Dunkin Brands Group Inc (NASDAQ:DNKN) firmly broke the short term range of $41-$43 to the downside and finished the last trading session with a loss of 3.58%. The volume of the day surged to 4.3 million, much higher than the daily average of 2.3 million, indicating the intensity of the selloff. The larger perspective makes the bearish picture very clear as the structural damage is evident from the chart attached. The long term support line has been broken and it has made multiple weekly closes below that. Some short term respite can be expected around $36 levels.
Dunkin Brands Group Inc (NASDAQ:DNKN) has made a shuffle in its executive positions, in a bid to improve business execution at the national and international level. The decision came just before the company announced its financial results for 3Q2015. The current quarter highlighted the fact that while the Baskin Robbins brand name was doing well, the Dunkin Donuts segment of the company had been more sluggish. This could be attributed to the fact that there has been a significant growth in competition in the US in the breakfast segment.
The recent decline in the international market share for the Dunkin Donuts segment of DKN’s business is not going unnoticed. The company has began working on developing new menus and increasing the number of drive-through stores as way of attracting more customers. Additionally, the company also expects that Dunkin Donuts would help the next quarter to be even more profitable. This is due to the Dunkin Brands recent partnership with Keurig Green Mountain Inc. As per the partnership, Green Mountain would market the K-Cup pods to retail stores in the country.
The recent shuffle in leadership is also expected to help improve the 4Q2015 earnings. As per the recent changes, Bill Mitchell would be the new President of the Dunkin Brands Group. He had previously been the head of the Baskin and Robbins segment of the company. The new SVP of Dunkin Donuts in US and Canada would be Scott Murphy, who had been the Chief Supply Officer for the company. However, Murphy would be responsible for managing the positions of CSO and SVP, but his duties as CSO in Latin America and Europe would now be transferred to Mitchell. Murphy is going to replace Weldon Sprangler, who will now be the VP of operations of Baskin and Robbins in US and Canada.
Dunkin Brands Group Inc (NASDAQ:DNKN) had a trade volume of zero at the end of the October 22 session. However, the stock still experienced a decline of 3.58%, to close at a share price of $39.57.
