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BROS.US
id: 593

Dutch Bros Inc. (BROS) Misleading Case

S.D. New York
Court
23-CV-01794
Case number
01 May 2023
Lead Plaintiff motion deadline
  • Dutch Bros Inc. (BROS) released poor financial results contrary to previous financial representations.
  • Dutch Bros’ share price fell 26.9%, thereby injuring investors.
  • Investors suspect Dutch Bros Inc. (BROS) & its Leaders of multiple financial misrepresentations.
On May 11, 2022, Dutch Bros Inc. (BROS) announced poor financial results for Q1 2022. Therein, the Company reported:
  • a net loss of $16.3 million, compared to a net loss of $4.8 million for Q1 2021.
  • 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.
Company's CEO Ricci explained: “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, Dutch Bros’ share price fell 26.9%, thereby injuring investors.

Going back, on March 1, 2022, Dutch Bros the conference Company's CFO and CEO 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. For example, Jonathan “Joth” Ricci stated that, while Dutch Bros is “not immune to margin pressures,” the Company was “managing it appropriately” and that “we are feeling good as we enter ‘22 with the trajectory of our margins, given everything going on.” Compay's CFO Charles L. Jemley similarly stated “we’re just not feeling compression in margins.”

Taking all representations and consequent results into account, Investors have grounds to suspect that the Company and its Leaders made multiple financial misrepresentations that in turn led to damages for shareholders.
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Negligence
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
11 May 2022
Filing date
01 March 2023
Lead Plaintiff Deadline
01 May 2023
Collecting participants…

Dutch Bros Inc

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segment...

    Ticker
    BROS.US
    ISIN
    US26701L1008
    CIK
    1866581
    Sector
    Consumer Cyclical
    Industry
    Restaurants
    Country
    USA
    Address
    110 SW 4th Street, Grants Pass, OR, United States, 97526