Technicalspeculator.com’s Trade-of-the-Week: Dunkin’ Brands Group Inc. (DNKN)

By Tech_Spec Forbidden
12-June-2019 10:58:49 AM
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This week’s trade comes from the consumer discretionary sector, restaurant & bars industry.   Below are some of the important details. Enjoy.

Company profile: Dunkin’ Brands Group, Inc., together with its subsidiaries, develops, franchises, and licenses quick service restaurants worldwide. The company operates through five segments: Dunkin’ U.S., Dunkin’ International, Baskin-Robbins International, Baskin-Robbins U.S., and U.S. Advertising Funds. Its restaurants serve hot and cold coffee, baked goods, and hard serve ice cream. The company also offers packaged coffee, Dunkin’ K-Cup pods, and ready-to-drink bottled iced coffee in retail outlets. As of December 29, 2018, it had 12,871 Dunkin’ Donuts points of distribution and 8,041 Baskin-Robbins points of distribution. The company franchises its restaurants under the Dunkin’ Donuts and Baskin-Robbins brands. Dunkin’ Brands Group, Inc. is headquartered in Canton, Massachusetts.

 

Fundamentals:

Trailing P/E: 28.29, Forward P/E: 24.23

P/S: 4.84, P/B: N/A

PEG: 3.03, Beta: 0.91, EPS: 2.78

Profit margin: 17.33%, Operating margin: 30.59%

ROA: 7.35%, ROE: N/A

Quarterly earnings growth (yoy): 4.30%

Additional fundamental data: https://finance.yahoo.com/quote/DNKN/key-statistics?p=DNKN

 

Technicals: 

Recently broke out of a 10-month consolidation

New 52-week high

New all-time high

Buying momentum is positive and rising

Buying volume is neutral

1st support level is$74.0

The safety stop is at $74.90

The target is $89.50

Suggested buying approach: Buy DNKN at the current price level.  If the stock pulls back, as long as the price is above the stop level, wait for confirmation of support and then add to the position if desired.  Always use a 3% trailing stop.

 

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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the Technicalspeculator.com, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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