Dunkin' runs on coffee more than doughnuts, which means its IPO-fueled expansion plans are likely to heat up the fast-food java battle, particularly with McDonald's Corp.

On Tuesday evening, the initial public offering of Dunkin' Brands Group Inc. was priced at $19 a share, raising $427.5 million. The franchise-centric company, which houses both the Dunkin' Donuts and Baskin-Robbins chains, plans to use the funds to pay down debt and move beyond its Northeastern roots. Though Dunkin' doesn't have the same level of brand recognition...