Dutch Bros (BROS.US) rose 28% after raising its full-year earnings guidance

Zhitong Finance APP noticed that Dutch Bros (BROS.US) soared more than 40% on Thursday after the company beat earnings expectations in Q3 and raised its full-year revenue outlook. The restaurant's stock hit a 52-week high, which may have triggered some short squeeze trades. It closed up 28.13% to $44.77.

Andrew Charles, analyst at TD Cowen, said Dutch Bros' update confirmed the bullish case for mobile orders and unexpectedly focused on food.

During the earnings call, Dutch Bros management said it had started limited food testing at six stores in Q3. The company explored some potential menus, including expanding bakery offerings and hot food options with both sweet and savory flavors. Based on early results, Dutch Bros decided that stronger food stores would play a role in the future.

"At present, food accounts for less than 2% of our sales, and we clearly see the opportunity. We will be diligent and cautious in determining the timing and role of expanding the charging plan, as well as how best to support our Broistas to execute quickly and high-quality and provide excellent service.

Dutch Bros said it does believe that food sales will be a more important opportunity in 2026 and beyond.

According to the earnings report, Dutch Bros' revenue in Q3 grew 28% year-on-year, slightly lower than the 30% increase in Q2. Meanwhile, its EPS was US$0.16, topping the consensus of US$0.13. The company's same-store sales under its own management increased 2.7% year-on-year in Q3.