Dutch Bros (BROS) Rises But Trails Market: What Investors Should Know

Company Performance - Dutch Bros shares have gained 0.28% over the past month, outperforming the Retail-Wholesale sector's loss of 0.31% but lagging behind the S&P 500's gain of 0.43% [1] - The company is expected to report earnings per share (EPS) of $0.12, which represents a decline of 7.69% from the prior-year quarter, while revenue is projected to be $316.08 million, reflecting an increase of 26.49% from the year-ago period [8] Financial Estimates - The Zacks Consensus Estimates predict earnings of $0.36 per share and revenue of $1.22 billion for the entire fiscal year, indicating increases of +20% and +26.81%, respectively, from the previous year [2] - The Zacks Consensus EPS estimate has remained unchanged over the last 30 days, and Dutch Bros currently holds a Zacks Rank of 1 (Strong Buy) [10] Valuation Metrics - Dutch Bros is trading at a Forward P/E ratio of 109.57, significantly higher than the industry average Forward P/E of 19.49, indicating a premium valuation [4] - The company has a PEG ratio of 4.01, compared to the Retail - Restaurants industry's average PEG ratio of 1.91, suggesting that the stock is priced for high growth expectations [11] Industry Context - The Retail - Restaurants industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 157, placing it in the bottom 38% of over 250 industries [5] - The Zacks Industry Rank measures the strength of industry groups, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [12]