Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match.
The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.
Shares of coffee chain Dutch Bros (NYSE:BROS) fell 5.2% in the afternoon session after an analyst at William Blair lowered the company's third-quarter earnings per share (EPS) estimate. The investment banking firm William Blair revised its third-quarter 2025 earnings per share (EPS) forecast for the coffee chain down to $0.16 per share from a previous estimate of $0.17. This downward revision by the analyst appeared to be the primary catalyst for the negative sentiment and subsequent price drop. The consensus estimate for the company's full-year earnings remained at $0.57 per share. No other significant company-specific news was reported that could have explained the stock's movement.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Portillo's (NASDAQ:PTLO) and the best and worst performers in the traditional fast food industry.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Arcos Dorados (NYSE:ARCO) and the rest of the traditional fast food stocks fared in Q1.
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Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the traditional fast food industry, including Starbucks (NASDAQ:SBUX) and its peers.
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Nearly four years after its IPO, Dutch Bros now has the third highest revenue of coffee chains in the United States, trailing only Starbucks and Dunkin’.
China-based coffee chain Luckin Coffee opened its first U.S. stores in New York City, sparking a fresh breakout. Stocktwits Sentiment implies retail is betting on even higher prices ahead.
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the traditional fast food industry, including Dutch Bros (NYSE:BROS) and its peers.
