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Lone Pine's Steve Mandel Buys 7% of Dunkin Donuts

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Sep 11, 2012
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Investor Steve Mandel of hedge fund Lone Pine Capital has acquired a new holding, Dunkin’ Brands Group (DNKN, Financial). Dunkin’ Brands is the parent company of Dunkin’ Donuts and Baskin-Robbins. Mandel bought 7,021,945 shares of the company, paying $29 per share on average, according to GuruFocus Real Time Picks. He now owns 7% of the company.

Dunkin Brands Group Inc has a market cap of $3.51 billion; its shares were traded at around $30.56 with a P/E ratio of 25.1 and P/S ratio of 5.6. The dividend yield of Dunkin Brands Group Inc stocks is 2.1%.

Dunkin’ shares have gained 22% year to date. It has been a publicly traded company for a little over a year. In the second quarter, the company opened 140 new restaurants worldwide and grew revenue by 9.8% on increased royalty income from higher sales. Net income increased by $1.3 million year over year due to decreased interest expenses from refinancing and repaying debt with proceeds from its IPO.

For fiscal year 2012, the company expects U.S. comparable store sales to grow 4 to 5%, and Baskin-Robbins U.S. comparable store sales to grow 2 to 4%. It also has plans to add between 260 and 280 net new restaurants and close 40 to 60 Baskin-Robbins U.S. locations.

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