Coffee chain Dutch Bros sinks after soft sales outlook

By Reuters News

** Shares of coffee chain Dutch Bros BROS.N sink 21.1% to $34.69, a 2-year low, on Thurs after softer-than-expected near-term sales outlook

** BROS shares on course for biggest one-day pct drop since May 12, 2022; weakness comes amid overall selloff in equities

** Tempe, Arizona-based firm late Weds said Q3 rev grew ~30% yr/yr to $549.8 mln, slightly beating LSEG estimate of $547.4 mln

** Same-store sales (SSS) in Q3 rose 5.4% on increased customer visits, co said

** At least 9 brokerages reduced their PTs, as analysts pointed to co's lowered 2026 SSS guidance to at least 5% from prior guidance of 5%-6% growth

** TD Cowen, which rates BROS 'buy', says management did a good job on the earnings call making the case that lowered guidance is driven more by cyclical factors (high gas prices and inflation) than structural factors (competition)

** 25 of 26 brokerages rate stock "strong buy" or "buy", 1 "hold"; median PT of $55 down from $77 a month ago

** With the move, stock down 43% YTD

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