Dutch Bros Inc BROS shares are trading higher by 4.97% to $25.14 during Thursday's session. The stock is trading higher potentially in sympathy with peer coffeehouse chain Starbucks Corp after the company reported better-than-expected fourth-quarter financial results and comparable sales growth.
What Happened With SBUX Earnings?
Starbucks beat expectations with its fourth-quarter FY23 results, reporting a 11.4% YoY sales growth at $9.37 billion. Comparable store sales were strong, up 8% globally and 8% in North America, with revenue in North America rising 12.5% to $6.9 billion.
International revenue also grew by 11.4% to $1.98 billion, and adjusted EPS came in at $1.06, surpassing the consensus estimate of 97 cents...Read More
Why It Matters To Dutch Bros. Investors
Investors frequently use Starbucks' performance as a benchmark for assessing the health and potential of the coffeehouse industry. If Starbucks is thriving, it can lead investors to believe that there is ample room for growth and profitability in the market, which can boost confidence in Dutch Bros.
In general, positive earnings from Starbucks can create a positive momentum in the coffee sector, causing investors to pay more attention to related stocks like Dutch Bros.
This momentum can drive up Dutch Bros' stock price as investors seek to capitalize on the trend.
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According to data from Benzinga Pro, BROS has a 52-week high of $41.44 and a 52-week low of 22.66.
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