Dutch Bros Stock Jumps 35% After Coffee Chain Ups Forecast

Investopedia
08 Nov 2024

Key Takeaways

  • Dutch Bros shares popped after the company posted earnings results that beat expectations.
  • The coffee chain also raised its full-year revenue guidance, now even further above Wall Street's consensus expectation.
  • Shares of Dutch Bros have gained nearly 50% in 2024.

Dutch Bros (BROS) shares skyrocketed after the company’s third-quarter results beat expectations and featured an upwardly revised forecast. 

The coffee chain said it now expects 2024 revenue between $1.255 billion and $1.26 billion, up from its previous range of $1.215 billion to $1.23 billion. Wall Street is looking for about $1.14 billion, according to Visible Alpha's consensus estimate.

Thursday’s share price surge, of more than 35%, represents a big swing from a quarter earlier, when the stock lost more than a fifth of its value despite beating expectations. Overall, shares are up nearly 50% in 2024.

For the quarter, revenue jumped 28% year-over-year to $338 million and net income rose to $21.7 million or 11 cents per share from $4.21 million or 7 cents per share a year earlier. Both figures beat the analyst consensus from Visible Alpha.

Same-store sales rose 2.7% year-over-year and transactions increased 0.8%. 

The company said it opened 38 new stores, most of them company-owned, in the past quarter, bringing its count to 950.

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