Dutch Bros Inc (BROS) AI Stock Analysis

• Market Cap: $10.20B
• Dividend Yield: N/A
• Average Volume (3M): 3.48M
• Price to Earnings (P/E): 124.6
• Beta (1Y): 2.06
• Revenue Growth: 28.93%
• EPS Growth: 69.59%
• Country: US
• Employees: 18,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.19
• Shares Outstanding: 127,031,340
• 10 Day Avg. Volume: 2,480,514
• 30 Day Avg. Volume: 3,480,505
• PEG Ratio: 0.17
• Price to Book (P/B): 11.14
• Price to Sales (P/S): 4.67
• P/FCF Ratio: 242.33
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 4.97
• Enterprise Value/Gross Profit: 18.89
• Enterprise Value/Ebitda: 31.96
• 1Y Price Target: $75.62
• Price Target Upside: 21.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 0.69
• Revenue Forecast (FY): $1.62B

• Rating: 69 Neutral
• Price Target: $64.00 ▲(3.23% Upside)

Dutch Bros Inc shows strong financial performance with robust revenue growth and improving profitability. The earnings call provided optimistic guidance and highlighted successful expansion and customer engagement strategies. However, the high P/E ratio suggests overvaluation, and technical indicators show potential resistance in the longer term. Challenges with cash flow management and increased costs also pose risks.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective expansion strategies, positioning Dutch Bros for sustained future growth.

Expansion Strategy

The aggressive expansion into new states enhances market presence and potential customer base, supporting long-term revenue and brand growth.

Digital and Loyalty Program Success

Strong digital engagement and loyalty program success drive repeat business and customer retention, crucial for long-term revenue stability.

Negative Factors

Increased Coffee Costs

Rising coffee costs can pressure margins, affecting profitability and potentially leading to higher prices or reduced margins.

Higher Preopening Expenses

Increased preopening expenses can strain financial resources, impacting short-term profitability and requiring efficient cost management.

Regulatory Labor Cost Impact

Regulatory-driven labor cost increases can reduce profit margins, necessitating strategic adjustments to maintain financial health.

Dutch Bros Inc Business Overview & Revenue Model

Company Description

Dutch Bros Inc. is a prominent drive-thru coffee chain based in the United States, known for its vibrant and energetic brand culture. Founded in 1992 in Grants Pass, Oregon, the company specializes in serving a variety of coffee beverages, teas, and smoothies, along with a range of customizable options to cater to individual customer preferences. With a strong emphasis on community engagement and customer service, Dutch Bros has expanded rapidly, operating hundreds of locations primarily in the western United States. The company positions itself within the specialty coffee sector, appealing to a youthful and dynamic demographic.

How the Company Makes Money

Dutch Bros generates revenue primarily through the sale of its coffee and beverage products. The company operates a franchise model, allowing for rapid expansion and a diversified revenue stream from franchise fees and royalties. Key revenue streams include direct sales from company-operated locations, franchise royalties, and merchandise sales. Additionally, Dutch Bros benefits from partnerships with various suppliers for coffee beans and other ingredients, which helps maintain product quality and consistency. Seasonal promotions and limited-time offerings also contribute to sales spikes, while a loyalty program encourages repeat business, enhancing customer retention and driving consistent revenue.

Dutch Bros Inc Financial Statement Overview

Summary

Dutch Bros Inc demonstrates strong revenue growth and improving profitability, with effective leverage management. While operational cash flow is robust, the negative free cash flow growth highlights potential challenges in cash management. Overall, the company is on a positive trajectory but should focus on enhancing cash flow stability.

Income Statement

Dutch Bros Inc has shown consistent revenue growth with a TTM growth rate of 5.88%. The company maintains a healthy gross profit margin of 26.72% and a net profit margin of 3.94% in the TTM, indicating profitability improvements. EBIT and EBITDA margins have also improved, reflecting operational efficiency. However, the net profit margin is relatively low, suggesting room for improvement in cost management.

Balance Sheet

The company's debt-to-equity ratio has improved to 1.23 in the TTM, indicating better leverage management compared to previous years. Return on equity has increased to 9.97%, showing enhanced profitability from shareholders' investments. However, the equity ratio remains moderate, suggesting a balanced but cautious approach to financing.

Cash Flow

Operating cash flow has shown strength with a coverage ratio of 1.37, indicating sufficient cash generation to cover net income. However, free cash flow growth is negative at -10.27%, which could be a concern for future investments. The free cash flow to net income ratio is moderate, suggesting a need for improved cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.54B	1.28B	965.78M	739.01M	497.88M	327.41M
Gross Profit	404.76M	340.13M	251.30M	180.92M	153.30M	115.94M
EBITDA	239.22M	204.91M	118.38M	46.09M	-87.25M	26.17M
Net Income	62.08M	35.26M	1.72M	-4.75M	-12.68M	5.72M
Balance Sheet
Total Assets	2.92B	2.50B	1.76B	1.19B	553.70M	259.66M
Cash, Cash Equivalents and Short-Term Investments	267.19M	293.35M	133.54M	20.18M	18.51M	31.64M
Total Debt	1.04B	942.91M	676.58M	625.42M	150.69M	95.12M
Total Liabilities	2.06B	1.74B	1.09B	934.38M	339.97M	183.67M
Stockholders Equity	656.56M	537.37M	364.35M	129.12M	94.52M	75.99M
Cash Flow
Free Cash Flow	65.41M	24.69M	-88.54M	-128.00M	-38.07M	12.97M
Operating Cash Flow	278.14M	246.43M	139.91M	59.88M	80.38M	53.55M
Investing Cash Flow	-212.65M	-212.07M	-227.28M	-192.57M	-121.09M	-45.57M
Financing Cash Flow	-79.44M	125.45M	200.73M	134.36M	27.58M	8.08M

Dutch Bros Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BROS, the sentiment is Positive. The current price of 62 is above the 20-day moving average (MA) of 57.83, above the 50-day MA of 55.92, and above the 200-day MA of 61.93, indicating a bullish trend. The MACD of 1.59 indicates Negative momentum. The RSI at 62.59 is Neutral, neither overbought nor oversold. The STOCH value of 73.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BROS.

Dutch Bros Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMG	73 Outperform	$47.15B	31.43	44.96%	―	7.31%	5.26%
BROS	69 Neutral	$10.20B	124.57	10.53%	―	28.93%	69.59%
MCD	65 Neutral	$223.97B	26.82	―	2.28%	1.26%	2.87%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
YUM	59 Neutral	$41.93B	29.41	―	1.88%	11.60%	-4.33%
PZZA	57 Neutral	$1.34B	36.08	―	4.50%	-0.64%	-60.71%
SBUX	56 Neutral	$96.74B	52.24	―	2.88%	2.80%	-50.71%

Dutch Bros Inc Corporate Events

Dutch Bros Inc Reports Strong Q3 2025 Performance

Dutch Bros Inc. reported a strong financial performance for the third quarter of 2025, with a 25% year-over-year revenue growth and significant increases in same shop sales and transactions. The company opened 38 new shops and raised its full-year guidance for total revenues and same shop sales growth, reflecting confidence in its long-term growth strategy and transaction-driving initiatives.