Why Dutch Bros Got Burned Today
Shares of Dutch Bros (NYSE: BROS) fell 7.6% on Tuesday after the California legislature passed a bill creating a new wage board that would set minimum starting salaries for fast-food restaurants in the state at as much as $22 per hour.
The drive-thru coffee chain operates over 100 locations in California, about 20% of its stores. Rising labor and commodity costs were already impacting performance, and this initiative presents yet one more hurdle.
Image source: Getty Images.
Source Fool.com
