Why Dutch Bros Stock Was Surging Today
Shares of Dutch Bros (NYSE: BROS) were up 22% as of 10:54 a.m. ET on Wednesday after the company's second-quarter earnings results. While revenue missed estimates, adjusted earnings per share of $0.13 significantly beat the consensus estimate calling for $0.07.
The market wasn't pleased with the company's first-quarter results, especially with the $9.4 million loss on the bottom line and a decline in same-shop sales. But Dutch Bros proved it can control costs in this challenging operating environment and deliver profitable growth while continuing to invest in opening new shops.
Overall, revenue grew 34% year over year, up from 30% in the previous quarter. The company opened 38 new shops, bringing its total footprint to 754, a 25% year-over-year expansion. The company padded that increase in new shops by also reporting a 3.8% increase in same-shop sales. The market was more impressed with the $9.7 million in net profit, a big improvement over the year-ago quarter's loss of $1.8 million.
Source Fool.com
