Fast-growing coffee chain Dutch Bros (NYSE: BROS) continues to expand quickly, adding a record 38 new locations in the third quarter to bring its total of drive-thru shops to 641 in 14 states.
With revenue soaring and gross margins widening sequentially, the stock of the third-largest coffee chain (behind Starbucks and Dunkin Brands) catapulted 22% last Thursday after its third quarter earnings report was released. It was also a riotous day on the market itself as the Dow Jones Industrial Average surged 1,200 points.
Yet as good as this performance is, there remain some off notes to the results that stand out like the taste of day-old coffee.
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Dutch Bros Keeps Offering Up Piping-Hot Growth. Should You Buy?