DIN The Bull and Bear Cases on Dine Brands

By Mark Kalinowski Published on August 13, 2020 at 12:00 AM

In this report we examine the bull and bear cases regarding Dine Brands (DIN; Buy, $53.56). While we maintain our Buy rating on DIN — in fact, we believe there is even more reason to be bullish on DIN following its Q2 earnings release and related conference call — it is good for investors interested in DIN to be aware of the bull and bear cases surrounding the stock, no matter what our rating on the shares is.

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SBUX Analyst Day Highlights Growth at Scale

By Mark Kalinowski Published on December 13, 2018 at 12:00 AM

Earlier today, Starbucks (SBUX; Neutral) hosted its every-two-years Analyst Meeting, this time around in New York City. In our view, the strategic path that Starbucks laid out — under the “Growth at Scale” theme — looks reasonable to us. Also, on the positive side, the transition from Starbucks being “founder-led” to “founder-inspired” — always a tricky thing to navigate for pretty much any company of size — seems to have gone relatively well, all things considered (meaning, look at examples of companies that didn’t get that transition right). On the risk side of the equation, some of the most challenging risks are to a meaningful degree outside of Starbucks’ control, with Dunkin’ (owned by Dunkin’ Brands Group [DNKN; Neutral] recently launching its revamped espresso platform nationwide in the U.S.), and privately-held Luckin Coffee — which ended 2017 with zero stores in China — now at 1,700+ units in that key market (and growing rapidly). That said, Starbucks understands that its brand is different from others in the coffee marketplace, including (but not limited to) Dunkin’ and Luckin Coffee, and will seek to further differentiate the Starbucks brand going forward. We tweak our fiscal 2019E and fiscal 2020E EPS estimates downward by $0.01 each, to $2.65 and $3.00, respectively. We reiterate our Neutral rating on SBUX, and note the following:

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