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Dutch Bros (BROS) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest close session, Dutch Bros (BROS - Free Report) was down 6.93% at $58.46. The stock fell short of the S&P 500, which registered a gain of 0.07% for the day. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.18%.

Shares of the drive-thru coffee chain operator and franchisor have depreciated by 8.37% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 5.27%, and the S&P 500's gain of 5.71%.

Market participants will be closely following the financial results of Dutch Bros in its upcoming release. The company plans to announce its earnings on August 6, 2025. On that day, Dutch Bros is projected to report earnings of $0.18 per share, which would represent a year-over-year decline of 5.26%. Alongside, our most recent consensus estimate is anticipating revenue of $401.15 million, indicating a 23.46% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.59 per share and a revenue of $1.58 billion, representing changes of +20.41% and +23.35%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Dutch Bros. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.83% lower. Dutch Bros currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Dutch Bros is currently trading at a Forward P/E ratio of 106.2. For comparison, its industry has an average Forward P/E of 22.47, which means Dutch Bros is trading at a premium to the group.

It's also important to note that BROS currently trades at a PEG ratio of 3.04. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry had an average PEG ratio of 2.63 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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