Following their current increase in share prices, the Dunkin’ Brands Group has stated that Dunkin’ Donuts will use cage-free eggs in the future, expecting to have a full use of these types of eggs by 2025.
Even if the company suffered a decrease in shares in the past three months, of about 14.9%, this has started to calm down, with shares having a 1.7% increase as of the 7th of December. Shares have reached a maximum point of $42.07 during the day, with the market closing in on $42. Over 550 million shares were traded, resulting in a substantial increase in price compared to their previous value being marked at $41.29.
The Dunkin’ Donuts brand of products is one of the largest food producers and distributors in the US, ranking on the 6th place in the top 10 list of restaurant operators in the North America region. This doesn’t come as a big surprise, considering that most people opt to start their day with a donut and a coffee.
Cage-free eggs refer to a type of chicken confinement. The most common way is known as battery-caging, with chickens being held stationary in cages, forced to lay their eggs in a periodic way through various processes. The Humane Society started the move of using cage-free systems, letting the hens run free in large confined areas, laying their eggs in nests in a more natural way.
This is both a more humane way to treat hens as well as giving a more natural way of laying eggs. This type of movement has been seen in other animal production markets as well, with the farms slowly trying to achieve a more natural and humane approach when processing their products.
Leaving the chickens run free through their confined area, flapping their wings, or simply walk from one corner to another, removes the possibility of muscle atrophy as well as other health issues to occur.
From a market value viewpoint, Dunkin’ Donuts has gained a tremendously positive view from investors because of their recent announcement of the cage-free system. Investors are currently tagging the company’s shares as a “Buy” with a price target reaching up to $51.78.
The Dunkin’ Brands Group has a current total market value of $3.84 billion, a little behind their 5th place leader, 3G Capital Partners, owners of the Burger King chain. This value is expected to increase in the coming years as the demand for cage-free eggs becomes higher.
Even so, the announcement stating that Dunkin’ Donuts will use cage-free eggs in the future will not provide a massive boost to the company, allowing them to overthrow their larger competitors, McDonalds and Starbucks, in the stock market. But the donuts will still remain a common treat for people in a hurry to get to work, or for those who just want something sweet to start their day.