Inflation Proves a Challenge for Dutch Bros
The rising cost of milk curdled coffee shop Dutch Bros' (NYSE: BROS) first-quarter earnings report, causing the market to pour out its stock like day-old joe. The company, which went public last September at a price of $23 per share, saw its stock briefly trade below the IPO offering price as a result -- and the shares are down some 70% from its early, heady days.
While first-quarter sales and profits beat Wall Street expectations, the ravages of inflation hit harder than expected, leading Dutch Bros to lower its outlook for adjusted earnings and same-store sales for the year. It also caused the company to raise prices to offset the impact, albeit more modestly than the competition.
Image source: Dutch Bros.
Source Fool.com
