Dutch Bros stock jumps on Q1 earnings, raises 2024 guidance

Dutch Bros (BROS) shares are rallying Wednesday, as the coffee chain's first-quarter results beat on both the top and bottom lines. The company reported revenue of $275.10 million, surpassing estimates of $255.62 million. Adjusted earnings per share (EPS) came in at $0.09 per share against expectations of $0.02.

Yahoo Finance's Brooke DiPalma breaks down the details of the report, analyzing Wall Street commentary comparing Dutch Bros' performance to that of cafe juggernaut Starbucks (SBUX).

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This post was written by Angel Smith

Video transcript

Shares of Dutch brothers.Let's check them out as well because they're rising after reporting positive first quarter results yesterday and here to help us break it all down.Is Yahoo Finance's Brooke Dipalma Brooke?Yeah, Dutch Bros.Certainly a big day for them.The stock jumped as much as 15% during today's trading session after the company beat on both the top and bottom line adjusted earnings, coming in at nine cents higher than expected revenue, also growing 39% year over a year to 275.1 million higher than what Wall Street expected.That 255.62 million and same source sales growth is really the big story here.We saw that jump 10% year over year, far higher than what the street expected, which was 4%.And there are really four things that led that uptick in same source sales.We saw pricing foot traffic menu and Dutch Bros.Reward members drive that same source sales increase.This was the strongest single quarter jump since the end of 2021.We saw higher prices up 6%.We saw 1% increase in foot traffic.Also menu innovation.The company launched Protein, coffee and Boba, which helped in the afternoon and boosted the average ticket size and also reward members made up six 6% of transactions in the latest quarter.Now the company did raise their guidance.When it comes to revenue, they now expect between 1.2 billion and 1.215 billion for the full year.Many on the street saying that they can actually beat that and we know that Dutch pros is rapidly expanding.They opened up a new location in Florida That's one of their first East Coast locations.I not the first, and we're also rapidly expanding in Texas as well.So lots of optimism on the street right now.And many watching close super super quick.Yeah, obviously, this is a big contrast with Starbucks contrast.I mean, and it's they're very different in size, but just quickly is there something that's like that encapsulates why Dutch Bros. Is doing so much better?Yeah, many are focusing in on that rewards members.We did see a huge uptake year over year just Dutch bros putting out of the rewards programme and doing well.Them, You know what's interesting is Dutch pros has a model where they actually have more customers during the afternoon than they do in the morning.And so, with this uptick or more reward members using the app to make their transactions now they're saying, Hey, we're actually using marketing to bring them in the morning.And what's really interesting, too, which is something to watch, is that such pros doesn't even have that much food offerings, if not many at all.And so Starbucks obviously has a huge, huge food offering.And so that's something to watch, to see how they roll that out and how they can entice breakfast.That protein coffee, though, brought in a lot more people into new products.Protein, milk infused coffee.All right, it's more than 20 grammes of protein.We'll talk about we gotta we gotta go.But we we to to be continued, Brooke.Thank you.