Dutch Bros Inc (BROS) AI Stock Analysis

• Market Cap: $9.85B
• Dividend Yield: N/A
• Average Volume (3M): 3.74M
• Price to Earnings (P/E): 175.9
• Beta (1Y): 1.93
• Revenue Growth: 32.64%
• EPS Growth: 943.64%
• Country: US
• Employees: 18,000
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Restaurants
• EPS (TTM): 0.34
• Shares Outstanding: 125,170,310
• 10 Day Avg. Volume: 4,297,980
• 30 Day Avg. Volume: 3,739,001
• PEG Ratio: 0.19
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.88
• Price to Cash Flow (P/CF): 40.50
• P/FCF Ratio: 38.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $82.00
• Price Target Upside: 35.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

Dutch Bros Inc. earns a score of 66, driven by strong financial performance and positive earnings call guidance. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential short-term bearish momentum. The company's strategic expansion and revenue growth are significant strengths, but margin pressures and reliance on debt slightly dampen the outlook.

Positive Factors

Brand and Operating Model

Dutch Bros is viewed as having a unique brand and operating model with high sales and margin visibility, making its long-term growth potential attractive.

Sales Initiatives

Multiple company-specific drivers of upside are in place, suggesting that current growth expectations may be conservative.

Same-Store Sales Growth

Dutch Bros Inc. experienced stronger than expected same-store sales growth, indicating robust performance.

Negative Factors

CPG Expansion

Immediate stock weakness was perhaps a function of 1QTD comps vs expectations, or some questions about the newly announced CPG expansion.

Market Contribution

The large benefit from sales uptick in newer markets is unlikely to remain as significant a contributor in the future.

Dutch Bros Inc Business Overview & Revenue Model

Company Description

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.

How the Company Makes Money

Dutch Bros Inc generates revenue primarily through the sale of beverages and related products at its drive-thru coffee locations. The company operates a combination of company-owned and franchised stores, with income derived both from direct sales in company-operated locations and franchise fees from its franchise partners. Franchisees pay initial franchise fees, royalties on sales, and contribute to marketing funds, which support the brand's growth and visibility. Additionally, Dutch Bros benefits from merchandise sales, including branded apparel and accessories, which complement its core beverage offerings. Strategic partnerships and community engagement initiatives further enhance brand loyalty and customer retention, contributing to the company's overall earnings.

Dutch Bros Inc Financial Statement Overview

Summary

Dutch Bros Inc. displays a positive financial trajectory with substantial revenue growth and improving profit margins. The balance sheet shows moderate leverage with improving equity returns, while cash flow management is strong, emphasizing the company's ability to generate cash and invest in growth. However, the moderate reliance on debt and relatively low net margins warrant cautious optimism.

Income Statement

Dutch Bros Inc. has shown a robust revenue growth trajectory with a notable Revenue Growth Rate of 32.7% from 2023 to 2024. The Gross Profit Margin improved to 26.5% in 2024, reflecting efficient cost management. The Net Profit Margin increased to 2.8%, indicating improved profitability, although it remains relatively low. Both EBIT and EBITDA margins have shown positive trends, with EBIT Margin at 8.3%, highlighting operational efficiency improvements.

Balance Sheet

The company's Debt-to-Equity Ratio stands at 1.35 in 2024, suggesting a moderate reliance on debt. The Return on Equity (ROE) improved to 6.6%, showing increased efficiency in generating returns on equity. The Equity Ratio of 21.5% indicates a solid equity base, though there is room for improvement in reducing leverage.

