- Dutch Bros had a tough quarter in Q1, with lower-than-expected same-shop sales and a negatively revised same-shop sales outlook overshadowing rapid unit growth.
- Adding insult to injury, margins came under pressure due to soaring dairy costs, taking a meaningful bite out of previous FY2022/FY2023 annual EBITDA estimates.
- After a more than 50% decline from the stock's highs, some investors might be anxious to jump into this growth story, but I struggle to see the value proposition.
- With a fast-growing concept, brand loyalty, and exceptional AUVs relative to box size, Dutch Bros is a phenomenal story, but it continues to be a great story with no margin of safety.
For further details see:
Dutch Bros: Don't Chase This Rally