SAN DIEGO, March 06, 2023 (GLOBE NEWSWIRE) --
The Class: Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Dutch Bros Inc. (NYSE: BROS) securities between March 1, 2022 and May 11, 2022, for violations of the Securities Exchange Act of 1934. Dutch Bros operates and franchises drive-thru coffee shops.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Dutch Bros. Shareholders who want to act as lead plaintiff for the class must file their papers by May 1, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case аbout: Dutch Bros Inc. (BROS) Misled Investors Regarding its Business Prospects
According to the complaint, during the class period, defendants failed to disclose that the Company was experiencing increased costs and expenses and as a result, the Company was experiencing increased margin pressure and decreased profitability in the first quarter of 2022.
On March 1, 2022, Dutch Bros held a conference call to discuss its fourth quarter and full year 2021 results. On the call, Defendants made numerous statements reassuring investors that the Company’s first quarter 2022 results would be positive, and in particular that the Company’s margins were healthy.
However, on May 11, 2022, the Company issued a press release announcing poor financial results for the first quarter of 2022. Therein, the Company reported a net loss of $16.3 million, compared to a net loss of $4.8 million for the first quarter of 2021. The Company also reported an adjusted net loss of $2.5 million (a loss of $0.02 per share), which fell below the Street’s estimated earnings of $0.01 per share. In explaining the Company's poor performance, Jonathon Ricci, the Company's president and chief executive officer, stated: “we did not perceive the speed and magnitude of cost escalation within the quarter. Dairy, for example, which makes up 28% of our commodity basket, rose almost 25% in Q1.” On this news, the Company's share price fell $9.26, or 26.9%, to close at $25.11 per share on May 12, 2022.
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