BROS - Why Dutch Bros Stock Is Soaring Today
2024-05-08 14:18:16 ET
Shares of quick-service coffee and beverage company Dutch Bros (NYSE: BROS) exceeded analysts' estimates for its first-quarter results. As of 1:20 p.m. ET on Wednesday, Dutch Bros stock was up 11%.
Entirely in high growth mode, Dutch Bros delivered a 39% sales increase in Q1, powered by the fact that its store count grew by 22% over the same time frame. However, these new stores didn't account for all of Dutch Bros' growth, with its same-store sales (SSS) rising by 10% during the quarter. This impressive growth occurred despite the challenging consumer spending environment that its behemoth peer Starbucks noted in its recent earnings call.
As promising as this fifth consecutive quarter of positive SSS growth was, the company's streamlining profitability was even better. With its sales, general, and administrative expenses declining from 23.3% of sales last year to 16.8% today, Dutch Bros delivered a net profit margin of 6% in Q1.
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Why Dutch Bros Stock Is Soaring Today