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Dutch Bros. stock sinks on Q1 revenue miss

Yahoo Finance’s Brooke DiPalma joins the Live show to discuss the decline in stock for Dutch Bros. following first-quarter earnings.

Video Transcript

JULIE HYMAN: Let's talk around Dutch Bros., as well, because that's another food coming out with numbers this morning. It's taking a hit, down 10%. Revenue came in well below estimates despite its 30% jump in revenue year-over-year. It also missed on same-store sales.

What's going on at Dutch Bros.? Right? It had been on, kind of, a tear.

BROOKE DIPALMA: Yeah. Well, certainly, the Wall Street responding, I guess, poorly today, down 10%, as you just noted. Also seeing some downgrades across the board from Wall Street as well. But results narrowly missing here on adjusted earnings per share, down-- or narrowly beating, rather-- down $0.01 compared to Wall Street estimates of down $0.03.

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And also a miss on revenue. But revenue did jump 30% year-over-year, and so the company really emphasizing that to investors this morning. In addition to that, we also saw same-store sales down 2% across the board, with company-owned stores down 3.5%. And that's with an 8% pricing more offset by an 8% drop in traffic.

But the company continuing to persist, continuing to develop-- hopefully, one day soon, making their way to the East Coast here. Of course, they did start on the West Coast in Oregon. And they did open up 45 new shops this past quarter, 42 of which were company operated across nine states. And they said that all of these new shops continue to be led by existing or newly prompted regional operators.

But one thing there that they did note on the earnings call is that they're looking to get more people, more, perhaps, brand awareness in these new stores, looking to increase volume there. And that may take some time. And so, while we know about Dutch Bros., perhaps these new places that they're operating may not have full brand awareness.