AP – The Dunkin’ doughnuts and coffee chain confirmed it held talks to be taken private by a private equity firm, sending its shares rocketing to an all-time high on Monday.
Dunkin’ Brands Group said it is in preliminary discussions with Inspire Brands, which also owns Arby’s and Jimmy John’s Sandwiches. In a prepared statement on Sunday, Dunkin’ said it is not yet certain a deal would be reached and would not comment further.
Inspire Brands said it had no comment on Monday.
Dunkin’ shares jumped USD14.31, or 16.1 per cent to close on Monday at USD103.10.
Dunkin’, based in Canton, Massachusetts, also owns the Baskin-Robbins ice cream chain.
There are 13,000 Dunkin’ stores and 8,000 Baskin-Robbins outlets worldwide.
Both brands have significant history. Dunkin’ was founded in 1950 in Quincy, Massachusetts.
Baskin-Robbins — known for its promise of 31 flavours — was founded in 1945 in Glendale, California. But the global pandemic hurt sales. Dunkin’ Brands revenue fell 20 per cent in the second quarter, and the company said franchisees closed 200 restaurants permanently.
Dunkin’ Brands reported full-year sales of USD1.4 billion in 2019, up four per cent from the previous year.
Atlanta’s Inspire Brands, which was founded in 2018, is quickly placed itself among the largest restaurant groups in the United States (US).
Dunkin’ would give Inspire a spot in the breakfast category, which was the fastest-growing segment of the restaurant industry before the pandemic hit.