Stock Story -
Coffee chain Dutch Bros (NYSE:BROS) will be reporting earnings tomorrow after market close. Here's what you need to know.
Dutch Bros beat analysts' revenue expectations by 7.6% last quarter, reporting revenues of $275.1 million, up 39.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and a solid beat of analysts' gross margin estimates.
Is Dutch Bros a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Dutch Bros's revenue to grow 26.9% year on year to $317.1 million, slowing from the 34.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dutch Bros has missed Wall Street's revenue estimates twice over the last two years.
Looking at Dutch Bros's peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. El Pollo Loco posted flat year-on-year revenue, beating analysts' expectations by 1.5%, and Wendy's reported revenues up 1.6%, falling short of estimates by 1%. El Pollo Loco's stock price was unchanged after the results, and Wendy's price followed a similar reaction.
Read the full analysis of El Pollo Loco's and Wendy's results on StockStory.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. 2024 has been a different story as mixed signals have led to market volatility, and while some of the traditional fast food stocks have fared somewhat better, they have not been spared, with share prices down 2.6% on average over the last month. Dutch Bros is down 14.7% during the same time and is heading into earnings with an average analyst price target of $41.5 (compared to the current share price of $36.5).