Cash Flow

Dutch Bros Inc. demonstrates strong cash flow management with a Free Cash Flow to Net Income Ratio of 6.99. The Operating Cash Flow to Net Income Ratio of 6.99 in 2024 reflects effective conversion of earnings into cash. Although Free Cash Flow Growth Rate is not applicable due to negative free cash flow in previous years, current positive free cash flow is a positive indicator.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.28B	965.78M	739.01M	497.88M	327.41M
	Gross Profit
340.13M	251.30M	180.92M	151.76M	115.75M
	EBIT
106.09M	46.22M	-2.61M	-113.27M	10.67M
	EBITDA
204.91M	118.31M	44.50M	-87.25M	26.54M
	Net Income Common Stockholders
35.26M	1.72M	-4.75M	-14.04M	5.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
293.35M	133.54M	20.18M	18.51M	31.64M
	Total Assets
2.50B	1.76B	1.19B	554.95M	259.66M
	Total Debt
723.15M	676.58M	625.42M	151.93M	95.12M
	Net Debt
429.80M	543.04M	605.24M	133.43M	63.48M
	Total Liabilities
1.74B	1.09B	934.38M	344.76M	183.67M
	Stockholders Equity
537.37M	364.35M	129.12M	93.50M	75.99M
Cash Flow		Free Cash Flow
24.69M	-88.54M	-128.00M	-38.07M	12.97M
	Operating Cash Flow
246.43M	139.91M	59.88M	80.38M	53.55M
	Investing Cash Flow
-212.07M	-227.28M	-192.57M	-121.09M	-45.57M
	Financing Cash Flow
125.45M	200.73M	134.36M	27.58M	8.08M

Dutch Bros Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BROS, the sentiment is Negative. The current price of 60.4 is below the 20-day moving average (MA) of 61.92, below the 50-day MA of 66.99, and above the 200-day MA of 48.26, indicating a neutral trend. The MACD of -1.26 indicates Positive momentum. The RSI at 41.38 is Neutral, neither overbought nor oversold. The STOCH value of 21.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BROS.

Dutch Bros Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBUX	70 Outperform	$100.73B	28.66	-47.07%	2.66%	-1.48%	-17.32%
CAVA	69 Neutral	$10.63B	83.56	20.58%	―	32.25%	873.48%
SHAK	68 Neutral	$3.73B	372.38	2.23%	―	15.18%	-48.78%
BROS	66 Neutral	$9.85B	175.94	7.82%	―	32.64%	943.64%
WEN	64 Neutral	$2.57B	13.88	68.30%	7.62%	2.98%	-2.58%
Sector *	59 Neutral	$11.76B	10.11	-0.70%	3.92%	1.27%	-16.30%
SG	47 Neutral	$2.67B	―	-19.46%	―	15.89%	22.07%

Dutch Bros Inc Corporate Events

Dutch Bros Inc Appoints Kory Marchisotto to Board

On February 13, 2025, Dutch Bros Inc. expanded its Board of Directors to include Kory Marchisotto, effective February 18, 2025. Marchisotto, known for her expertise in engaging Gen Z and Gen Alpha customers, serves as Chief Marketing Officer at e.l.f. Beauty and brings a wealth of experience from her nearly 30-year career in marketing. Her appointment as an independent director is expected to bolster Dutch Bros’ brand and support its customer-centric culture and growth strategy.

Dutch Bros Inc. Reports Strong 2024 Financial Growth

Dutch Bros Inc. reported significant growth in its financial results for the fourth quarter and fiscal year 2024, achieving a 35% year-over-year revenue growth in the fourth quarter and a 32.6% increase for the year. The company attributes its impressive performance to successful strategic initiatives like innovation, paid media, and its loyalty program, which have driven transaction growth and positioned the brand well for future expansion. The company opened 151 new shops in 2024 and projects continued growth with plans to open at least 160 new locations in 2025.

Dutch Bros Inc Expands and Revises CEO Compensation

On January 21, 2025, Dutch Bros Inc. subsidiaries announced their intention to draw $50 million from their delayed draw term loan facility before its expiration on February 4, 2025. This financial move is part of their strategy to utilize funds for general corporate purposes, including expansion through building new shops. The loan is part of a credit facility with JPMorgan Chase and is bound by financial and negative covenants until its maturity on February 28, 2027. Additionally, on January 16, 2025, the company revised the compensation package for CEO Christine Barone, increasing her base salary to $850,000 and adjusting her bonus and stock awards based on performance metrics.

Dutch Bros Inc. Celebrates 1,000th Shop Milestone

Dutch Bros Inc. is set to open its 1,000th shop in February in the Orlando market, marking a significant milestone in its expansion strategy. The company will also highlight its growth plans at an Investor Day event in Phoenix, Arizona, and participate in the 27th Annual ICR Conference in Orlando, further demonstrating its commitment to engaging with investors and stakeholders.