Dutch Bros Stock to Post Q4 Earnings: Buy Now or Wait for Results?

Dutch Bros Inc. BROS is scheduled to report fourth-quarter 2024 results on Feb. 12, 2025, after the closing bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 33.3%. BROS has an impressive record of surpassing earnings expectations. It has exceeded the consensus mark in the trailing four quarters, the average surprise being 132.4%, as shown in the chart below.BROS Earnings Surprise History Image Source: Zacks Investment Research Trend in Dutch Bros’ Estimate RevisionThe Zacks Consensus Estimate for fourth-quarter earnings is pegged at 2 cents per share, indicating a 50% decline from the 4 cents reported in the year-ago quarter. The consensus estimate has been unchanged in the past 60 days.For quarterly revenues, the consensus mark is pegged at $319.1 million, suggesting an increase of 25.6% from the year-ago quarter’s reported figure.What Our Model Unveils for BROSOur proven model does not conclusively predict an earnings beat for Dutch Bros this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.Earnings ESP: Dutch Bros has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Zacks Rank: The company carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Factors Shaping Dutch Bros’ Q4 PerformanceBROS’ top line in fourth-quarter 2024 is likely to have benefited from seasonal offerings, expansion efforts, and the mobile order and pay rollout. The company’s real-estate strategy and investment in new markets have been proving successful, enhancing new shop productivity. BROS has invested significantly in its development team and processes, positioning the company for continued growth.Dutch Bros has significantly increased its paid advertising investments, focusing on new and mature markets to drive brand awareness. The impacts have been especially notable in Texas, where unaided brand awareness has tripled. These campaigns are likely to have directly contributed to improved shop productivity and transaction growth, ensuring Dutch Bros stays ahead of the competition in emerging markets. Then again, increased digital spending in new and mature markets continues to boost brand awareness and shop productivity.In addition to scaling its footprint, BROS plans to further leverage technology investments, including mobile ordering enhancements and personalized loyalty program offerings, to drive customer engagement and sales. These efforts are likely to have aided the top line.The consensus estimate for company-operated shop revenues is pegged at $290 million, suggesting a 27.8% year-over-year rise. The consensus estimate for franchising and other revenues is pegged at $29 million, implying 8.5% year-over-year growth.However, Dutch Bros’ bottom is likely to have been hurt by high costs. The company is making significant investments in its development and construction teams to strengthen its growth pipeline. While these investments are strategic, they may lead to higher expenses in the short term, impacting net earnings.Price Performance & ValuationBROS shares have skyrocketed 139.7% in the past year compared with the Zacks Retail – Restaurants industry’s 9.4% growth. Over the past year, Dutch Bros has outperformed its peers, including McDonald's Corporation MCD, Kura Sushi USA, Inc. KRUS and Potbelly Corporation PBPB.BROS’s Price Performance Image Source: Zacks Investment Research From a valuation perspective, Dutch Bros’ stock is trading at a premium. The company has a forward 12-month price-to-earnings of 123.3X, significantly above the industry average of 27.16X.ConclusionDutch Bros has demonstrated strong revenue growth and brand expansion, benefiting from investments in technology, advertising and new market penetration. However, despite these positives, the company faces near-term headwinds, including rising operational costs and a significant premium valuation compared with its industry peers. While Dutch Bros continues to expand its footprint and drive customer engagement, the anticipated earnings decline and high forward price-to-earnings ratio suggest limited upside in the short term.Given these factors, existing investors may consider holding on to their positions as the long-term growth strategy remains intact. However, new investors should wait for a more attractive entry point, especially with potential near-term volatility surrounding the upcoming earnings report.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 McDonald's Corporation (MCD): Free Stock Analysis Report Potbelly Corporation (PBPB): Free Stock Analysis Report Kura Sushi USA, Inc. (KRUS): 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