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What To Expect From Dutch Bros’s (BROS) Q4 Earnings

StockStory - Tue Feb 20, 1:00AM CST

BROS Cover Image

Coffee chain Dutch Bros (NYSE:BROS) will be reporting earnings tomorrow after market hours. Here's what to look for.

Last quarter Dutch Bros reported revenues of $264.5 million, up 33.2% year on year, beating analyst revenue expectations by 2.4%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings and revenue estimates.

Is Dutch Bros buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Dutch Bros's revenue to grow 25.3% year on year to $252.9 million, slowing down from the 44.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.

Dutch Bros Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Dutch Bros's peers in the traditional fast food segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. McDonald's delivered top-line growth of 8.1% year on year, missing analyst estimates by 0.7% and Restaurant Brands reported revenues up 7.8% year on year, exceeding estimates by 1%. McDonald's traded down 1.7% on the results, and Restaurant Brands was flat on the results.

Read our full analysis of McDonald's's results here and Restaurant Brands's results here.

There has been positive sentiment among investors in the traditional fast food segment, with the stocks up on average 2.9% over the last month. Dutch Bros is up 0.7% during the same time, and is heading into the earnings with analyst price target of $34.3, compared to share price of $27.5.

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