Dutch Brothers (BROS)

They just reported a nice top and bottom line beat, but sold off 4.2% the next day. That was wrong. Their shop level margin come in a little light. Shares are rallied since Friday.

It reports Wednesday. Has a lot of room to grow. Expects a good quarter.

Wait till it reports next month. Is down 11% the past month. Be patient. Likes it. 

Is up 40% this year, including +8% after reporting a great quarter last week. It remains 15% off its February high. He's long liked this, and sees more upside.

They have an investor day on Thursday. An expensive stock. A regional and national growth story, though.

BROS certainly has strong momentum, up nearly 45% year-to-date and is expensive at 97x forward price-to-earnings. It is expected to grow the top line at 20% annually over the next two years. Recent quarterly results were very strong with EPS beating estimates of 12c coming in at 16c. Revenue was $338.2M increasing 28% year-over-year and beating estimates of $324.8M. BROS has continued it rapid expansion rolling out 38 new stores in the quarter. Results were very strong and the company had breakeven free cash flow following the quarter. We think it looks solid, but would be cautious of debt levels as it does have $647M in net debt and the valuation is expensive.
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It reported then shares plunged 20%. Reported a revenue beat, but didn't change their full-year guidance, including the lower end of new store openings. Fundamentals remain solid. Why the 20% drop??

Excellent company. Would recommend buying. 

Dutch Bros. grew way too fast. SBUX has a problem in China and the U.S. given the Israel-Hammas war. SBUX will miss its next report given weakness in China and the U.S. So buy SBUX $5 lower, because China is reawakening from its slumber and will come back.

Last night they reported a top and bottom line beat with strong same-store sales growth. Shares jumped 8% today, but gave back almost all gains. Managers expect decelerating traffic, but that was due to a price increase already announced.

They overexpanded and carry a heavy balance sheet.

Have been overexpanding which hurts the franchise. Down 13% in the past 3 months.

The class-action suits are nonsense. A great stock, fine performer.