Why Dutch Bros Stock Jumped 18% in July
Shares of coffee shop chain Dutch Bros (NYSE: BROS) notched an 18% gain in July according to data provided by S&P Global Market Intelligence. While there was no news specific to Dutch Bros in July, it benefited from strong consumer spending and a rise in the overall market.
Dutch Bros is a West Coast-based coffee shop chain with nearly 600 units in 12 states. It doesn't see itself as a challenger to coffee behemoth Starbucks, but it's carved out its own niche with a fun environment and large assortment of unique cold beverages.
It's opening stores quickly and sees a market for 4,000 stores over the next 10 to 15 years. It opened 34 shops in the first quarter of 2022, ended March 31, and revenue increased 54% year over year. Comparable sales only increased 6%, so while inflation is hitting Americans' pockets, most of the company's sales growth is coming from new stores. Ample store growth potential is good news in this macroeconomic environment.
Source Fool.com
