Long Position on BROS @ $55.50 on 4/1/2022 (Fundamentals)

Dutch Bros Inc. (BROS) operates and franchises drive-thru shops. 

It offers Dutch Bros hot and cold espresso-based beverages, and cold brew coffee products, as well as Blue Rebel energy drinks, tea, lemonade, smoothies, and other beverages through company-operated shops and online channels.

As of December 31, 2021, it operated 538 drive-thru coffee locations in Arizona, California, Colorado, Idaho, Kansas, Nevada, New Mexico, Oklahoma, Oregon, Texas, Utah, and Washington. 

On March 1st, Dutch Bros Inc  reported a Quarter December 2021 loss of $0.02 per share on revenue of $140.1 million. The consensus on revenue of $126.0 million. 

The company said it expects 2022 revenue of $700.0 million to $715.0 million. The previous revenue estimate was $669.83 million for the year ending December 31, 2022. 

Shares are heading higher in an upward trading channel. Presently shares are sitting at the lower boundary of the said channel. Higher share prices are expected.

Entry Point: $55.50

Trading Range: $32.42 - $81.40

Stop Loss: $52.50

Target Price: $61.05

Position closed on 4/26/2022 at price of $52.00 with a -6.31% loss in 25 days.

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