Steve Mandel’s Lone Pine Acquires 7% of Dunkin Donuts


According to a 13G just filed with the Securities and Exchange Comission (SEC), Steve Mandel’s Lone Pine Capital LLC has acquired a 6.7% stake in Dunkin Brands Group Inc (NASDAQ:DNKN) (commonly refereed to as Dunkin Donuts). Mandel’s Lone Pine purchased 7,021,945 million shares of the baked goods franchisor. The stock closed today at $29.33. With a market capitalization of $3.5 billion, Mandel’s stake in Dunkin Brands Group Inc (NASDAQ:DNKN) is worth $235 million.

Dunkin Brands Group Inc (NASDAQ:DNKN) currently has a price earnings ratio of 23, and an enterprise value over/EBITDA of 20.

For the 26 weeks ended 30 June 2012, Dunkin Brands Group Inc revenues increased 10% to $324.8M. Net income increased from $15.4M to $44.4M. Revenues reflect Dunkin’ Donuts U.S. segment increase of 12% to $233.7M, Comparable Store Sales % -Baskin-Robbins increase from -1.2 to 7%. Net income benefited from Interest expense decrease of 47% to $33.4M (expense). Dividend per share totaled to $0.30.

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The main competitors of Dunkin Brands Group Inc (NASDAQ:DNKN) include; McDonald’s Corporation (NYSE:MCD),  Starbucks Corporation (NASDAQ:SBUX) and Krispy Kreme Doughnuts(NYSE:KKD)

Other large owners include; Fidelity Management & Research Company with a 17% stake, and The Carlyle Group (NYSE:CG) with a 12% stake. Mandel was formerly an analyst at Julian Robertson’s Tiger Management. His hedge fund is known as a tiger cub. Another large Tiger cub which owns 5% of DNKN, is Philippe Laffont Coatue Capital, L.L.C..

Wellington Management Company, LLP just filed a 13G as well, reporting a 10.44% stake in the company.

(Full disclosure: the author of this article has no position in any securities mentioned).

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