Dutch Bros Earnings: What To Look For From BROS

Coffee chain Dutch Bros (NYSE:BROS) will be reporting earnings tomorrow afternoon. Here’s what to look for.

Dutch Bros beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $324.9 million, up 30% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA and earnings estimates.

Is Dutch Bros a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Dutch Bros’s revenue to grow 22.9% year on year to $325 million, slowing from the 33.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dutch Bros has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Dutch Bros’s peers in the traditional fast food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. El Pollo Loco posted flat year-on-year revenue, meeting analysts’ expectations, and McDonald's reported revenues up 2.7%, in line with consensus estimates. El Pollo Loco’s stock price was unchanged after the results, and McDonald’s price followed a similar reaction.

Read our full analysis of El Pollo Loco’s results here and McDonald’s results here.

There has been positive sentiment among investors in the traditional fast food segment, with share prices up 4.7% on average over the last month. Dutch Bros is up 4.6% during the same time and is heading into earnings with an average analyst price target of $40.42 (compared to the current share price of $33.07).

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