Dutch Bros Rolls Out Cereal Beverages, On Track With Growth Efforts

Dutch Bros Inc. BROS has been experiencing strength in its underlying business and expansion initiatives. The company has been enhancing its footprint across newer markets by opening shops systemwide. We note that Dutch Bros Coffee launched two cereal-inspired beverages, including the Cinnamon Swirl and Marshmallow Dream. Such beverages bring the essence of the 'bottom-of-the-bowl' cereal milk. From Jan. 3, these drinks are available at more than 950 locations.The Cinnamon Swirl has cinnamon sugar cereal milk, while the Marshmallow Dream provides a marshmallow cereal milk experience, topped with the company’s signature Soft Top. Both the drinks come in different forms, including as a Latte, Protein Latte, Freeze or Chai Latte for the Cinnamon Swirl and as a Latte, Protein Latte or Freeze for the Marshmallow Dream.The company's brand portfolio offers the Dutch Bros Rebel energy drink, specialty coffee, teas, nitrogen-infused cold brew, lemonades and sodas among others.What’s More to Know About BROS?Shares of this Zacks Rank #2 (Buy) company have gained 33% in the past six months, outperforming the industry’s 13.8% rise. Image Source: Zacks Investment Research Much of this growth is attributed to the company’s robust results in third-quarter 2024. The company reported better-than-expected results, while both earnings and revenues increased year over year during the third quarter. Gains from the company’s strategic and operational initiatives aided the results. The company’s brand is resonating well with customers, evident from the highest same-shop transaction growth quarter in two years, outside of the Leap Day’s impact. The company saw 28% growth in revenues and a 2.7% rise in systemwide same-shop sales, which topped management’s expectations. It accelerated the mobile-order rollout in the quarter with 90% system and 96% company-operated shop coverage as of Sept. 30, 2024.Its real-estate strategy is working well, as evident from solid new shop productivity. The company’s store-opening endeavors also bode well. BROS has been making key investments in its development and construction teams, whereas the company’s pipeline for 2025 is sturdy. Such efforts poise the company well for growth.Other Stocks to Consider in Consumer Staples SpaceFreshpet, Inc. FRPT, a pet food company, delivered a trailing four-quarter average earnings surprise of 132.9%. FRPT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Freshpet’s current financial-year sales and EPS indicates growth of 27.3% and 224.3%, respectively, from the prior-year levels.Vital Farms VITL, which provides pasture-raised products, presently flaunts a Zacks Rank of 1. The consensus estimate for Vital Farms’ current financial-year sales and EPS indicates growth of 27.3% and 88.1%, respectively, from the prior-year levels.VITL delivered a trailing four-quarter average earnings surprise of 48.5%.McCormick & Company MKC, manufacturer and distributor of spices, seasonings, specialty foods and flavors, currently carries a Zacks Rank #2. MKC delivered a trailing four-quarter average earnings surprise of 13.8%.The Zacks Consensus Estimate for MKC’s current financial-year sales and EPS indicates growth of 0.6% and 8.2%, respectively, from the year-ago figures.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Freshpet, Inc. (FRPT): Free Stock Analysis Report McCormick & Company, Incorporated (MKC): Free Stock Analysis Report Vital Farms, Inc. (VITL): Free Stock Analysis Report Dutch Bros Inc. (BROS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks