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Dutch Bros (BROS) to Post Q4 Earnings: What's in the Cards?

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Dutch Bros Inc. (BROS - Free Report) is likely to register top-line growth when it reports fourth-quarter 2023 results on Feb 21, after market close. The Zacks Consensus Estimate for revenues is pegged at $254.8 million, indicating a rise of 26.3% from the year-ago reported figure.

The consensus estimate for fourth-quarter earnings is pegged at 2 cents per share, suggesting a 33.3% decrease from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days.

Dutch Bros has a trailing four-quarter earnings surprise of 57.1%, on average. In the last reported quarter, the company delivered an earnings surprise of 100%.

Key Factors to Note

Dutch Bros has been experiencing strength in its underlying business and expansion initiatives. The company has been enhancing its footprint across newer markets via opening shops systemwide. Its fortressing strategy, which includes sales being transferred from the existing shops to new ones, also bodes well. These factors have been boosting the company’s system same-shop sales for a while now and are likely to have boosted the metric during the quarter under review. In addition, the company has been making cost-reduction efforts, resulting in SG&A leverage.

However, a tough macro landscape, including inflationary pressures, remains a concern. The company is prone to economic conditions, including commodity inflation, elevated labor costs and supply-chain disruptions. The company has been making higher shop labor investments and investments toward business-building activities. These limitations are likely to have weighed on the company’s profitability in the quarter under review.

What the Zacks Model Unveils

Our proven model conclusively predicts an earnings beat for Dutch Bros this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they're reported with our Earnings ESP Filter.

Dutch Bros Inc. Price and EPS Surprise

Dutch Bros Inc. Price and EPS Surprise

Dutch Bros Inc. price-eps-surprise | Dutch Bros Inc. Quote

Dutch Bros has an Earnings ESP of +45.83% and a Zacks Rank of 3.

Other Stocks With the Favorable Combination

Here are some other companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.

Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +5.71% and a Zacks Rank of 2. The company is likely to have registered a top-line increase in its fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from that reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Inter Parfums’ quarterly earnings of 35 cents per share indicates a decline of 50.7% year over year. IPAR has a trailing four-quarter average earnings surprise of 45.7%.

Planet Fitness (PLNT - Free Report) currently has an Earnings ESP of +3.77% and a Zacks Rank of 3. PLNT is likely to have registered top and bottom-line growth in its fourth-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $283.6 million, suggesting 0.8% growth from the figure reported in the year-ago quarter.

The consensus estimate for Planet Fitness’ fourth-quarter earnings is pegged at 58 cents per share, suggesting 9.4% growth from the year-ago quarter. The consensus mark has moved up by a penny in the past 30 days.

Monster Beverage (MNST - Free Report) has an Earnings ESP of +1.65% and a Zacks Rank of 3 at present. MNST is likely to have registered top and bottom-line growth in its fourth-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.8 billion, implying growth of 15.9% from that reported in the prior-year quarter.

The consensus estimate for Monster Beverage’s quarterly earnings has remained unchanged in the past 30 days at 39 cents per share, indicating growth of 34.5% from the year-ago quarter’s reported number. MNST has a trailing four-quarter average earnings surprise of 1.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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