Yahoo Finance Live’s Rachelle Akuffo discusses the decline in stock for Dutch Bros. following first-quarter earnings.
RACHELLE AKUFFO: Well, Shares of drive-through chain Dutch Bros. slumping today as rocketing revenue missed very high expectations in the first quarter. Investors have set a high bar for the coffee company. Surging Q1 sales and reaffirmed guidance still not enough to boost sentiment, it seems.
An analyst from Stifel attributing some of the disappointment to adverse weather events in California, saying 18% to 19% of the coffee chain's locations are in California, and a majority were impacted by weather in the first quarter.
Dutch Bros. also tanking today on a big downgrade from JPMorgan. The bank bringing the coffee chain down to neutral from overweight and dropping its price target to $32 a share from $38.