Shares of Dutch Bros rose almost 13% after the coffee-chain operator swung to a second-quarter profit and named a former Starbucks executive as its next chief executive officer.
The stock climbed to $31.56 in midday trading. Over the past 12 months, the stock is down about 26%, compared with a gain of more than 8% for the S&P 500 over that same period.
Dutch Bros on Tuesday said Christine Barone, who joined the company earlier this year, will transition into the role of CEO, effective Jan. 1, 2024. Barone was previously CEO of True Food Kitchen and held various leadership roles at Starbucks.
The company also reported a second-quarter profit of $2.75 million, or 5 cents a share, compared with a loss of $906,000, or 2 cents a share, in the same period last year.
Adjusted earnings of 13 cents a share topped the 6 cents a share that analysts surveyed by FactSet were expecting.
Sales rose more than 34% to $249.9 million, but fell shy of the $253.4 million that analysts were expecting.