Dutch Bros stock drops 19% despite strong revenue growth
Dutch Bros shares fell 19% on August 6 after the company released its second-quarter financial results. The company reported 32.5% year-over-year revenue growth and a 40% increase in diluted earnings per share.
The market reaction may be unwarranted, as the company’s growth trajectory remains intact. Dutch Bros opened 48 new stores in the quarter and plans to open 185 net new coffee shops in 2026.
Systemwide same-store sales rose 5.8% last quarter, continuing a 19-year streak of positive growth. The company’s revenue is projected to surge at a compound annual rate of 27% between 2025 and 2028.
The stock is trading at a reasonable price-to-sales multiple of 3.8, which could propel the share price