Dutch Bros: Sustained Earnings Momentum, Operating Leverage, and Long-Term Expansion Underscore Buy Rating

William Blair analyst Sharon Zackfia has reiterated their bullish stance on BROS stock, giving a Buy rating on March 2.

Sharon Zackfia has given his Buy rating due to a combination of factors tied to Dutch Bros’ earnings momentum and operating leverage. She expects solid adjusted EPS growth through 2026, with margins benefiting from SG&A efficiencies that exceed management’s own guidance, while top-line forecasts remain intact and quarterly patterns are simply smoothed rather than downgraded.

Sharon Zackfia’s rating is based on the view that, despite the recent share price rebound, the stock still trades below prior levels and can be supported by sustained 20%-plus profit expansion. She also sees substantial long-term runway, projecting a path to thousands of U.S. stores and multibillion-dollar annual revenue and EBITDA, while acknowledging risks around same-store sales pressure from market infill and geographic expansion further east.

In another report released on March 2, Goldman Sachs also upgraded the stock to a Buy with a $75.00 price target.