Dunkin' Brands (DNKN) has become a wildly popular on the go coffee brand. Its stock may be undervalued based on its reliable income streams and the residual income valuation model.
Financial Success
Not only has Dunkin' Donuts been able to establish itself as a global and powerful coffee brand, the company has been able to succeed financially through its franchising strategy. The company has created several very reliable revenue streams including franchise fees/royalty income, rent revenue, ice cream and other product sales, sales from company operated restaurants, and other. See the image below.
