While the announcement offered no hint of how operations or personnel would shift here, Inspire Brands’ $11.3 billion purchase of Dunkin’ Brands will bring the ownership of two global brands to Atlanta, bolstering the city’s case further as a franchising powerhouse.
Dunkin’ Brands comprises Dunkin’, the coffee chain that recently dropped the “donuts” from its name, as well as Baskin-Robbins, the “31 flavors” ice cream chain that claims to be the largest such outfit in the world.
If it closes later this year as expected for the price of $106.50 per share, the deal would be the largest yet for Inspire, which already owns Arby’s, Buffalo Wild Wings, SONIC and other brands and is owned by Roark Capital, also based in Atlanta.
Founded in 1950 in Massachusetts, Dunkin’ has 12,500 locations in more than 50 countries, while California-born Baskin-Robbins boasts 7,800 in the same number of nations.
Combined they reach nearly 60 countries , and their ambitions haven’t slowed. Dunkin’ is already seeking franchisees for Germany and Spain, with many European and North African markets as well as Nigeria tapped for future expansion.
Baskin Robbins is open to franchisees in the United Kingdom, with Kenya, Chile, Ireland and other markets on the horizon.
Inspire, which already has 11,000 restaurants and $15 billion in annual sales in its portfolio, was attracted to the Dunkin’ deal in part because of the company’s global reach, as well as its licensing infrastructure for consumer packaged goods and ability to immediately bring 15 million loyalty members into the fold. Inspire’s restaurants currently reach 14 countries, with Arby’s recently expanding into South Korea and Mexico.
The offer price represents a 20 percent premium on the Dunkin’ share price as of Oct. 23.
For the third quarter of 2020, Dunkin’ Brands closed 553 “points of distribution,” including 425 Dunkin’ locations inside Speedway fueling stations in the U.S. as the terms of their agreement expired. It also closed one Dunkin’ International location and 75 Baskin-Robbins locations globally, mostly in India, Japan and Russia.
Overseas revenues weighed on financial results as COVID-19 forced temporary store closures and delayed reopenings globally. Same-store sales declined 15.9 percent at Dunkin’ International and 0.5 percent at Baskin-Robbins International.
For the quarter, the Dunkin’ Brands overall posted revenues of $361.5 million, a 1.6 increase from the same period in 2019. Systemwide sales were down 1.3 percent at $3.17 billion, while income stood at $77.3 million up 2.1 percent or $0.90 per share.
