Dutch Bros Stock Plunges. Why the Stock Fell and Should Investors Buy the Dip?

Shares of coffee chain Dutch Bros (NYSE: BROS) sank nearly 20% following its second-quarter earnings report as guidance disappointed investors. The decline pushed the stock into negative territory for the year.

Was the sell-off an overreaction? And should investors scoop up the stock on the dip?

In the second quarter, revenue climbed 30% year over year to $324.9 million, which topped the analyst consensus by over $7 million. Adjusted earnings per (EPS) soared 46% to $0.19 and also came in ahead of the analysts' estimate. For two of the headline numbers investors look at come earnings time, the company's results exceeded expectations.

Source Fool.com