Coffee chain Dutch Bros (NYSE:BROS) will be reporting results this Wednesday afternoon. Here’s what investors should know.
Dutch Bros beat analysts’ revenue expectations last quarter, reporting revenues of $550.9 million, up 32.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance beating analysts’ expectations.
Is Dutch Bros a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Dutch Bros’s revenue to grow 29.6% year on year, improving from the 25.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Dutch Bros has a history of exceeding Wall Street’s expectations.
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. Starbucks’s revenues decreased 4.5% year on year, missing analysts’ expectations by 0.9%, and Domino's reported revenues up 3.4%, topping estimates by 0.9%. Starbucks traded down 1.6% following the results while Domino's was also down 4.8%.
Read our full analysis of Starbucks’s results here and Domino’s results here.
There has been positive sentiment among investors in the traditional fast food segment, with share prices up 15% on average over the last month. Dutch Bros is up 14.7% during the same time and is heading into earnings with an average analyst price target of $65.32 (compared to the current share price of $43.84).
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