Dunkin Brands Group doubles in price on debut

The first day of stock market trading was highly successful for Dunkin Brands Group, as it made gains of 56 per cent before closing 47 per cent higher than its starting price.

According to Reuters, the Dunkin' Donuts owner could face stiff competition from rivals such as McDonald's, but the company has plenty of room for expansion.

At the end of its opening day (July 27th), the company was worth $3.5 billion, with chief executive Nigel Travis explaining to the newswire that the company intends to continue its growth in a "disciplined" manner.

"It's a very rich multiple. They're going to have to have a solid top and bottom-line growth story to justify it," noted executive vice president at food consulting firm Technomic Bob Goldin.

Wall Street Journal blogger Shira Olvide noted that the Nasdaq rolled out the red carpet for Dunkin Donuts on its debut, swapping the 'D' in its logo for the company's 'DD' letters in its signature font and colours.

Posted by Greg Secker