Why Dutch Bros Stock Jumped 10% Today

Source The Motley Fool

Shares of Dutch Bros (NYSE: BROS) were buzzing and popping on Thursday. The coffee chain, famous for its friendly service and drive-thru focus, posted a fresh first-quarter report on Wednesday evening. The results came in well above the analyst community's projections, driving Dutch Bros' stock as much as 10% higher in the morning session. By 12:20 p.m. ET, it had cooled down slightly to an 8.2% overnight gain.

Q1 by the numbers

The average Wall Street analyst had expected adjusted first-quarter earnings of roughly $0.11 per share, based on top-line revenue in the neighborhood of $343.6 million. Dutch Bros' actual earnings landed at $0.14 per share, up from $0.09 per share in the year-ago report. Revenues rose 29% to $355.2 million.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Management held their full-year guidance targets steady, but noted that many metrics are trending above the midpoint of earlier expectations. In particular, Dutch Bros could see surprisingly strong 2025 results in the categories of total revenues, same-store sales growth, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

Smiling person receives coffee and a bag of snacks at a drive-thru window.

Image source: Getty Images.

Dutch Bros' recipe for thriving in a tough market

CFO Josh Guenser admitted that the macroeconomic situation is unpredictable these days. But the company's exposure to tariff expenses is "limited," with most of the coffee beans it buys coming from low-tariff countries like Brazil, El Salvador, and Colombia. And Dutch Bros has secured its supplies for the rest of 2025 with preorders.

"We have a strong runway ahead and are well positioned to continue producing healthy financial results in this dynamic macro environment," Guenser said on the earnings call.

So Dutch Bros is still an inspiring growth story, despite macroeconomic pressure and rising ingredient prices. The stock trades 27% below February's all-time record price at 166 times trailing earnings. Dedicated growth investors can swallow the lofty valuation and invest in Dutch Bros' seemingly unstoppable growth.

Should you invest $1,000 in Dutch Bros right now?

Before you buy stock in Dutch Bros, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dutch Bros wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $717,471!*

Now, it’s worth noting Stock Advisor’s total average return is 909% — a market-crushing outperformance compared to 162% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Dogecoin Flashes Multiple Bullish Flags All Pointing To $1The dream of seeing Dogecoin trade at $1 remains alive among its community of loyal investors, even as the meme coin continues to struggle below the $0.20 mark.
Author  Bitcoinist
Apr 27, Sun
The dream of seeing Dogecoin trade at $1 remains alive among its community of loyal investors, even as the meme coin continues to struggle below the $0.20 mark.
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
goTop
quote