Dunkin Donuts IPO shares prediction, Successful growth stocks

Dunkin Donuts IPO shares prediction, Successful growth stocks ; Dunkin was purchased in 2006 from liquor company Pernod Ricard S.A. (PDRDY, RI.FR) for $2.4 billion in cash by private equity firms Bain Capital Partners LLC, The Carlyle Group and Thomas H. Lee Partners.

Both the Dunkin' Donuts and the Baskin Robbins brands have been around since the 1940s in the U.S., and the company has expanded its franchise locations internationally as far as the Middle East and Japan.

The Massachusetts-based company, which franchises its namesake coffee-and-donut restaurants and Baskin Robbins ice-cream shops, has been well received by investors over the past week, according to analysts.

Three days ago TheStreet posted an article titled "Don't Buy Dunkin' Donuts IPO: Value Analyst." Yesterday, they reported: "Dunkin Donuts IPO: Shares Soar."

You can't blame them for being so cautious about the recently introduced Dunkin' Donuts IPO Stock Symbol (DNKN). In fact, many analysts still aren't quite sure what to make of it.

Dunkin' Brands owns the Dunkin' Donuts franchise and the ice cream chain Baskin Robins. Initial stock price was set at $19/share when it was offered late on Tuesday, it opened at $25 on Wednesday and closed at $27.85/share. Friday's low currently stands at $28.01/share.

So far, so good. But some analysts wonder if investors are simply over-enthusiastic, and whether $19/share might have been overpriced to start with. On the other hand, the company has a fair share of potential growth with further expansion of the franchise west of theMississippi.

Y Charts offers this bit of wisdom: "Successful growth stocks, even the ones that go on to make the most astronomical share price gains, are rarely made in the first few months of trading. Especially in the restaurant sector, where investors over-enthusiasm tends to swell PEs."

To help you analyze, here's a list of restaurant stocks that have seen institutional buying over the recent quarter. We found that of the 28 restaurant industry stocks with market caps over $300 million, 18 have seen net institutional purchases over the current quarter read Top Restaurant stocks with the most significant buying july 2011

Do you think Dunkin' Donuts cold follow along that path? Or is this another Chipolte in the making, which has grown an impressive 650% since its initial offering?