Dunkin' Brands Expanding in Australia

The march of Dunkin' Brands  (NASDAQ: DNKN  )   toward world domination continues. In recent weeks, the company has announced plans to invade the Vietnamese market, expand operations in California, and, most recently, to brave the flood zone and tackle the donut business in New Orleans.

Today, Dunkin' reminded folks that it's not all about donuts and coffee -- Dunkin' owns the Baskin Robbins brand, too. So, on Thursday, the company confirmed a plan to "greatly expand the brand's presence in Australia," entering into a master franchise joint venture with local ice cream company Galadari Brothers, through which the companies plan to set up 200 new Baskin-Robbins ice cream shops across Australia over the next 10 years.

In so doing, Dunkin' will more than triple the size of its current 80-store base down under, while taking on few additional responsibilities itself. The company says it will need to contribute $2 million for marketing costs over the next three years, but disclosed no other costs of the joint venture.

Dunkin' plans to take a 20% stake in the JV. Galadari will hold a majority stake, and be "primarily responsible for day-to-day operations for the brand in Australia."

Dunkin' Brands shares closed down slightly despite the news Thursday, ending at $38.07.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2300454, ~/Articles/ArticleHandler.aspx, 12/19/2014 1:32:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement