Why Dutch Bros Stock Rallied More Than 13% Last Week

Shares of West Coast drive-through coffee and beverage chain Dutch Bros (NYSE: BROS) rallied 13.4% last week. In the holiday-shortened week of market trading, Dutch Bros shook off an atrocious June and started the summer quarter with a respectable rally.  

There was no specific news from Dutch Bros to cause the stock-price jump. However, after getting off to a hot start as a publicly traded company in the second half of 2021, it's been rough going for the coffee shop operator and franchisor. Shares are currently down nearly 60% from the all-time high hit earlier this year.  

Dutch Bros is still growing at a fast clip. However, inflation has also been hot this year, and restaurant and hospitality businesses are taking it on the chin as things like food and packaging soar in price. In addition, the U.S. Federal Reserve is raising interest rates to try to combat inflation, and these rising rates lower the present value of risk assets -- especially high-growth stocks like Dutch Bros. 

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Source Fool.com