Dutch Bros (BROS) Registers a Bigger Fall Than the Market: Important Facts to Note

Dutch Bros (BROS) ended the recent trading session at $48.17, demonstrating a -6.63% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 1.52%. On the other hand, the Dow registered a loss of 1.56%, and the technology-centric Nasdaq decreased by 1.78%.

The drive-thru coffee chain operator and franchisor's shares have seen a decrease of 3.61% over the last month, not keeping up with the Retail-Wholesale sector's loss of 1.95% and the S&P 500's loss of 2.25%.

Market participants will be closely following the financial results of Dutch Bros in its upcoming release. The company's earnings per share (EPS) are projected to be $0.15, reflecting a 7.14% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $447.17 million, indicating a 25.91% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.91 per share and a revenue of $2.04 billion, representing changes of +19.74% and +24.28%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Dutch Bros. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 6.91% higher. Dutch Bros is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Dutch Bros is currently exchanging hands at a Forward P/E ratio of 56.6. This denotes a premium relative to the industry average Forward P/E of 20.16.

We can also see that BROS currently has a PEG ratio of 1.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.91.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 170, placing it within the bottom 31% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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This article originally published on Zacks Investment Research (zacks.com).

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