Why Dutch Bros Stock Skyrocketed This Week
Shares of handcrafted beverages chain Dutch Bros (NYSE: BROS) are up 35% this week as of 4 p.m. ET Thursday, according to data provided by S&P Global Market Intelligence.
Reporting third-quarter earnings, Dutch Bros beat analysts' expectations on both the top and bottom lines while offering improved guidance for the remainder of 2024. In addition to growing its store count and sales by 20% and 28% compared to last year, the company generated positive free cash flow (FCF) for the first time through the first three quarters of the year.
Earning $184 million in cash from operations versus $179 million spent on capital expenditures so far in 2024, Dutch Bros generated positive FCF despite still being in hypergrowth mode. This is important for shareholders as it means the company is on the precipice of self-funding its store count expansion plans without diluting shareholders via new share offerings.
Source Fool.com
