Dunkin' Brands Group (Dunkin' Brands Group) Interest Coverage : 3.82 (As of Sep. 2020)

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What is Dunkin' Brands Group Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Dunkin' Brands Group's Operating Income for the three months ended in Sep. 2020 was $122 Mil. Dunkin' Brands Group's Interest Expense for the three months ended in Sep. 2020 was $-32 Mil. Dunkin' Brands Group's interest coverage for the quarter that ended in Sep. 2020 was 3.82. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Dunkin' Brands Group's Interest Coverage or its related term are showing as below:

DNKN's Interest Coverage is not ranked ^*
in the Restaurants industry.
Industry Median: 6.835
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Dunkin' Brands Group Interest Coverage Historical Data

The historical data trend for Dunkin' Brands Group's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Dunkin' Brands Group Interest Coverage Chart

Dunkin' Brands Group Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Interest Coverage

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3.74

3.63

3.61

3.10

3.38

Dunkin' Brands Group Quarterly Data
	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20
Interest Coverage	Get a 7-Day Free Trial															3.61	3.21	3.05	2.38	3.82

Competitive Comparison of Dunkin' Brands Group's Interest Coverage

For the Restaurants subindustry, Dunkin' Brands Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Dunkin' Brands Group's Interest Coverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Dunkin' Brands Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Dunkin' Brands Group's Interest Coverage falls into.

Dunkin' Brands Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Dunkin' Brands Group's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, Dunkin' Brands Group's Interest Expense was $-128 Mil. Its Operating Income was $434 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,385 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2019 )	/	Interest Expense (A: Dec. 2019 )
	=	-1	*	434.084	/	-128.411
	=	3.38

Dunkin' Brands Group's Interest Coverage for the quarter that ended in Sep. 2020 is calculated as

Here, for the three months ended in Sep. 2020, Dunkin' Brands Group's Interest Expense was $-32 Mil. Its Operating Income was $122 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,350 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2020 )	/	Interest Expense (Q: Sep. 2020 )
	=	-1	*	121.756	/	-31.854
	=	3.82

The higher the ratio, the stronger the company's Financial Strength is.

Dunkin' Brands Group (NAS:DNKN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Dunkin' Brands Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of Dunkin' Brands Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Dunkin' Brands Group (Dunkin' Brands Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Dunkin' Brands Group Inc (NAS:DNKN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

130 Royall Street, Canton, MA, USA, 02021

Website

https://www.dunkinbrands.com

Dunkin' Brands, through Dunkin' Donuts (83% of system sales) and Baskin-Robbins (17%), generates revenue through franchise royalties and rent payments, sales of ice cream products to franchisees, and sales at company-owned stores. Based on systemwide sales of $12.2 billion in 2019, Dunkin' is the second-largest global beverage and snack chain behind Starbucks. There are more than 13,100 Dunkin' Donuts (9,600 U.S. and 3,500 international) and almost 8,000 Baskin-Robbins locations worldwide (2,500 U.S. and 5,500 international). In October 2020, the company agreed to a $11.3 billion buyout by Roark Capital-backed Inspire Brands, the parent company of Arby's, Sonic, Buffalo Wild Wings, Jimmy John's and others.

Executives

Carl Sparks	director	4315 NORTHAVEN ROAD, DALLAS TX 75229
Mark E Nunnelly	director	BAIN CAPITAL PARTNERS LLC, JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116
Anthony Dinovi	director	C/O THOMAS H LEE PARTNERS LP, 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Irene Chang Britt	director	CAMPBELL SOUP COMPANY, ONE CAMPBELL PLACE, CAMDEN NJ 08103
Ralph Alvarez	director	ELI LILLY AND COMPANY, LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Karen Raskopf	officer: Chief Comm & Sust Officer	130 ROYALL STREET CANTON MA 02021
John Varughese	officer: SVP, International	C/O DUNKIN BRANDS, INC. 131 ROYALL STREET CANTON MA 02021
Philip Auerbach	officer: Chief Digital & Strategy Offcr	C/O LINDBLAD EXPEDITIONS HOLDING, INC., 96 MORTON STREET, 9TH FLOOR, NEW YORK NY 10014
Nigel Travis	director	C/O BLOCKBUSTER INC, 1201 ELM ST #2100, DALLAS TX 75270
Michael F Hines	director
Roland Smith	director	2951 28TH STREET, SANTA MONICA CA 90405
John L. Clare	officer: CIO and Chief Strategy Officer	C/O DUNKIN BRANDS, INC. 130 ROYALL STREET CANTON MA 02021
Richard J Emmett	officer: Chief Legal Officer	2002 PAPA JOHNS BOVD, PO BOX 999000, LLOUISVILLE KY 40269-0900
Sandra Horbach	director	C/O FORSTMANN LITTLE & CO, 767 FIFTH AVE, NEW YORK NY 10153
William M Mitchell	officer: President, International	P.O. BOX 99900, LOUISVILLE KY 40269