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Dunkin’ IPO may raise up to $401m

Bloomberg News / July 26, 2011

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NEW YORK -Dunkin’ Brands Group Inc., operator of Dunkin’ Donuts coffee shops, plans to offer shares at a premium to Starbucks Corp. as it accelerates a US expansion.

Canton, Mass.-based Dunkin’ is seeking to raise up to $401 million in an initial public offering today, selling 22.3 million shares for $16 to $18 each, according to a regulatory filing. At the midpoint, Dunkin’s market value would be about $2.15 billion, or 3.6 times trailing 12-month sales, compared with about 2.7 times for Starbucks.

Dunkin’ plans to more than double its number of US distribution points, currently at 6,800, in the next 20 years. It may open more stores than Starbucks. Last year, Dunkin’s revenue increased faster than at McDonald’s Corp., which competes with the McCafe line of coffees.