Dutch Bros price target raised to $61 from $59 at Piper Sandler

Piper Sandler analyst Brian Mullan raised the firm’s price target on Dutch Bros (BROS) to $61 from $59 and keeps a Neutral rating on the shares following quarterly results. The system-wide same-store sales result came in well ahead of consensus, and was punctuated by a company-operated same-store sales result of up 10.6%. While the notable top-line strength is clearly a positive, Piper notes that the company-operated shop contribution margin of 28.3% was down 116 bps year-over-year; which one does not typically see when same-store sales are greater than 10%.