4 Reasons to Buy Dutch Bros Stock Like There's No Tomorrow

Upstart coffee and hand-crafted beverages chain Dutch Bros (NYSE: BROS) released its earnings report on Aug. 7. The company grew sales and adjusted earnings per share (EPS) by 30% and 46%, respectively, topping analysts' expectations. Despite these impressive results, the market sent Dutch Bros' stock down roughly 21% as the company admitted that its new store openings would be closer to the lower end of its 150- to 165-shop count in 2024. While this reaction to the potential of slowing expansion plans is understandable for a growth stock like Dutch Bros, wiping away one-fifth of the company's value in 24 hours seems like an overreaction. Thanks to this significant drop -- and the four reasons I will discuss below -- I can't help but be optimistic about Dutch Bros shares now.Even though the company more than doubled its shop count from 441 locations in 2020 to today's 900-plus stores, roughly 75% of Dutch Bros' locations are in just five states: Washington, Oregon, California, Arizona, and Texas. This unique density of locations in certain states is attractive in regard to the company's long-term potential for two reasons.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool