Dutch Bros Inc. shares plummeted 11.63% during intraday trading on Thursday, extending a sharp decline that began after the company released its first-quarter financial results. The coffee chain's stock came under sustained selling pressure as investors reassessed growth expectations despite the company reporting revenue that exceeded Wall Street forecasts.

The selloff appears to be driven by a combination of factors including concerns about the sustainability of the company's rapid growth amid a weaker consumer environment and intense competition. While Dutch Bros reported first-quarter revenue of $464.4 million, easily beating analysts' expectation of $450 million, and raised its full-year guidance, investors expressed worries that expectations had run too high ahead of the report.

Valuation concerns also weighed on the stock, which was trading at nearly 60 times forward earnings before the decline - significantly higher than Starbucks' 38 times multiple. Analysts noted that despite the strong results and guidance increase, market participants are questioning whether the beverage chain can maintain its fast growth trajectory given the competitive landscape and economic headwinds.