Dutch Bros stock spirals lower as company misses revenue guidance projection

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Make no mistake. Dutch Bros (BROS) had a terrific second quarter.

Dutch Bros stock gets shunted below $30 per share. Market seems overly pessimistic on a mere $5 million miss on full-year sales guidance.

trend higher as Initial Jobless Claims come in below forecast. Make no mistake. Dutch Bros had a terrific second quarter. At first glance, however, with the share price plunging 22% on Thursday to $29.40, traders might think otherwise. But Dutch Bros is simply a victim of its own success. The Oregon-founded coffee shop that targets America’s suburban drive-thru consumer is selling off due to a slight miss on Wall Street’s future revenue guidance.

stock has sold off by about $1.5 billion in market cap due to a difference of $5 million in revenue guidance. Go figure! But a lot can go wrong when a high-growth stock is trading at 100 times adjusted earnings and 200 times GAAP earnings, which was the case with Dutch Bros. More importantly, Dutch Bros reported Q2 adjusted earnings per share of $0.19, which was nearly 50% higher than the consensus of $0.13.

 

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