December 27, 2016, the Company operated 2,036 own and franchise-operated bakery-cafe locations in 46 states, the District of Columbia, and Ontario, Canada. It operates through three segments: Company bakery-cafe operations, franchise operations, and fresh dough and other product operations. The Company Bakery-Cafe Operations segment includes the operating activities of the bakery-cafes owned directly and indirectly by the Company. The Franchise Operations segment includes the operating activities of the franchise business unit, which licenses qualified operators to conduct business under the Panera Bread or Paradise Bakery & Cafe names. The Fresh Dough and Other Product Operations segment supplies fresh dough, produce, tuna, cream cheese, and indirectly supplies sweet goods items through a contract manufacturing arrangement, to the Company-owned and franchise-operated bakery-cafes.
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