Dutch Bros (NYSE:BROS) shares rallied nearly 7% in the early session today after the coffee-based products provider posted robust numbers for the fourth quarter. Revenue surged by 26% year-over-year to $254.1 million, exceeding estimates by roughly $1.2 million. Similarly, EPS of $0.04 outpaced expectations by $0.02.
In Q4, BROS opened 37 new shops across ten states. Systemwide same-shop sales increased by 5%. Further, same-shop sales at company-operated stores ticked higher by 4.6%. At the same time, contribution margin at company-operated locations declined by 200 basis points to 26.5%. Still, its adjusted EBITDA ballooned by 16.2% to $34.6 million in Q4.
Dutch Bros operated about 831 shops at the end of December 2023. The company plans to open nearly 150 to 165 new shops in Fiscal Year 2024. Total revenue for the year is anticipated in the range of $1.19 billion to $1.2 billion. Adjusted EBITDA is seen landing between $185 million and $195 million. Further, same-shop sales are estimated to rise in the low single digits during this period. The company also plans to introduce mobile ordering in 2024.
What Is the Forecast for BROS Stock?
Overall, the Street has a Moderate Buy consensus rating on Dutch Bros, and the average BROS price target of $33.50 implies a 23.9% potential upside in the stock. That’s after a nearly 27% drop in the company’s share price over the past year. However, it’s worth noting that estimates will likely change following today’s earnings report.
Read full Disclosure
