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Dutch Bros (BROS) Surpasses Market Returns: Some Facts Worth Knowing

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Dutch Bros (BROS - Free Report) closed the latest trading day at $58.39, indicating a +1.35% change from the previous session's end. This change outpaced the S&P 500's 0.79% gain on the day. Meanwhile, the Dow experienced a rise of 0.78%, and the technology-dominated Nasdaq saw an increase of 0.64%.

Coming into today, shares of the drive-thru coffee chain operator and franchisor had lost 7.79% in the past month. In that same time, the Retail-Wholesale sector lost 3.65%, while the S&P 500 lost 3.56%.

The upcoming earnings release of Dutch Bros will be of great interest to investors. In that report, analysts expect Dutch Bros to post earnings of $0.10 per share. This would mark year-over-year growth of 11.11%. Meanwhile, our latest consensus estimate is calling for revenue of $343.62 million, up 24.91% from the prior-year quarter.

BROS's full-year Zacks Consensus Estimates are calling for earnings of $0.62 per share and revenue of $1.58 billion. These results would represent year-over-year changes of +26.53% and +23.5%, respectively.

Investors might also notice recent changes to analyst estimates for Dutch Bros. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.85% downward. Currently, Dutch Bros is carrying a Zacks Rank of #3 (Hold).

Investors should also note Dutch Bros's current valuation metrics, including its Forward P/E ratio of 93.68. This valuation marks a premium compared to its industry's average Forward P/E of 21.48.

We can additionally observe that BROS currently boasts a PEG ratio of 2.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.03.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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