Dunkin' Donuts 2012 Annual Report Download - page 30

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If we or our franchisees or licensees are unable to protect our customers' credit card data, we or our franchisees could be
exposed to data loss, litigation, and liability, and our reputation could be significantly harmed.
Privacy protection is increasingly demanding and the introduction of electronic payment methods exposes us and our
franchisees to increased risk of privacy and/or security breaches as well as other risks. In connection with credit card sales, our
franchisees (and we from our company-operated restaurants) transmit confidential credit card information by way of secure
private retail networks. Although we use private networks, third parties may have the technology or know-how to breach the
security of the customer information transmitted in connection with credit card sales, and our franchisees' and our security
measures and those of our technology vendors may not effectively prohibit others from obtaining improper access to this
information. If a person is able to circumvent these security measures, he or she could destroy or steal valuable information or
disrupt our operations. Any security breach could expose us to risks of data loss, litigation, liability, and could seriously disrupt
our operations. Any resulting negative publicity could significantly harm our reputation and could materially and adversely
affect our business and operating results.
Unforeseen weather or other events may disrupt our business.
Unforeseen events, including war, terrorism and other international, regional or local instability or conflicts (including labor
issues), embargos, public health issues (including tainted food, food-borne illnesses, food tampering, or water supply or
widespread/pandemic illness such as the avian or H1N1 flu), and natural disasters such as earthquakes, tsunamis, hurricanes, or
other adverse weather and climate conditions, whether occurring in the U.S. or abroad, could disrupt our operations or that of
our franchisees, or suppliers; or result in political or economic instability. For example, in 2012, Hurricane Sandy resulted in
the temporary closing of a number of Dunkin' Donuts restaurants along the east coast, 15 of which remained closed as of
December 29, 2012. These events could reduce traffic in our restaurants and demand for our products; make it difficult or
impossible for our franchisees to receive products from their suppliers; disrupt or prevent our ability to perform functions at the
corporate level; and/or otherwise impede our or our franchisees' ability to continue business operations in a continuous manner
consistent with the level and extent of business activities prior to the occurrence of the unexpected event or events, which in
turn may materially and adversely impact our business and operating results.
Risks related to our common stock
Our stock price could be extremely volatile and, as a result, you may not be able to resell your shares at or above the price
you paid for them.
Since our initial public offering in July 2011, the price of our common stock, as reported by NASDAQ, has ranged from a low
of $23.24 on December 15, 2011 to a high of $40.00 on January 31, 2013. In addition, the stock market in general has been
highly volatile. As a result, the market price of our common stock is likely to be similarly volatile, and investors in our common
stock may experience a decrease, which could be substantial, in the value of their stock, including decreases unrelated to our
operating performance or prospects, and could lose part or all of their investment. The price of our common stock could be
subject to wide fluctuations in response to a number of factors, including those described elsewhere in this prospectus and
others such as:
• variations in our operating performance and the performance of our competitors;
• actual or anticipated fluctuations in our quarterly or annual operating results;
• publication of research reports by securities analysts about us or our competitors or our industry;
• our failure or the failure of our competitors to meet analysts' projections or guidance that we or our competitors may
give to the market;
• additions and departures of key personnel;
• strategic decisions by us or our competitors, such as acquisitions, divestures, spin-offs, joint ventures, strategic
investments or changes in business strategy;
• the passage of legislation or other regulatory developments affecting us or our industry;
• speculation in the press or investment community
• changes in accounting principals
• terrorist acts, acts of war or periods of widespread civil unrest;
• natural disasters and other calamities; and
• changes in general market and economic conditions.