Donuts might not be the healthiest snack, but that doesn’t stop them from being addictively delicious. These tasty morsels of sugar, dough, and more sugar come in countless flavors and a variety of shapes/sizes. They’re best enjoyed during breakfast, but donuts for dinner sounds like something a respectable adult can and should eat, right?
Best of all, donuts can be publicly traded on the stock market. As in, you can invest in donuts with your hard-earned money. While you can’t buy stock in donuts as you would livestock, you can invest directly in donut-based companies.
If this sounds like a tasty idea to you but you don’t know where to start, fear not! We put together a fresh and hot sample of a half-dozen donut-centric stocks for your enjoyment. Try not to
eat invest in them all at once.
North American Donut Stocks
You can’t have a list of donut companies without Dunkin’ Donuts ($DNKN). This multi-billion-dollar is the single-largest seller of donuts and other baked goods on the planet, with 12,000 restaurants worldwide and millions of daily customers. Dunkin’s parent company, Dunkin Brands, also owns Baskin-Robins, which doesn’t sell donuts but is just as delicious. The company is currently up 12.59% since the start of 2017, and up 35.26% since this time last year. This means they’ve outperformed the S&P 500, or the “market average.”
Restaurant Brands International ($QSR) might sound like a generic company, but their products are far from boring. Aside from owning Burger King and Popeyes, Canada’s RBI is also home to Tim Hortons, home of the most delicious fast-food donuts on the planet. (If you’ve never been to a Tim Hortons, stop reading right now and go to the nearest location.) RBI’s stock, which is up 28.46% and 48.2% in the last five months and year, respectively, is also performing better than the market average. It’s worth noting that a lot of this success comes from all of RBI’s brands, not just Tim Hortons.
Donuts from Down Under
Donut King is kind of like Dunkin’ Donuts, but they also sell ice cream, milkshakes and hot dogs. There are 360 Donut King locations scattered around Australia and New Zealand. The company’s parent organization, Retail Food Group, owns hundreds of locations for their bakery, coffee house, and pizzeria chains, as well. RFG’s stock ($RFG) trades on the Australian Securities Exchange, though they’re down 25.65% since the beginning of the year.
Store-Bought Donuts Are Donuts, Too
Buying donuts in the store isn’t as good as getting them fresh from your local bakery. Still, millions of people buy these tasty treats at their local supermarkets or corner stores. Entenmann’s (a personal favorite) makes donuts and other store-bought baked goods as a subsidiary of Bimbo Bakeries ($BIMBO). Sara Lee, owned by Tyson’s Hillshire Brands ($TSN) makes a few donut-based products and sells them in nearly every North American grocery. Tastykake’s ($TBC) powdery treats are mostly found on the East Coast, though they’re part of major food distributor Flowers Foods ($FLO).
Are These Stocks Worth Your Time and Money?
All three store-bought donut brands we mentioned are subsidiaries of much larger companies. How they perform will have a small but decent impact on their big brother’s overall revenue. Dunkin’ and RBI, however, rely heavily on the revenue from their donut-selling chains and franchisees. Their stocks performed really well in the last few years, and demand for donuts and other baked goods apparently isn’t slowing down.
If you want to invest in this delicious doughy snack, you might want to look at $QSR and $DNKN. Just be sure to do your research before you spend a single dime. If investing in donuts sounds rather bitter to you, simply invest your money elsewhere.