A Slam Dunk

Dunkin' Donuts and Ice Cream

Sugar wins in our society. Donuts, Ice Cream and Latte are still winners and so is this company that is even more popular internationally than it is domestically. A little side note. Do you know the difference in an international and a global investment? You got it. Dunkin is global and Samsung is international. The difference is domicile. Dunkin is domiciled in the US but does business globally. Samsung however is domiciled in Korea, thus it is international to us. It would be global to Koreans.

The company has more than 20,000 Dunkin Donut and 7,600 Baskin Robbins restaurants in 40 countries. That is impressive.

1. Sales growth is 7% and is a small capitalization company with sales about $800 million. That is low but in the zone.

2. Pre-tax profit on sales is 25% and leads the industry.

3. It has earned on equity at a rate of 30.4%. It also leads the industry on this statistic.

4. Earnings per share is high with 30.4%. It's ok in my opinion.

5. The stock has a 4.4 to 1 upside downside ratio.

6. It also is in the high of the buy zone.

We will buy 100 shares today at $5,273.00

DNKN cost basis $5,273.00 value is $5,146.00 = - $127.00 (01/08/2017) update. 
CGI cost basis $769.00 value is $865.00 = +96.00 
STRC cost basis $7,719 value is $7,938.00 = +$219.00 
LULU cost basis $6,855.00 value is $6,827.00 = -$28.00
GNTX cost $1,856.00 current $2,052.00 .... +196.00
BNS paid $5,408.00 value $5,788.00 = +$380.00
TSCO paid $6,667 value $7,516.00. = + $849.00
KMX paid $5,444 value $6,540.00 = + $1096.00
LCI paid $3,238 value $2,225 = - $1,013.00
JLL paid $9,699 value $10,673.00 = + $974.00

Looks like a gain of $2,642 since September. That is a 4.99% return in a quarter. Not bad annualized. We will see. LCI is still hurting our portfolio. LULU and DNKN are too new. WE will stop at 15 shares.