If anyone's been following the stock I'm sure you know it's been getting dismantled as of late.. down from high 60s to $50-51 after earnings then another huge leg down leading it to as low as $39 IIRC (last friday)
I currenetly have a good amount of shares but have already trimmed over 30% of my position out of fears that it's only gonna continue to keep going down.. I'm genuinely confused as to why they're down so much if their recent ER was positive and their drive thrus are as popular as ever.. (only concern being 7brew starting to outsell them and also bidding for that salad shop)
Is there something specific I'm missing in the underlying business? is this just the stock taking a massive correction cuz of its really high PE?
afaik, revenue growth has remained robust (up over 30% YoY in recent quarters), unit expansion continues at a healthy clip, and margins are improving but slowlly lol. There seems to also be a lot of insider selling past few quarters as well as a really high short rate.
I'm at a point of dilemma since i genuinely like and believe in the company but with how that discretionary f&B sector has been getting wrecked as of late (JMKE ipo, cava, CELH, etc..) it might make more sense to wait till lower price like $30-34 to add to my position again..
What are your takes if ur in BROS or keepin an eye on it?