US26701L1008 - Common Stock
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the traditional fast food industry, including Dutch Bros (NYSE:BROS) and its peers.
Dutch Bros has had an impressive run over the past six months as its shares have beaten the S&P 500 by 22.4%. The stock now trades at $52.23, marking a 32.8% gain. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Is Dutch Bros stock too hot to touch? Here's one key reason why you might want to grab a few shares, despite lofty prices.
Shares of Dutch Bros (NYSE: BROS) have soared 71% year to date as of Dec. 4, with most of its gains coming in the wake of the company's third-quarter earnings report from Nov. 6. Dutch Bros is reinvesting most of its profits back into the business by opening more locations across the U.S. It's operating with a slim net profit margin of just 3.7% last quarter. As you can see, in its three years as a public company, Dutch Bros stock has traded well within the range of P/S multiples that Starbucks has seen over its 30-year trading history.
Dutch Bros closed at 22.67 on Sept. 28, 2023 and started rising. It's been piping hot lately and jumped 28% on Oct. 7 on strong earnings.
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