Dutch Bros shares fell despite higher revenue, as investors worried about lower-than-expected earnings and a $106.4 million stock sale by a company insider.

  • Dutch Bros Executive Chairman Travis Boersma sold 2.39 million shares worth about $106.4 million. 
  • Dutch Bros’ Q3 revenue rose 30% to $549.8 million, but EPS missed Street estimates. 
  • On Stocktwits, retail sentiment jumped to ‘extremely bullish’ from ‘bearish’. 

Dutch Bros Inc. (BROS) stock plunged overnight as third-quarter (Q3) earnings miss and a $106.4 million stock sale by Executive Chairman Travis Boersma rattled investors, overshadowing revenue growth even as retail traders doubled down on the coffee chain’s long-term potential. 

Dutch Bros stock traded over 15% lower overnight. The stock had registered gains for the past three weeks. 

Dutch Bros Executive Chairman Discloses Multiple Sales 

Travis Boersma disclosed the sale of nearly 2.4 million shares of the coffee chain operator over three trading sessions, according to a SEC filing. The transactions took place between Nov. 2 and Nov. 4, at prices ranging from approximately $44.06 to $45.14 per share.

Boersma reported the transactions through two entities, DM Trust Aggregator LLC and DM Individual Aggregator LLC. The disclosed sales covered 1,557,332 shares through the trust entity and another 831,480 shares through the individual aggregator, bringing the combined total to 2,388,812 shares for about $106.4 million. 

The largest reported transaction involved 622,101 shares sold through DM Trust Aggregator LLC on Nov. 2 at an average price of $44.5452. Another 499,041 shares changed hands through the same entity on Nov. 4 at an average price of $44.5891.

BROS’ Revenue Tops Estimates, But Earnings Fall Short 

In Q3, Dutch Bros’s revenue climbed 30% year-on-year to $549.8 million, beating the analysts' consensus estimate of $548.4 million, as per Fiscal.ai.  However, earnings of $0.20 per share missed the estimate of $0.25. 

Sales at company-owned stores increased 5.4%, with customer visits rising 1%. Across all Dutch Bros locations, sales grew 4.4%, while customer visits increased 0.4%. 

Dutch Bros now expects full-year revenue of at least $2.1 billion, with comparable-store sales growth forecast at a minimum of 5%.

What Are BROS Retail Traders Saying

However, on Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘bearish’. The stock recorded a 1,323% surge in message volume over the past week with 0.4% gain in watchers. 

A user said, “30-35 nice entry point... You keep 2-3 years and you see 3 digits for sure. Can go below 30 obviously but nobody knows…”

Another user appreciated the company’s strategy, saying that Dutch Bros opens multiple drive-thru locations close to each other in the same city to strengthen its local presence, keep competitors away and reduce long queues.  

A third user said, “Thank you so much for the dip.”

BROS stock has declined 28% year-to-date.  

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