Coffee chain Dutch Bros (NYSE: BROS) will be reporting earnings this Wednesday after market close. Here’s what you need to know.
Dutch Bros beat analysts’ revenue expectations last quarter, reporting revenues of $464.4 million, up 30.8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ same-store sales estimates and an impressive beat of analysts’ EBITDA estimates.
Is Dutch Bros a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Dutch Bros’s revenue to grow 26.6% year on year, slowing from the 28% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Dutch Bros has a history of exceeding Wall Street’s expectations.
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. Starbucks’s revenues decreased 1.4% year on year, beating analysts’ expectations by 1.5%, and Yum China reported revenues up 12.6%, topping estimates by 4.2%. Starbucks traded up 1.6% following the results while Yum China was also up 5.1%.
Read our full analysis of Starbucks’s results here and Yum China’s results here.
There has been positive sentiment among investors in the traditional fast food segment, with share prices up 2.4% on average over the last month. Dutch Bros is down 4.1% during the same time and is heading into earnings with an average analyst price target of $80.08 (compared to the current share price of $65.30).
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