Dave Hoffmann is no longer Dunkin' Brands CEO after Inspire Brands completed its acquisition Tuesday, December 15, but at least he goes out on a high note. The payout for shareholders, at $106.50 a share, is 169 percent higher than the stock's low point in 2020, $39.47 on March 20.
Hoffmann owned 38,167 shares as of July 10, 2020, according to SEC documents, worth $4.06 million upon the acquisition's closing December 15. When Hoffmann was named CEO in July 2018, shares were about $73 each. In July 2016, when he abruptly left his post at McDonald's to join Dunkin' at the invitation of Nigel Travis, then CEO, shares traded at $45.
In March 2020, the starting point for COVID-19-related lockdowns in the U.S., DNKN shares fell 20 percent compared to a 12.5 percent decline in the S&P 500, according to S&P Global Market Intelligence. That left DNKN shares down more than 33 percent for the first quarter, compared to a 22 percent drop in broader indexes.
After Dunkin' confirmed in October it was in talks with Inspire, backed by private equity firm Roark Capital, shares soared 16 percent to close at $103.10 on October 26.
Hoffmann will report to Paul Brown, CEO of Inspire Brands, with the title of senior adviser, and will remain an officer. He "will help navigate the integration into Inspire," Inspire said in a press release. Scott Murphy will become head of the Inspire Beverage-Snack Category and president of Dunkin', reporting to Brown. Jason Maceda will assume the role of president for Baskin-Robbins, reporting to Murphy.
Murphy was president of Dunkin' Brands since December 2019, assuming the role from Hoffmann. Before that he was Dunkin' U.S. chief operating officer. He owned 12,242 shares as of August 2020, SEC documents said, worth $1.3 million upon closing.
Maceda was senior vice president, Baskin-Robbins U.S. & Canada. He joined Dunkin' Brands in 1998 as regional controller. He owned 4,782 shares as of August 2020, worth $509,283.
In the statement, Hoffmann said his team has "accomplished much to be proud of including the execution of our strategic plans that led to the transformation of our two beloved, iconic brands."
Along with Hoffmann, those resigning December 15 from the Dunkin' Brands board of directors were: Raul Alvarez, Linda Boff, Irene Chang Britt, Anthony DiNovi, Michael Hines, Mark Nunnelly, Roland Smith, Carl Sparks and Nigel Travis. Travis was non-executive chairman of the board, and served as CEO from January 2009 to July 2018.
Inspire CEO Paul Brown, CFO David Pipes and CAO and General Counsel Nils Okeson joined the board of directors.