Dutch Bros (BROS) closed at $61.74 in the latest trading session, marking a -1.25% move from the prior day. This move lagged the S&P 500's daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 1.01%, while the tech-heavy Nasdaq depreciated by 0.14%.
Shares of the drive-thru coffee chain operator and franchisor have depreciated by 21.02% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 8.04% and the S&P 500's loss of 6.22%.
The investment community will be paying close attention to the earnings performance of Dutch Bros in its upcoming release. It is anticipated that the company will report an EPS of $0.12, marking a 33.33% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $342.71 million, showing a 24.58% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.62 per share and revenue of $1.58 billion, which would represent changes of +26.53% and +23.43%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Dutch Bros. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% lower. Dutch Bros presently features a Zacks Rank of #3 (Hold).
Investors should also note Dutch Bros's current valuation metrics, including its Forward P/E ratio of 100.23. Its industry sports an average Forward P/E of 22.99, so one might conclude that Dutch Bros is trading at a premium comparatively.
Also, we should mention that BROS has a PEG ratio of 2.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Restaurants industry stood at 2.17 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Dutch Bros Inc. (BROS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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