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Earnings To Watch: Dutch Bros (BROS) Reports Q1 Results Tomorrow

StockStory - Mon May 6, 2:01AM CDT

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Coffee chain Dutch Bros (NYSE:BROS) will be announcing earnings results tomorrow after the bell. Here's what to expect.

Dutch Bros met analysts' revenue expectations last quarter, reporting revenues of $254.1 million, up 25.9% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts' expectations.

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

This quarter, analysts are expecting Dutch Bros's revenue to grow 29.6% year on year to $255.6 million, in line with the 29.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.

Dutch Bros Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dutch Bros has missed Wall Street's revenue estimates twice over the last two years.

Looking at Dutch Bros's peers in the traditional fast food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Starbucks's revenues decreased 1.8% year on year, missing analysts' expectations by 6.5%, and El Pollo Loco reported revenues up 1.4%, topping estimates by 4.6%. Starbucks traded down 15.9% following the results while El Pollo Loco was up 16.5%.

Read our full analysis of Starbucks's results here and El Pollo Loco's results here.

Investors in the traditional fast food segment have had fairly steady hands going into earnings, with share prices down 1.6% on average over the last month. Dutch Bros is down 15% during the same time and is heading into earnings with an average analyst price target of $35.3 (compared to the current share price of $27.49).

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