Coffee Company May Be Interested in Acquiring Dunkin’ Donuts

Shares of Dunkin’ Donuts rose 8% on Monday based on industry rumors that JAB Holding Company was expressing interest in buying the fast-food chain’s parent company, Dunkin Brands. JAB has recently gained attention in the restaurant industry by snapping up coffee and bakery chains across the country. In only the past two years, the company has purchased Krispy Kreme, Panera Bread, Stumptown Coffee, Keurig Green Mountain and Bruegger’s.

This focus on coffee shops and bakeries marks a switch for the company, which had previously focused on high fashion brands like Jimmy Choo, Bally Shoe and Belstaff. JAB began divesting itself of its luxury properties in July when it sold Jimmy Choo to Michael Kors for $1.2 billion. Earlier this week, British chemical company Ineos announced they were purchasing Belstaff from the business group. JAB is reportedly also seeking a buyer for their Bally holdings. Helmed by the intensely private and wealthy German Reimann family, JAB is well-known for quietly purchasing subsidiaries. Through its recent acquisitions, the company has cornered a large sector of the home and retail coffee market.

Influenced by lagging sales at its Baskin-Robbins locations, Dunkin’ Brands reported below average earnings for the third quarter. Analysts estimate that Dunkin’ Brands would cost JAB at least $7 billion. With Dunkin’ Donuts under its belt, JAB would be poised to take on the might of the Starbucks corporation. As rumors of JAB Holding Company’s plans circled through the industry, Dunkin’s stock continued to rise on Tuesday, increasing by 1.6%.

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