William Blair analyst Sharon Zackfia has maintained their bullish stance on BROS stock, giving a Buy rating today.
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Sharon Zackfia’s rating is based on Dutch Bros Inc’s impressive performance in the second quarter, which exceeded expectations across various financial metrics. The company reported a remarkable 28% revenue growth, surpassing the consensus estimate of 24%, and achieved a record unit-level margin of 31.1%, which was an increase of 30 basis points. This strong performance dispels concerns that competition from Starbucks would hinder Dutch Bros’ growth.
Additionally, Dutch Bros demonstrated robust new unit productivity and a significant 37% growth in adjusted EBITDA, well above the consensus of 15%. The company also experienced a 6.1% rise in systemwide comparable sales, driven by accelerating traffic trends and an increase in average ticket size. The success can be attributed to effective advertising strategies, strong seasonal beverage offerings, and increased brand awareness, particularly in newer markets. These factors collectively support Zackfia’s Buy rating for Dutch Bros Inc.
In another report released today, Barclays also maintained a Buy rating on the stock with a $92.00 price target.