Shares hit all-time high after holding buyout talks
The Dunkin’ doughnuts and coffee chain has confirmed it’s held talks to be taken private by a private equity firm, sending its shares rocketing to an alltime high Monday.
Dunkin’ Brands Group said it’s in preliminary discussions with Inspire Brands, which also owns Arby’s and Jimmy John’s Sandwiches. In a prepared statement Sunday, Dunkin’ said it is not yet certain a deal would be reached and would not comment further.
Inspire Brands said it had no comment Monday.
Dunkin’ shares jumped $14.31, or 16.1% to close Monday at $103.10.
Dunkin’, based in Canton, Massachusetts, also owns the Baskin-robbins ice cream chain. There are 13,000 Dunkin’ stores and 8,000 Baskin-robbins outlets worldwide.
Both brands have significant history. Dunkin’ was founded in 1950 in Quincy, Massachusetts. BaskinRobbins — known for its promise of 31 flavors — was founded in 1945 in Glendale, California.
But the global pandemic has hurt sales. Dunkin’ Brands revenue fell 20% in the second quarter, and the company said franchisees closed 200 restaurants permanently. Dunkin’ Brands reported full-year sales of $1.4 billion in 2019, up 4% from the previous year.