The Upheaval

Dutch Bros (NYSE:BROS) experienced a significant tumble in postmarket trading as investors appeared unimpressed by the company’s full-year revenue guidance that narrowly missed analyst expectations. This left a bitter aftertaste despite the positive quarterly performance.

Quarterly Snapshot

During Q2, Dutch Bros witnessed a 30% surge in revenue compared to a 39% increase in the previous quarter. Impressively, the earnings per share stood at $0.19, surpassing the consensus estimate of $0.13. System same shop sales also showed promise, climbing by 4.1% year-over-year.

Expansion Strategies

The company celebrated the successful launch of 36 new shops in the second quarter, maintaining a trend of 30 or more new openings per quarter for the 12th consecutive time. By June 30th, 38 shops across Arizona, California, and Texas were equipped with mobile ordering capabilities, with plans to extend this service to about 200 shops by the end of July. A bullish outlook was also expressed regarding mobile order offerings in a majority of Dutch Bros locations by year-end.

Future Projections

Looking forward, Dutch Bros foresees a revenue range of $1.215 billion to $1.230 billion for FY24, with a midpoint of $1.225 billion. While this forecast represents an upward revision from the previous outlook of $1.20 billion to $1.215 billion, it falls slightly short of the consensus estimate of $1.23 billion. Management attributed this cautious approach to the current “volatile” consumer environment but maintained optimism by refraining from issuing alarming statements on demand patterns.

Market Response

Falling by a substantial 22.2% to $29.20 at 6:20 p.m., Dutch Bros shares faced a sobering reality as they dipped below the $30 mark for the first time since May. In a synchronized market movement, Starbucks (SBUX) also saw a decline of 1.1% during the postmarket session.