***Please make sure to do your research and consult a professional. I am not a professional and content is intended to be used and must be used for informational purposes only.****
Dunkin' Brands Group, Inc. is the holding company of Dunkin and Baskin-Robbins. When I bought Dunkin Brands stock I was looking to buy something that was adapting to COVID well. I was late on the Home Depot, Amazon, clorox ,Kroger/Publix. I didn't understand Docusign, Zoom, and equipment companies. I was nervous about Netflix but covid may have given it the lift it needed.
This is where looking at companies I was still using came in to handy. I started looking at the things I was still doing or starting to do. I noticed more streaming, more work from home (new devices/desks..), eating in, working out more, virtual meetings/communications, and to go food.
The places that seemed to still be doing business regular if not more that I frequented were Target, Walmart, Publix, Dunkin' and Starbucks. I noticed other places were also picking up business like McDonalds, Gaming and liquor stores but I don't really patronize those places. Out of those I used Dunkin the most and actually realized I was utilizing them more. This was because their app and pricing. I took a look over their stock and noticed it hadn't yet seen the run up like many of the other companies I was looking at.
I am one that typically favors buying best of breed in an industry, in this case it was Starbucks. I am also a believer of buying companies I am more familiar with, Dunkin. This put me in a spot to make a decision. I believed both would be great picks. However, Starbucks had moved up more at that point. The final straw that pushed me to land on Dunkin was it has seen revenue increases over the previous 3 years. It was investing in new concepts and had seen a huge dip from the mid 70s down to 40s and had plenty of run way to go.
What is the next stock to be looking at? Disney? Comcast (Universal)? If you are looking for value, take a look at stocks that would be poised to do well with a vaccine or going back to a new normal. Who is positioning themselves for success in the new landscape. Avoid companies that are struggling to adapt or may not make it out.
