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Factors Setting the Tone for Dutch Bros (BROS) Q1 Earnings
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Dutch Bros Inc. (BROS - Free Report) is scheduled to report first-quarter 2022 results on May 11, after the closing bell. In the previous quarter, the company’s earnings matched the Zacks Consensus Estimate of 2 cents.
How are Estimates Placed?
The Zacks Consensus Estimate for first-quarter earnings is estimated at a breakeven level. In the past 90 days, the company’s earnings have been revised downward from 3 cents to a breakeven.
For revenues, the consensus mark is pegged at $144.2 million.
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Dutch Bros’ first-quarter performance is likely to have benefited from strong consumer demand, new shop openings and expansion into new markets. During the previous quarter’s earnings call, the company stated to have opened 25 new shops (through February 2022) and reported strong feedback with regards to the same. Emphasis on identifying and securing new sites for attractive returns along with store developmental investments is likely to have aided the company’s performance in the to-be-reported quarter.
Focus on the Dutch rewards program is likely to have driven the company’s first-quarter top line. During the previous quarter’s earnings call, the company reported that the average ticket for Dutch rewards members (for the last six months) was 3% higher than for non-rewards members. The company witnessed solid customer adoption as more customers loaded funds into their accounts. Given the focus on Stored Value features, custom offers and personalized messaging, the momentum is likely to have continued in the first quarter.
However, coronavirus-induced staffing and labor shortages are likely to have dented the company’s performance in the first quarter. This and rising consumer inflation levels are likely to have impacted margins in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Dutch Bros this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. But that's not the case here.
Earnings ESP: Dutch Bros has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Consumer Staples space that investors may consider, as our model shows that these also have the right combination of elements to post an earnings beat:
US Foods Holding Corp. (USFD - Free Report) has an Earnings ESP of +12.34% and a Zacks Rank #3.
Shares of US Foods have declined 0.6% so far this year. USFD’s earnings surpassed the consensus mark twice in the trailing four quarters, matched once and missed once, the average surprise being 33.6%.
Tilray Brands, Inc. (TLRY - Free Report) has an Earnings ESP of +5.71% and a Zacks Rank #3.
Shares of Tilray Brands have declined 37.6% so far this year. TLRY’s earnings topped the consensus mark twice but missed the same on two occasions. The company has a trailing four-quarter earnings surprise of 44.8%, on average.
Altria Group, Inc. (MO - Free Report) has an Earnings ESP of +0.14% and a Zacks Rank #3.
Shares of Altria Group have gained 16.6% so far this year. MO’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 1.2%.
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Factors Setting the Tone for Dutch Bros (BROS) Q1 Earnings
Dutch Bros Inc. (BROS - Free Report) is scheduled to report first-quarter 2022 results on May 11, after the closing bell. In the previous quarter, the company’s earnings matched the Zacks Consensus Estimate of 2 cents.
How are Estimates Placed?
The Zacks Consensus Estimate for first-quarter earnings is estimated at a breakeven level. In the past 90 days, the company’s earnings have been revised downward from 3 cents to a breakeven.
For revenues, the consensus mark is pegged at $144.2 million.
Dutch Bros Inc. Price and EPS Surprise
Dutch Bros Inc. price-eps-surprise | Dutch Bros Inc. Quote
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Dutch Bros’ first-quarter performance is likely to have benefited from strong consumer demand, new shop openings and expansion into new markets. During the previous quarter’s earnings call, the company stated to have opened 25 new shops (through February 2022) and reported strong feedback with regards to the same. Emphasis on identifying and securing new sites for attractive returns along with store developmental investments is likely to have aided the company’s performance in the to-be-reported quarter.
Focus on the Dutch rewards program is likely to have driven the company’s first-quarter top line. During the previous quarter’s earnings call, the company reported that the average ticket for Dutch rewards members (for the last six months) was 3% higher than for non-rewards members. The company witnessed solid customer adoption as more customers loaded funds into their accounts. Given the focus on Stored Value features, custom offers and personalized messaging, the momentum is likely to have continued in the first quarter.
However, coronavirus-induced staffing and labor shortages are likely to have dented the company’s performance in the first quarter. This and rising consumer inflation levels are likely to have impacted margins in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Dutch Bros this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. But that's not the case here.
Earnings ESP: Dutch Bros has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Staples space that investors may consider, as our model shows that these also have the right combination of elements to post an earnings beat:
US Foods Holding Corp. (USFD - Free Report) has an Earnings ESP of +12.34% and a Zacks Rank #3.
Shares of US Foods have declined 0.6% so far this year. USFD’s earnings surpassed the consensus mark twice in the trailing four quarters, matched once and missed once, the average surprise being 33.6%.
Tilray Brands, Inc. (TLRY - Free Report) has an Earnings ESP of +5.71% and a Zacks Rank #3.
Shares of Tilray Brands have declined 37.6% so far this year. TLRY’s earnings topped the consensus mark twice but missed the same on two occasions. The company has a trailing four-quarter earnings surprise of 44.8%, on average.
Altria Group, Inc. (MO - Free Report) has an Earnings ESP of +0.14% and a Zacks Rank #3.
Shares of Altria Group have gained 16.6% so far this year. MO’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 1.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.