BROS - Dutch Bros' Strong Q1 Earnings Report Shows It Is Leagues Ahead Of Starbucks
2024-05-07 23:39:05 ET
Summary
- Dutch Bros beats market expectations with strong growth in US same-shop sales and record-breaking system average unit volume.
- The company's rapid expansion into new markets, such as Texas, contributes to its growth. It recently also opened 2 stores in Florida, with more store openings on the horizon.
- Dutch Bros demonstrates efficiency in increasing operating leverage, leading to lower costs and margin expansion.
- I estimate 20% upside, with strong upcoming seasonality to buoy the company's growth through the year.
Investment Thesis
Dutch Bros ( BROS ) posted quarterly earnings and revenue for their first quarter of FY24 that beat market expectations amid strong growth in their U.S. same-shop sales, much faster than what the coffee chain had witnessed in the same quarter a year earlier....
Dutch Bros' Strong Q1 Earnings Report Shows It Is Leagues Ahead Of Starbucks