Dutch Bros (BROS) Dips More Than Broader Market: What You Should Know

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Dutch Bros (BROS) closed the most recent trading day at $34.75, moving -1.05% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.05%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq added 0.18%.

The drive-thru coffee chain operator and franchisor's stock has climbed by 1.44% in the past month, falling short of the Retail-Wholesale sector's gain of 1.71% and the S&P 500's gain of 2.76%.

Market participants will be closely following the financial results of Dutch Bros in its upcoming release. The company plans to announce its earnings on November 6, 2024. It is anticipated that the company will report an EPS of $0.11, marking a 21.43% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $324.45 million, reflecting a 22.66% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.39 per share and a revenue of $1.23 billion, signifying shifts of +30% and +27.1%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Dutch Bros. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.04% higher. Dutch Bros currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Dutch Bros is presently being traded at a Forward P/E ratio of 89.07. This denotes a premium relative to the industry's average Forward P/E of 23.93.

Meanwhile, BROS's PEG ratio is currently 2.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants was holding an average PEG ratio of 2.18 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons of all 250+ industries.