In a report released today, Sara Senatore from Bank of America Securities maintained a Buy rating on Dutch Bros Inc (BROS – Research Report), with a price target of $86.00.
Sara Senatore has given her Buy rating due to a combination of factors that highlight Dutch Bros Inc’s potential for growth and profitability. The company has implemented a variety of top-line initiatives under its current management, which are still in their early stages but show promising signs of success. Notably, the positive impact of digital spending on traffic growth in Texas demonstrates the effectiveness of their paid media strategy. Additionally, the introduction of mobile payment and loyalty programs is expected to increase customer frequency, while the planned rollout of food offerings in 2026 is anticipated to drive further transactions.
Sara Senatore also points to the company’s strategic market planning and site selection, which have resulted in impressive new unit volumes, particularly in the Southern California and Southwest markets. The company’s targeted restaurant-level margin of 30% is seen as appropriate, balancing customer value, employee value, and return on investment. Furthermore, Dutch Bros’ growth algorithm, which projects a 20% top-line CAGR and 20%+ adjusted EBITDA CAGR, is viewed as conservative, with potential for outperformance given the opportunities in mobile and food channels. These factors collectively support the Buy rating with a price objective of $86.
Senatore covers the Consumer Cyclical sector, focusing on stocks such as Yum! Brands, Shake Shack, and Chipotle. According to TipRanks, Senatore has an average return of 5.9% and a 54.37% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $94.00 price target.