The coffee chain still has a lot of growth potential. Shares of coffee chain Dutch Bros (BROS -1.32%) sank nearly 20% following its second-quarter earnings report as guidance disappointed investors. The decline pushed the stock into negative territory for the year. Was the sell-off an overreaction? And should investors scoop up the stock on the dip? Raised guidance not enough In the second quarter, revenue climbed 30% year over year to $324.9 million, which topped the analyst consensus by over $7 million. A ...

Although the market didn't like Dutch Bros' second-quarter earnings, four critical reasons for optimism make the company a compelling long-term buy. Upstart coffee and hand-crafted beverages chain Dutch Bros (BROS 0.46%) released its earnings report on Aug. 7. The company grew sales and adjusted earnings per share (EPS) by 30% and 46%, respectively, topping analysts' expectations. Despite these impressive results, the market sent Dutch Bros' stock down roughly 21% as the company admitted that its new store ...

bymuratdeniz/E+ via Getty Images Restaurant Stock Hammered in Q3 I gave Dutch Bro's (NYSE:BROS) stock a buy rating when I wrote about it in June. Following its Q2 earnings, the stock was down more than 25% at the opening, but the loss gradually decreased to about 20% at the close. Unfortunately, restaurant stocks have suffered greatly this quarter as a result of the 350 basis point decrease in restaurant-level margin reported by Kura Sushi (NYSE:KRUS) due to an increase in labor costs in California. The mar ...

Growing pains are normal for young growth stocks. Restaurant stocks plunged recently after reports warned that people might not be spending as much as they usually do at their favorite restaurants. But what about where they get their morning caffeine fix? Coffee chain Dutch Bros (BROS -2.42%) is down 10% over the past month and 50% from its highs. The market didn't love its most recent update, but investors should take the long view. Here's why Dutch Bros could be a top long-term buy. It's all about a great ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about Dutch Bros (BROS) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Dutch Bros currently has an average brokerage recommendatio ...

The company is slowing down its unit growth. Shares of Dutch Bros (BROS -19.84%) slumped 20% this week, according to data from S&P Global Market Intelligence. The upstart coffee stand chain that is undergoing rapid expansion across the country posted strong revenue growth but guided for a slowdown in future coffee shop openings in its second-quarter earnings report. As of the close on Aug. 8, 2024, the stock was down 19.2% since Friday's close. Here's why Dutch Bros stock slipped again this week. Solid sale ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 10-Q ______________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Title of Each Class Trading Symbol Name of Exchange on which Registered Class A Common Stock, par value $0.00001 per share BROS The New York Stock Exchange For the Quarterly Period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECU ...

The coffee chain delivered strong results, but there was one blemish. Shares of Dutch Bros (BROS -22.06%), the coffee chain known for its drive-thru business model, were taking a dive today after the company reported solid results in its second-quarter earnings. However, moderating new store growth spoiled otherwise strong results. As of 1:20 p.m. ET, the stock was up 20.8%. Dutch Bros posted strong results For the second quarter, Dutch Bros delivered healthy results, with same-store sales up 4.1% and total ...

Key Takeaways Shares of Dutch Bros lost more than a fifth of their value in intraday trading Thursday, a day after the coffee chain projected low-single-digit 2024 same-store sales growth. The coffee chain's second-quarter results beat analysts' estimates, but its same-store sales outlook was deemed "underwhelming" by Wedbush analysts. Analysts said Dutch Bros could see sales decrease in the second half of the year. Shares of Dutch Bros (BROS) lost more than a fifth of their value in intraday trading Thursd ...

Financial Data and Key Metrics - Revenue increased by 30% YoY to $325 million, and adjusted EBITDA grew by 34% YoY to $65 million [5] - Same-shop sales rose by 4.1%, and average unit volumes (AUVs) were $2 million, consistent with the previous quarter's record [5] - Company-operated shop contribution margin reached 30.8%, a 50 basis points increase YoY [21] - Adjusted SG&A was 14.6%, 100 basis points lower than Q2 2023 [22] - Adjusted EBITDA margin increased to 20.1%, up 70 basis points YoY [22] Business Line Data and Key Metrics - The company opened 36 new shops in Q2, marking the 12th consecutive quarter of 30 or more new shop openings [5] - The Dutch Rewards program accounted for approximately 67% of transactions in Q2 [11] - Mobile order capabilities were rolled out to approximately 200 shops by the end of July, with plans to expand to the majority of shops by the end of 2024 [12][13] Market Data and Key Metrics - The company reached a milestone of opening its 900th shop in Frisco, Texas [6] - Texas now has nearly 200 shops, a significant achievement given the market opened just over 3 years ago [15] - The company is seeing strong performance in newer markets with lower brand awareness, particularly due to increased paid advertising [10] Company Strategy and Industry Competition - The company is focused on innovation, with successful product launches like Boba and Protein Belk, which have been added to the permanent menu [9] - The company is investing in mobile order capabilities to improve throughput and customer experience, leveraging its double drive-thru setups and walk-up windows [13][14] - The company is refining its real estate strategy, focusing on higher AUV potential sites and more capital-efficient lease arrangements [16][17] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, raising both revenue and adjusted EBITDA guidance for the year [6] - The company is navigating an uncertain consumer environment but remains focused on delivering innovative products and exceptional service [5][27] - Management highlighted the importance of the Dutch Rewards program and mobile order capabilities in driving future growth [11][12] Other Important Information - The company added two independent directors to its Board of Directors, G.J. Hart and Todd Penegor, both with extensive industry experience [18] - The company is transitioning towards a self-funding business model, with a focus on reducing capital intensity and improving cash flow from operations [25][26] Q&A Session Summary Question: Clarification on same-shop sales guidance and mobile ordering impact [29] - Management clarified that the same-shop sales guidance does not imply negative comps in the back half of the year, but rather reflects the roll-off of pricing actions and increased promotional activities [32][33] - Mobile ordering is still in early stages, with a focus on maintaining customer service quality while redeploying labor to enhance customer interactions [30][31] Question: Impact of mobile ordering on same-store sales guidance [35] - Management indicated that mobile ordering is expected to be a larger driver in 2025, with the current rollout being gradual to ensure operational readiness [36][37] Question: Unit development and future shop design [38] - Management emphasized the focus on higher AUV potential sites and reducing per-unit shop CapEx, with 2024 potentially being a high watermark for new shop development costs [39][40] - The company is exploring opportunities to improve throughput and shop design, but no specific redesign plans were shared [41][42] Question: Same-store sales guidance and consumer environment [46] - Management expects average check growth to settle into a flattish range, with increased promotional activities offsetting some of the price roll-off [46][47] Question: Consumer behavior and competitive intensity [79] - Management noted stable behavior among rewards members and no significant changes in add-ons or modifier usage, indicating resilience in customer engagement despite competitive pressures [80][81] Question: Increased SG&A guidance and cost drivers [83] - The increase in SG&A guidance is driven by investments in paid media, support center roles, and performance-related compensation [83] Question: Rewards program and mobile ordering success metrics [88][89] - Management highlighted the importance of operational metrics for mobile ordering, particularly how it impacts Broistas and customer interactions, with early results being positive [90]