Business

Watch out for Dunkin' Spicy Ghost Pepper Donut mania: Stock strategist


Social media is ablaze right now with early takes of a new Spicy Ghost Pepper Donut from Dunkin’ Brands ( DNKN ).


If investors have learned anything from positive social media takes on new fast-food such as Wendy’s spicy nuggets (2019), Popeyes chicken sandwich (2019) and Travis Scott’s value meal at McDonald’s (2020), it could be a sales needle mover for the restaurant in question.


If they’re doing that with great [sales] numbers, it’s an awesome opportunity from an investment perspective,” said AdvisorShares CEO Noah Hamman on Yahoo Finance’s The First Trade .


First and foremost, as the U.S. economy has come out of COVID-19 lockdown people are returning to picking up a cup of Joe at Dunkin’ late in the morning and early afternoon (and rivals to be fair).


The company has slowed U.S. store expansion to better operate the business and has slimmed down the menu to focus more on high margin coffee items.


We assume comp re-acceleration from here, driven by marketing, a strong product pipeline, and the ramp of its loyalty program,” wrote Barclays restaurant analyst Jeffrey Bernstein after meeting with Hoffmann and his investor relations chief earlier this month.






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