Dutch Bros tumbles after Q2 results, guidance fail to rouse

Dutch Bros

08/08/2024 15:12

** Shares of Dutch Bros  BROS.N  down 26% at $27.90 early
Thurs after coffee chain's qtrly results, outlook fail to
impress Wall Street
    ** BROS hits three-month low and tracking biggest daily pct
drop since May 12, 2022
    ** Co late Weds posted Q2 rev of $325 mln, up 30% yr/yr,
topping LSEG estimate of $317 mln
    ** Adj EPS of 19 cents, up from 13 cents a yr-ago, also beat
consensus of 13 cents
    ** For 2024, co projected rev of $1.215-$1.230 bln, up from
$1.20-$1.215 bln prior
    ** Co said expects new store openings to be at lower end of
previously communicated range of 150-165
    ** Stifel, which has "buy" rating on BROS, trims PT by $2 to
$38
    ** Co reported solid results but disappointing guidance,
Stifel says in note, adding same-store-sales outlook implies
flattish results through balance of the year
    ** Jefferies said while 2024 store unit growth will
disappoint some, it thinks the move is prudent, and stock's
current price represents an attractive buying opportunity
    ** TD Cowen lowered its PT by $3 to $47
    ** 9 of 13 brokerages rate BROS "strong buy" or "buy, rest
"hold" with median PT of $39 - LSEG
    ** With move on the session, BROS down ~12% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))