Is Dunkin' Donuts Stock a Buy? An SEO-Optimized Analysis

As a seasoned SEO expert, I am here to provide you with a thorough analysis of whether Dunkin' Donuts stock (DNKN) is a worthwhile investment. I am personally an investor in the company, and I believe there are compelling reasons to consider adding Dunkin' Donuts to your portfolio.

Why Invest in Dunkin' Donuts?

People have a soft spot for donuts, and Dunkin' Donuts has built a strong brand that continues to resonate with consumers. In fact, I have a mutual friend who sells mini-donuts at conventions on weekends, and he has been successful. This supports the notion that no one will give up on Dunkin' Donuts.

Earnings and Growth Projections

While the earnings per share (EPS) growth over the nine-month period has remained almost flat, it is important not to rely solely on valuations. For instance, Starbucks (SBUX) has seen a significant EPS growth of over 30 percent, which might be a more appealing option for the present. However, I want to emphasize that Dunkin' Donuts, despite its earnings stagnation, still offers a compelling value proposition.

Here are some key financial figures for retail investors:

EPS: 1.6664

P/C: 0.576

P/E: 22.88

Average Volume: 1.7 million

50-day SMA: The stock is currently sitting just under the 50-day SMA

Earnings Beat Expectations: The company has beaten earnings expectations in the last three quarters and is forecasted to grow over the next five years.

Timing and Valuation

Ignoring the broader macroeconomic conditions for a moment, now might be a good time to add Dunkin' Donuts to your portfolio. As of the time of writing, I do not hold a position in the company, but I remain optimistic about its future.

The company has a solid fundamental structure, a healthy dividend yield of 2.74%, and a forecasted EPS growth of 14% for 2016. This growth rate is quite high for an established company, making it a compelling value proposition. Additionally, Dunkin' Donuts is down 19% year-to-date, which suggests it is currently undervalued. Much of the price change can likely be attributed to market fear rather than a shift in the company's internal focus.

Analyzed Metrics

When looking at the technical indicators, the following is observed:

RSI: 31.64 (Just about to become overbought)

StochFast: 53.26/60.08 (Has just crossed over to negative territory)

MACD Diff: -0.07

Conclusion

While the EPS growth of Dunkin' Donuts hasn't been impressive recently, the company still has strong fundamentals and a loyal customer base. Given the current price and the strong dividend yield, it could be an attractive addition to your portfolio. My recommendation is to keep a watchful eye on the stock and consider buying now if the trends continue to favor the company.

Note: These opinions are personal, and you should conduct your own research before making any investment decisions. I am not responsible for any losses incurred as a result of following this advice.