Dutch Bros Serves Up Piping Hot Growth. Is the Stock a Buy?
Dutch Bros (NYSE: BROS) delivered another quarter of strong growth, finally reaching $1 billion in revenue on a trailing 12-month basis, but inflation is taking a toll on profit margins and on its lower-income customers even as it forces the drive-thru coffee chain to continuously raise prices.
Although management raised its full-year revenue guidance, investors still need to take the long view when buying its stock because almost all of Dutch Bros' gains are coming from new store openings. Comparable-store sales fell during the quarter, and though they are still above 2019 levels, this period of rising prices and higher costs is going to be challenging.
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Source Fool.com
