In what will be one of the most anticipated offerings of 2011, Dunkin' Brands (DNKN) is set to bring its IPO to market Tuesday, in a deal expected to reach nearly $380 million.
Morningstar senior analyst Joscelyn MacKay believes the deal is appropriately priced, with a fair value estimate of $17 per share.
However, she thinks the appetite for restaurant growth stories could push the offering above the current range. Her full take on Dunkin is below:
Dunkin' Brands (DNKN) - Capital Sought: $378 million; Offer Range: $16-$18; Fiscal 2010 Revenue: $577.1 million; Fiscal 2010 Operating Margin 33.6%; MorningstarFair Value Estimate: $17 per share