Dutch Bros Stock Climbs After Blockbuster Q1 Results

Dutch Bros Inc. BROS shares are trading higher Wednesday after the company posted better-than-expected first-quarter financial results and raised its full-year revenue guidance. 

The Details:

Dutch Bros reported quarterly earnings of 9 cents per share which beat the analyst consensus estimate of 2 cents by 350%.

Quarterly sales clocked in at $275.1 million, beating the analyst consensus estimate of $254.5 million by 8.09% and representing a 39.46% increase over sales of $197.27 million from the same period last year.

The company delivered 10% same shop sales growth and tied its record for new shop openings. Company-operated shop revenues increased 43.3% to $248.1 million, as compared to $173.2 million in the same period of 2023.

Dutch Bros also announced it has selected Olo, Inc. OLO to enable ordering and payment through its mobile app for the first time across all of its locations nationwide.

“We are pleased with our performance in the first quarter – we delivered exceptional results and witnessed the momentum we saw leaving 2023 continue into Q1. Headlining Q1 performance was 10.0% system same shop sales growth, the strongest single quarter since Q4 2021, and 39% year-over-year growth in revenue to $275 million,"  said Christine Barone, CEO of Dutch Bros. 

Outlook: 

Dutch Bros revised its full-year 2024 revenue outlook from between $1.19 billion and $1.205 billion to between $1.2 billion and $1.215 billion, versus the $1.2 billion estimate. The company expects total system shop openings in 2024 to remain in the range of between 150 and 165. 

Wedbush analyst Nick Setyan maintained Dutch Bros with an Outperform and raised the price target from $37 to $39 following the print. 

Related News: Reddit Shares Soar On First Post-IPO Q1 Results, Strong Q2 Guidance

How To Buy BROS Stock:

By now you're likely curious about how to participate in the market for Dutch Bros – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Dutch Bros, which is trading at $30.62 as of publishing time, $100 would buy you 3.27 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

BROS Price Action: According to Benzinga Pro, Dutch Bros shares are up 12% at $31.82 at the time of publication Wednesday.

Image: Chris from Pixabay