Dutch Bros Inc. BROS is scheduled to report first-quarter 2026 results on May 6.
BROS’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 41.6%.
Trend in the Estimate Revision of BROS
The Zacks Consensus Estimate for first-quarter earnings per share (EPS) is pegged at 16 cents, indicating a rise of 14.3% from 14 cents reported in the year-ago quarter.
Dutch Bros Inc. Price and EPS Surprise
Dutch Bros Inc. price-eps-surprise | Dutch Bros Inc. Quote
For revenues, the consensus mark is pegged at $447.3 million. The metric suggests a rise of 25.9% from the year-ago quarter’s figure.
Let us take a look at how things might have shaped up in the quarter to be reported.
Factors Likely to Shape BROS’ Quarterly Results
Dutch Bros’ first-quarter performance is likely to have been supported by same-shop sales growth, continued customer demand and ongoing expansion initiatives. The company guided to system same-shop sales growth of approximately 4% to 6% in the first quarter, supported by strong January trends.
Unit expansion is expected to have contributed to revenue growth in the first quarter. Dutch Bros expects to open approximately 30 system shops in the quarter, adding to its overall unit base. These openings are expected to contribute to incremental revenues during the period.
The scale of Dutch Rewards and continued adoption of Order Ahead are expected to have supported transactions in the first quarter. Additionally, the ongoing rollout of the food program is likely to have contributed to first-quarter sales.
However, elevated input costs are likely to have pressured profitability in the first quarter. The company expects approximately 200 basis points of cost of goods sold pressure in the quarter, primarily due to higher coffee costs. In addition, costs associated with the food program rollout and higher occupancy-related expenses are expected to have weighed on margins in the to-be-reported quarter.
What Our Model Says About BROS Stock
Our proven model predicts 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, which is exactly the case here.
Earnings ESP for BROS: Dutch Bros currently has an Earnings ESP of +2.85%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Dutch Bros’ Zacks Rank: The company currently has a Zacks Rank #2.
Other Stocks With the Favorable Combination
Here are a few other stocks from the Zacks Retail-Wholesale sector, which, according to our model, also have the right combination of elements to post an earnings beat this reporting cycle.
CAVA Group, Inc. CAVA currently has an Earnings ESP of +11.61% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the to-be-reported quarter, CAVA’s earnings are expected to decline 22.7%. CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 26.5%.
Shake Shack Inc. SHAK currently has an Earnings ESP of +19.41% and a Zacks Rank of 3.
In the to-be-reported quarter, Shake Shack’s earnings are expected to register a 21.4% year-over-year decline. Shake Shack’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.3%.
Sweetgreen, Inc. SG has an Earnings ESP of +6.67% and a Zacks Rank of 3 at present.
In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 9.5% year-over-year decline. Sweetgreen’s earnings matched estimates in one of the trailing four quarters and missed in the other three, with an average miss of 38%.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
