Dutch Bros Stock Hits 52-Week Highs: What's Going On?

Dutch Bros Inc. BROS stock hit a new 52-week high on Thursday after the company reported better-than-expected financial results and raised its full-year guidance above estimates. Here’s what you need to know.

The Details: Dutch Bros stock soared about 15% after the market closed on Wednesday following the release of the company’s third-quarter earnings, which included adjusted earnings per share of 16 cents, beating analyst estimates of 12 cents.

In addition, the company reported sales of $338.21 million, beating analyst estimates of $325.14 million. Dutch Bros’ top-line results were up about 28% year-over-year. The company also reported company-operated shop revenues of $308.3 million, representing a 30% year-over-year increase.

The company reported adjusted EBITDA of $63.8 million, compared to $53 million in the same period last year. Dutch Bros also reported adjusted selling, general and administrative expenses totaling $57.5 million.

Throughout the third quarter, Dutch Bros opened 38 new stores across 11 states with 33 of those stores being company-operated.

“We believe our refined real estate strategy is working, as we are seeing strong new shop productivity as we have shifted our development focus and elevated our site selection process,” said Dutch Bros CEO Christine Barone.

“We continue to demonstrate remarkable consistency in our shop opening cadence with 38 shop openings in the third quarter. We are making major investments in our development and construction teams and our 2025 pipeline is strong, positioning us to accelerate new shop growth.”

Dutch Bros also raised its guidance for the full year above estimates. The company now expects revenue between $1.25 billion and $1.26 billion, versus analyst estimates of $1.23 billion. Dutch Bros previously guided for revenue of $1.21 billion to $1.23 billion.

Additionally, Dutch Bros said it expects adjusted EBITDA of $215 million to $220 million, up from its prior outlook of $200 million to $210 million.

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Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• TD Cowen analyst Andrew Charles maintained a Buy rating on Dutch Bros and raised the price target from $47 to $53.
• Wedbush analyst Nick Setyan maintained an Outperform rating on Dutch Bros and raised the price target from $45 to $55.
• UBS analyst Dennis Geiger maintained a Buy rating on Dutch Bros and raised the price target from $39 to $44.
• Baird analyst David Tarantino maintained a Neutral rating on Dutch Bros and raised the price target from $37 to $46.
• JPMorgan analyst John Ivankoe maintained an Overweight rating and raised the price target from $44 to $48.

BROS Price Action: At the time of writing, Dutch Bros stock was up 32.7% at $46.38, according to data from Benzinga Pro.

Image: Courtesy of Dutch Bros Inc.