Brian Harbour, an analyst from Morgan Stanley, maintained the Buy rating on Dutch Bros Inc. The associated price target remains the same with $84.00.
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Brian Harbour’s rating is based on several positive indicators for Dutch Bros Inc. The company is expected to continue its momentum into 2026, driven by an attractive and credible unit growth path. The addition of food items to their offerings is anticipated to be successful, enhancing brand momentum and increasing awareness, which should boost same-store sales and new store productivity. Despite some recalibration of margins and conservative guidance for 2026, the overall outlook remains positive.
Furthermore, Harbour acknowledges potential challenges such as competition from peers and larger chains like McDonald’s and Starbucks, as well as the sustainability of top-line metrics. However, he believes that Dutch Bros’ strategic approach to food expansion, starting with well-performing stores and gradually scaling up, will mitigate these risks. The company’s conservative stance on growth and its ability to adapt and learn from initial store implementations are seen as strengths that support the Buy rating.