Coffee Chain Dutch Bros Tops Q3 Expectations, Reaffirms FY23 Outlook: Details

Dutch Bros Inc. BROS shares are trading higher in Tuesday's after-hours session on the heels of the company's third-quarter earnings release.

What To Know:  The company reported quarterly earnings of 14 cents per share, beating the analyst consensus estimate of seven cents, a 55.56% increase over earnings of nine cents per share from last year.

The company reported record revenue of $265.00 million, beating the analyst consensus estimate of $258.60 million. The figure represents a 33.40% increase over sales of $198.65 million in the same period last year.

Dutch Bros saw a 4.0% increase in system same-shop sales compared to 2022, reflecting the company's fortressing strategy, in which sales are transferred from existing shops to new ones. Company-operated same-shop sales rose 2.8%.

Expectations for full-year 2023 revenue, anticipated to be at the lower end of the $950 million to $1 billion range versus the $957.55 million estimate, as well as total system shop openings, remain unchanged.

Joth Ricci, CEO of Dutch Bros, stated, "By all accounts, Q3 was a fantastic quarter, and we are extremely pleased with our unit openings, same shop sales, revenue, and profitability results. I am very proud of the team for their accomplishments, and I am encouraged by the strength of the underlying business as we execute on our plan."

"In Q3, we opened 39 shops systemwide and entered two new states: Alabama and Kentucky. Despite a difficult consumer backdrop, we drove a 4.0% increase in systemwide same-shop sales and delivered 33% growth in our top-line revenue."

Related Link: Upstart Reports Weak Q3 Results, Stock Tanks After-Hours

BROS Price Action: Shares of BROS were up 3.16% at $27.42 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by Rudy and Peter Skitterians from Pixabay