Dutch Bros (NYSE:BROS) shares surged nearly 9% in the early session today after the coffee-based products provider delivered a better-than-expected third-quarter performance. EPS of $0.14 handily beat expectations by $0.08. Further, revenue jumped by 33.1% year-over-year to $264.5 million, outpacing estimates by $6.2 million.
During the quarter, BROS opened 39 new systemwide shops and expanded into Alabama and Kentucky. Systemwide shop sales increased by 4%, and revenue at company-operated shops surged by 36.3% to $236.5 million.
Dutch Bros has been steadily expanding its presence, currently operating 794 shops. The company aims to take this count to 4,000 and recently shored up its balance sheet with nearly $500 million in incremental liquidity through a follow-on equity offering and an upgrade to its credit facility.
For Fiscal year 2023, Dutch Bros plans to open at least 150 new shops and expects capital expenditures to be in the range of $225 million to $250 million. Revenue is anticipated to be at the lower end of the range, between $950 million to $1 billion, but adjusted EBITDA is expected to expand to a range between $150 million and $155 million.
What Is the Forecast for BROS Stock?
Overall, the Street has a Moderate Buy consensus rating on Dutch Bros. The average BROS price target of $32.67 implies a 22.6% potential upside. That’s on top of a nearly 11% rise in BROS shares over the past month.
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