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Dutch Bros Inc (BROS)
NYSE:BROS
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Dutch Bros Inc
(NYSE:BROS)
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Rating:68Neutral
Price Target:
$70.00
▲(33.16% Upside)
Dutch Bros Inc's strong financial performance and positive earnings call sentiment are offset by high valuation concerns and mixed technical indicators. The company's robust growth and expansion plans are promising, but cost pressures and high P/E ratio pose risks.
Positive Factors
Revenue Growth
The significant revenue growth reflects strong market demand and successful expansion strategies, indicating robust business fundamentals and potential for sustained growth.
Expansion and Market Entry
Strategic expansion into new markets like Indiana enhances Dutch Bros' market presence and growth potential, supporting long-term revenue and brand recognition.
Loyalty Program Success
The successful loyalty program boosts customer retention and transaction volume, strengthening revenue streams and customer engagement over the long term.
Negative Factors
Increased Coffee Costs
Rising coffee costs could pressure profit margins, affecting cost management and profitability, posing a challenge to maintaining current financial performance.
Occupancy Costs
Higher occupancy costs from new shops may impact overall cost efficiency, potentially straining margins and affecting the company's ability to scale profitably.
EBITDA Margin Concerns
Challenges in sustaining EBITDA margins could indicate difficulties in cost control and operational efficiency, impacting long-term profitability and financial health.
Dutch Bros Inc (BROS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.74B
Dividend YieldN/A
Average Volume (3M)3.57M
Price to Earnings (P/E)112.8
Beta (1Y)1.97
Revenue Growth29.80%
EPS Growth85.84%
CountryUS
Employees18,000
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.26
Shares Outstanding126,960,280
10 Day Avg. Volume3,920,535
30 Day Avg. Volume3,567,767
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue6.61
Enterprise Value/Gross Profit24.73
Enterprise Value/Ebitda40.88
Forecast
1Y Price Target
$81.87Price Target Upside55.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
Dutch Bros Inc Business Overview & Revenue Model
Company DescriptionDutch 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 MoneyDutch Bros generates revenue primarily through the sale of its beverages at its drive-thru locations. The company's revenue model is based on a high-volume, low-cost structure, allowing it to serve a large customer base efficiently. Key revenue streams include sales from drinks, food items, and branded merchandise. Additionally, Dutch Bros has a loyalty program that encourages repeat business, driving customer retention and increasing average transaction values. The company has also established partnerships with various suppliers for coffee beans and other ingredients, which helps to maintain quality while managing costs. Seasonal promotions and limited-time offerings further contribute to revenue by enticing customers to try new products.
Dutch Bros Inc Key Performance Indicators (KPIs)
Any
Shops by Type
Categorizes the company's retail locations, providing insight into the business model and growth strategy through the mix of company-owned versus franchised stores.
Categorizes the company's retail locations, providing insight into the business model and growth strategy through the mix of company-owned versus franchised stores.
Data provided by:
Main Street Data
Main Street DataDutch Bros Inc Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong positive sentiment with significant revenue growth, expansion into new markets, and substantial improvements in operational efficiencies, despite challenges with increasing coffee costs and occupancy expenses.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Dutch Bros reported a 28% increase in revenue for Q2 2025, amounting to $416 million, compared to the same quarter last year.
Increase in Same-Shop Sales
System same-shop sales growth was recorded at 6.1%, driven by a 3.7% increase in transactions.
Expansion and New Markets
Dutch Bros opened 31 new shops in Q2, including entry into Indiana, reaching a total of 1,043 shops system-wide.
Adjusted EBITDA Growth
The company achieved a 37% increase in adjusted EBITDA, reaching $89 million for the quarter.
Raising Full-Year Guidance
Based on strong performance, Dutch Bros raised its full-year guidance for total revenues, same-shop sales growth, and adjusted EBITDA.
Dutch Rewards Program Success
Approximately 72% of system transactions were attributed to the loyalty program, a 5-point increase from the previous year.
Operational Efficiency Improvements
New shop productivity and operational efficiencies contributed to maintaining high levels of productivity and reducing CapEx per shop by 15%.
Negative Updates
Increased Coffee Costs
Coffee costs are expected to accelerate in the latter half of the year, impacting cost of goods sold.
Occupancy Costs
Year-over-year occupancy costs increased by 80 basis points, primarily due to the impact of occupancy rates from new shops.
Challenges in Marketing Spend Efficiency
Although marketing efforts have been successful, the company acknowledged the need for continuous testing and adjustments to optimize spend efficiency.
