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Dutch Bros (BROS) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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The latest trading session saw Dutch Bros (BROS - Free Report) ending at $61.51, denoting a +0.65% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 2.03%. Elsewhere, the Dow saw an upswing of 1.23%, while the tech-heavy Nasdaq appreciated by 2.74%.

The drive-thru coffee chain operator and franchisor's shares have seen a decrease of 11.14% over the last month, not keeping up with the Retail-Wholesale sector's loss of 2.36% and the S&P 500's loss of 5.07%.

The upcoming earnings release of Dutch Bros will be of great interest to investors. The company's earnings report is expected on May 7, 2025. It is anticipated that the company will report an EPS of $0.10, marking a 11.11% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $343.5 million, up 24.86% from the year-ago period.

BROS's full-year Zacks Consensus Estimates are calling for earnings of $0.62 per share and revenue of $1.58 billion. These results would represent year-over-year changes of +26.53% and +23.43%, respectively.

Investors might also notice recent changes to analyst estimates for Dutch Bros. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.76% lower within the past month. Dutch Bros is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Dutch Bros has a Forward P/E ratio of 98.96 right now. This signifies a premium in comparison to the average Forward P/E of 21.24 for its industry.

We can additionally observe that BROS currently boasts a PEG ratio of 3.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. BROS's industry had an average PEG ratio of 2.17 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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