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The Zacks Consumer Staples sector has fared better than most in 2022, down roughly 7% and widely outperforming the general market.
Companies in the sector have the advantageous ability to generate revenue in the face of many economic situations, helping explain why it’s been a brighter spot in a dim market.
A famous company in the sector, Dutch Bros, Inc. (BROS - Free Report) , is on deck to unveil quarterly earnings on November 9th, after the market close.
Dutch Bros Inc. is an operator and franchisor of drive-thru shops focusing on serving high-quality, hand-crafted beverages with unparalleled speed and superior service.
Currently, the beverage giant carries a favorable Zacks Rank #2 (Buy) paired with an overall VGM Score of a B.
How does everything else shape up heading into the print? Let’s take a closer look.
Share Performance & Valuation
BROS shares have experienced wide price swings in 2022, down more than 35% overall and widely underperforming its Zacks sector.
Image Source: Zacks Investment Research
Over the last three months, the story has primarily remained the same; Dutch Bros shares have sailed through rough waters, down roughly 25% and again underperforming its Zacks sector.
Image Source: Zacks Investment Research
Currently, shares trade at a 1.8X forward price-to-sales ratio, beneath its 2.4X median since IPO and reflecting a 76% discount relative to its Zacks Consumer Staples sector average.
BROS carries a Value Style Score of a D.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bearish in their earnings outlook, with two negative earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $0.06 indicates a Y/Y decline in earnings of more than 70%.
Image Source: Zacks Investment Research
However, the company’s top-line is in much better health; the Zacks Consensus Sales Estimate of $196.3 million suggests an improvement of more than 50% from year-ago quarterly sales of $129.8 million.
Quarterly Performance
BROS has primarily posted mixed earnings results, falling short of earnings estimates by roughly 28% in its latest quarter.
Top-line results have been rock-solid; BROS has exceeded revenue estimates in four consecutive quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
BROS shares have sailed through choppy waters in 2022, underperforming the S&P 500 across several timeframes and indicating that sellers have been in control.
The company’s forward P/S ratio resides below its median since IPO and its Zacks sector average by a fair margin.
Analysts have been bearish for the quarter to be reported, with estimates indicating a decrease in earnings but an uptick in revenue.
The company fell short of earnings expectations in its latest print, but top-line results have been consistently reported above estimates.
Heading into the release, Dutch Bros, Inc. (BROS - Free Report) carries a Zacks Rank #2 (Buy) with an Earnings ESP Score of 71%.
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Dutch Bros Q3 Preview: Can Shares Find New Life?
The Zacks Consumer Staples sector has fared better than most in 2022, down roughly 7% and widely outperforming the general market.
Companies in the sector have the advantageous ability to generate revenue in the face of many economic situations, helping explain why it’s been a brighter spot in a dim market.
A famous company in the sector, Dutch Bros, Inc. (BROS - Free Report) , is on deck to unveil quarterly earnings on November 9th, after the market close.
Dutch Bros Inc. is an operator and franchisor of drive-thru shops focusing on serving high-quality, hand-crafted beverages with unparalleled speed and superior service.
Currently, the beverage giant carries a favorable Zacks Rank #2 (Buy) paired with an overall VGM Score of a B.
How does everything else shape up heading into the print? Let’s take a closer look.
Share Performance & Valuation
BROS shares have experienced wide price swings in 2022, down more than 35% overall and widely underperforming its Zacks sector.
Image Source: Zacks Investment Research
Over the last three months, the story has primarily remained the same; Dutch Bros shares have sailed through rough waters, down roughly 25% and again underperforming its Zacks sector.
Image Source: Zacks Investment Research
Currently, shares trade at a 1.8X forward price-to-sales ratio, beneath its 2.4X median since IPO and reflecting a 76% discount relative to its Zacks Consumer Staples sector average.
BROS carries a Value Style Score of a D.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bearish in their earnings outlook, with two negative earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $0.06 indicates a Y/Y decline in earnings of more than 70%.
Image Source: Zacks Investment Research
However, the company’s top-line is in much better health; the Zacks Consensus Sales Estimate of $196.3 million suggests an improvement of more than 50% from year-ago quarterly sales of $129.8 million.
Quarterly Performance
BROS has primarily posted mixed earnings results, falling short of earnings estimates by roughly 28% in its latest quarter.
Top-line results have been rock-solid; BROS has exceeded revenue estimates in four consecutive quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
BROS shares have sailed through choppy waters in 2022, underperforming the S&P 500 across several timeframes and indicating that sellers have been in control.
The company’s forward P/S ratio resides below its median since IPO and its Zacks sector average by a fair margin.
Analysts have been bearish for the quarter to be reported, with estimates indicating a decrease in earnings but an uptick in revenue.
The company fell short of earnings expectations in its latest print, but top-line results have been consistently reported above estimates.
Heading into the release, Dutch Bros, Inc. (BROS - Free Report) carries a Zacks Rank #2 (Buy) with an Earnings ESP Score of 71%.