Why Dutch Bros Stock Soared Today
Shares of coffee chain Dutch Bros (NYSE: BROS) soared on Thursday after the company reported financial results for the second quarter of 2022 that Wall Street loved. As of 10 a.m. ET today, Dutch Bros stock was up 20%.
Second-quarter results were basically what management had guided for. Revenue of $186 million was up 44% year over year. The company opened 31 new stores compared to guidance of 30 new stores. And same-store sales were down 3.3% from last year, but management had warned of this small decline.
After seeing these financial results, analyst Nicole Miller Regan of Piper Sandler and David Tarantino of Baird raised their price targets for Dutch Bros stock to $50 and $46, respectively, according to The Fly. Among reasons to be encouraged with the second-quarter results was how management is navigating inflation. By raising menu prices and looking for cost savings, the company was able to increase margins at company-owned locations to 24.6% compared to 18.3% just one quarter ago. That's a huge single-quarter jump.
Source Fool.com
