PIPR

Piper Sandler Companies

114.52
USD
-1.52%
114.52
USD
-1.52%
102.60 193.60
52 weeks
52 weeks

Mkt Cap 2.05B

Shares Out 17.88M

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Why Dutch Bros Stock Soared Today

What happened Shares of coffee chain Dutch Bros (NYSE: BROS) soared on Thursday after the company reported financial results for the second quarter of 2022 that Wall Street loved. As of 10 a.m. ET today, Dutch Bros stock was up 20%. So what Second-quarter results were basically what management had guided for. Revenue of $186 million was up 44% year over year. The company opened 31 new stores compared to guidance of 30 new stores. And same-store sales were down 3.3% from last year, but management had warned of this small decline. After seeing these financial results, analyst Nicole Miller Regan of Piper Sandler and David Tarantino of Baird raised their price targets for Dutch Bros stock to $50 and $46, respectively, according to The Fly. Among reasons to be encouraged with the second-quarter results was how management is navigating inflation. By raising menu prices and looking for cost savings, the company was able to increase margins at company-owned locations to 24.6% compared to 18.3% just one quarter ago. That's a huge single-quarter jump. Now what Dutch Bros ended the second quarter with 603 stores. In the long term, it believes it can have 4,000 U.S. locations, and it'll keep marching toward that goal by opening at least another 65 in the second half of 2022. Previously, management was guiding for full-year 2022 revenue of $700 million to $715 million. With its second-quarter report, it now believes $715 million will be on the low end of its revenue this year. For perspective, reaching $715 million in 2022 revenue would represent nearly 44% growth from 2021 and 192% growth from 2020. Dutch Bros is a hot growth stock that investors love. Its operating loss of $11.6 million in the first half of 2022 isn't outrageous. And if it can keep putting up top-line growth numbers like these while keeping operating losses to a minimum, then the stock could have long-term upside. 10 stocks we like better than Dutch Bros Inc. When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Dutch Bros Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of July 27, 2022 Jon Quast has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

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