Company Guidance
During the Dutch Bros Second Quarter 2025 Earnings Conference Call, the company reported a robust financial performance with a 28% increase in revenue and a 37% growth in adjusted EBITDA. System same-shop sales grew by 6.1%, driven primarily by a 3.7% increase in transactions, and company-operated same-shop sales growth was 7.8%. The company opened 31 new shops in Q2, expanding into Indiana, and plans to open at least 160 new shops in 2025. The system-wide average unit volume (AUV) remained strong at $2.05 million. Dutch Bros also reported a 5-point increase in transactions attributed to its loyalty program, Dutch Rewards, which accounted for 72% of system transactions. As a result of these strong metrics, the company raised its full-year guidance for total revenue, same-shop sales growth, and adjusted EBITDA, projecting total revenues between $1.59 billion and $1.6 billion and adjusted EBITDA between $285 million and $290 million for 2025.Dutch Bros Inc Financial Statement Overview
Summary
Dutch Bros Inc shows strong revenue growth and improved profitability margins. The company has effectively managed leverage and enhanced cash flow generation. However, there are areas for improvement, such as maintaining EBITDA margins.Income Statement
Dutch Bros Inc has demonstrated consistent revenue growth, with a TTM revenue growth rate of 6.68% and a strong gross profit margin of 26.72%. The net profit margin has improved to 3.94% from previous periods, indicating enhanced profitability. However, the EBITDA margin has slightly decreased, suggesting potential cost pressures.78
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 1.23 in the TTM, reflecting better leverage management compared to previous years. Return on equity has increased to 9.97%, indicating improved efficiency in generating profits from shareholders' equity. However, the equity ratio remains moderate, suggesting a balanced but cautious approach to asset financing.65
Positive
Cash Flow
Dutch Bros Inc has shown significant improvement in free cash flow growth, with a TTM growth rate of 125.71%. The operating cash flow to net income ratio of 1.37 indicates strong cash generation relative to net income. The free cash flow to net income ratio has also improved, reflecting better cash management and operational efficiency.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.45B | 1.28B | 965.78M | 739.01M | 497.88M | 327.41M |
| Gross Profit | 388.04M | 340.13M | 251.30M | 180.92M | 153.30M | 115.94M |
| EBITDA | 234.74M | 204.91M | 118.38M | 46.09M | -87.25M | 26.17M |
| Net Income | 57.23M | 35.26M | 1.72M | -4.75M | -12.68M | 5.72M |
Balance Sheet | ||||||
| Total Assets | 2.81B | 2.50B | 1.76B | 1.19B | 554.95M | 259.66M |
| Cash, Cash Equivalents and Short-Term Investments | 254.41M | 293.35M | 133.54M | 20.18M | 18.51M | 31.64M |
| Total Debt | 784.10M | 942.91M | 676.58M | 625.42M | 151.93M | 95.12M |
| Total Liabilities | 1.98B | 1.74B | 1.09B | 934.38M | 344.76M | 183.67M |
| Stockholders Equity | 636.17M | 537.37M | 364.35M | 129.12M | 93.50M | 75.99M |
Cash Flow | ||||||
| Free Cash Flow | 72.89M | 24.69M | -88.54M | -128.00M | -38.07M | 12.97M |
| Operating Cash Flow | 272.48M | 246.43M | 139.91M | 59.88M | 80.38M | 53.55M |
| Investing Cash Flow | -198.56M | -212.07M | -227.28M | -192.57M | -121.09M | -45.57M |
| Financing Cash Flow | -80.43M | 125.45M | 200.73M | 134.36M | 27.58M | 8.08M |
Dutch Bros Inc Technical Analysis
Negative
52.57
Price Trends
63.00
Negative
65.68
Negative
63.93
Negative
Market Momentum
-3.55
Positive
28.23
Positive
7.50
Positive
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 52.57 is below the 20-day moving average (MA) of 61.40, below the 50-day MA of 63.00, and below the 200-day MA of 63.93, indicating a bearish trend. The MACD of -3.55 indicates Positive momentum. The RSI at 28.23 is Positive, neither overbought nor oversold. The STOCH value of 7.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BROS.
Dutch Bros Inc Risk Analysis
Dutch Bros Inc disclosed 65 risk factors in its most recent earnings report. Dutch Bros Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dutch Bros Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $8.74B | 112.76 | 9.99% | ― | 29.80% | 85.84% | |
68 Neutral | $216.21B | 25.95 | -304.06% | 2.34% | 1.17% | 2.09% | |
67 Neutral | $53.74B | 35.43 | 43.70% | ― | 8.57% | 10.72% | |
66 Neutral | $42.38B | 30.16 | -18.65% | 1.83% | 11.30% | -7.82% | |
60 Neutral | $1.54B | 20.71 | -17.38% | 3.91% | -1.46% | 8.10% | |
56 Neutral | $94.79B | 36.07 | -34.25% | 2.93% | 0.60% | -35.19% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
BROS
Dutch Bros Inc
52.57
20.41
63.46%
CMG
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39.90
-17.27
-30.21%
MCD
McDonald's
302.99
6.92
2.34%
PZZA
Papa John's International
47.92
-2.97
-5.84%
SBUX
Starbucks
85.64
-9.37
-9.86%
YUM
Yum! Brands
153.94
17.36
12.71%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.