Dutch Bros Inc. shares hit a 52-week low around $44.50 on Wednesday, dropping to $44.22 and marking a 30.9% decline over the past year.
The stock fell in after-hours trading even as the coffee chain reported better-than-expected second-quarter results. Adjusted earnings came in at $0.33 per share on revenue of $550.85 million, surpassing Wall Street estimates of $0.29 per share and $524.8 million in sales. Revenue growth over the trailing twelve months stood at 29.7%.
Investors appeared to set aside the quarterly beat, instead focusing on concerns about slower near-term sales and persistent cost pressures. The stock carries a high beta of 2.29 and trades at a P/E ratio of 63.4.
Despite the sell-off, some analysts remain constructive. UBS reiterated a Buy rating with an $85 price target, while Mizuho maintained an Outperform rating and an $80 price target. InvestingPro flagged the stock as undervalued relative to its fair value, placing it on its Most Undervalued Stocks list, and noted that analysts anticipate continued sales growth through the year.
