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Why is Dunkin' Donuts going public now, after 61 years in business?
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3 Answers
One reason might be that Krispy Kreme is taking market share from them, so they need capital to expand and defend their territory. Another reason might be that some of the founding family want to cash out and retire. And they probably want to take advantage of a hot IPO market before it cools off, like it always does eventually.
Good reasons, Erik.
I'd also posit that McDonalds has been challenging them for quite some time and now Starbucks is conducting some re-branding toward new opportunities. It's only a matter of time before Walmart considers this segment (IMHO).
Having said that, there is possibility for independent or small scale specialty coffee organizations to ramp up their competitiveness. I'll explain. Anytime a large organization undergoes executive change, and, when founders start exiting, the mid-level management becomes distracted (usually). This presents opportunity for small and medium orgs to execute their "A Game" and incremental opportunity for customer acquisition. Unfortunately, most people fail to heed the words of Greek philosopher Heroclitus, who stated that change is the only constant in human experience. Consequent, most operators will only recognize an opportunity like this, too late.
All appropriate points mentioned by Erik and Jeffrey.
A cultural dimension may have some import as well. Ten years ago Coffee "shops" were not brands in this country as they are today. The "cafe concept" did not prevail to the extent we see in today's culture here in the U.S., which may account for some implied value to investors.
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