Inspire Brands buying Dunkin Donuts for $8.76 Billion

Inspire Brands announced on Friday that he is buying Dunkin Brands Group for $8.76 Billion which is one of the largest restaurant deals. The two chains Arby’s and Dunkin’s Donuts will merge but will keep operating separately.

The Inspire brand is buying Dunkin donuts in a cash deal which would increase the share price of Dunkin Donuts group to $106.5 per share, that’s more than 20% increase in Dunkin’s premium share at October 23. The deal is valued at about $11.3 billion, including debt

Dunkin’ and Baskin-Robbins both have improvements in sales after the lockdowns enhanced by their drive-thru, curbside pickup and delivery options. Both companies announced on Thursday a surprise rise in U.S. sales in the third quarter.

Inspire Brands has 11,000 restaurants and it was formed in 2018 by private equity firm Roark Capital as a holding company. There are 12,900 Dunkin restaurants and 8,000 Baskin-Robbins stores around the world.

The CEO of Inspire Brands said that the deal will add more than 15 million loyalty members and Inspire group will get stronger through their enormous platform and strong consumer packaged goods licensing infrastructure.

On Friday, shares of Dunkin’ Brands Group, Inc. (NASDAQ:DNKN) marked $99.71 per share versus a previous $101.10 closing price. With having a -1.37% loss, an insight into the fundamental values of Dunkin’ Brands Group, Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts.

DNKN showed a rise of 32.00% within its YTD performance, with highs and lows between $38.51 – $104.87 during the period of 52 weeks, compared to the simple moving average of 43.18% in the period of the last 200 days.

Dunkin’ Brands Group, Inc. (DNKN) is based in the USA and it represents one of the well-known company operating with Consumer Cyclical sector. If you wish to compare DNKN shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 38.06 for Dunkin’ Brands Group, Inc., while the value 31.78 can represent an indicator in the future growth of the company in terms of investor’s expectations.