tiprankstipranks
Trending News
More News >
Dutch Bros Inc (BROS)
NYSE:BROS
US Market

Dutch Bros Inc (BROS) AI Stock Analysis

Compare
1,612 Followers

Top Page

BR

Dutch Bros Inc

(NYSE:BROS)

Rating:75Outperform
Price Target:
$79.00
▲(13.93%Upside)
Dutch Bros Inc scores well due to strong financial performance, strategic growth plans, and positive earnings call sentiment. However, the high valuation and leveraged balance sheet pose risks. Technical indicators support upward momentum but suggest potential for short-term caution.
Positive Factors
Financial Performance
The company's EBITDA and margins have surpassed expectations, driven by lower costs of goods sold, showcasing efficient cost management.
Growth Strategy
Dutch Bros is experiencing strong momentum with a beat in both same-store sales and traffic, indicating strong customer interest and demand.
Market Expansion
The company is on track to open a significant number of new stores, which is expected to contribute to future growth and market expansion.
Negative Factors
Cost Pressures
Elevated coffee prices, tariffs, and store leadership investments are slight headwinds to margins beginning in 2Q.
Future Earnings Pressure
Some specific cost lines will ramp, making 2Q EBITDA come down based on company comments.
Valuation Concerns
With the stock up approximately 75% in the last year and a valuation premium compared to S&P and SBUX, a more favorable entry point is sought.

Dutch Bros Inc (BROS) vs. SPDR S&P 500 ETF (SPY)

Dutch Bros Inc Business Overview & Revenue Model

Company DescriptionDutch Bros Inc (BROS) is a prominent coffee chain in the United States, known for its drive-thru coffee stands. Founded in 1992, the company operates in the quick-service restaurant sector, primarily focusing on serving a variety of beverages including specialty coffee, smoothies, and energy drinks. With a unique culture and emphasis on customer service, Dutch Bros has developed a strong brand presence, particularly in the western United States.
How the Company Makes MoneyDutch Bros Inc generates revenue through the sale of beverages and related products at its drive-thru locations. The company's primary revenue stream comes from its large network of company-operated and franchised locations, where it sells a wide range of coffee, espresso, cold brew, and other specialty drinks. Dutch Bros also earns income through its proprietary energy drink line, 'Blue Rebel.' The company's earnings are further supported by its franchise model, where it collects initial franchise fees and ongoing royalties from franchisees. This combination of company-operated and franchised stores, along with a diverse beverage menu, constitutes the core of Dutch Bros' revenue model.

Dutch Bros Inc Key Performance Indicators (KPIs)

Any
Any
Shops by Type
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.
Chart InsightsDutch Bros Inc. is aggressively expanding its company-operated shops, with a significant increase since 2019, reflecting a strategic shift towards greater control over operations. The latest earnings call highlights strong revenue growth driven by new shop openings and robust same-shop sales. Despite challenges like tariff and labor cost pressures, the company remains focused on expansion, aiming for 2,029 total shops by 2029. Initiatives like the Dutch Rewards program and innovative product offerings are enhancing customer engagement, supporting this growth trajectory.
Data provided by:Main Street Data

Dutch Bros Inc Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 17.09%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Dutch Bros reported strong financial performance with significant revenue growth and strategic expansion. However, challenges such as cost pressures from tariffs and increased labor costs were noted. Overall, the company's positive momentum and strategic initiatives outweigh the challenges, indicating a positive sentiment.
Q1-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Total revenue increased 29% compared to the same period last year, driven by new shop growth, productivity, and strong system same-shop sales and transaction growth.
Strong New Shop Productivity
30 new shops opened in Q1, with plans to maintain this pace next quarter and accelerate in the second half of the year. New shop productivity continues to be strong.
Rapid Expansion and Strategic Goals
Shop number 1,000 opened in Orlando, Florida, with a goal of reaching 2,029 total shops by 2029, supported by a strong real estate strategy and investment in market planning.
Increased Customer Engagement
Dutch Rewards program increased to 72% of system transactions, a 5-point improvement from last year, enhancing customer engagement and loyalty.
Successful Innovations and Marketing
Innovative products like Sweet Cereal Sips LTO and the Spring Fever Dream Trio drove customer interest, supported by strategic paid advertising efforts in new and mature markets.
Adjusted EBITDA Growth
Adjusted EBITDA grew 20% compared to the same quarter last year, demonstrating effective cost management and operational efficiency.
Negative Updates
Cost Pressures from Tariffs
Anticipated 110 basis points of net COGS margin pressure for the full year, including impacts from tariffs on imported coffee.
Increased Labor Costs
Labor costs increased by 100 basis points year-over-year due to wage investments, impacting company-operated shop margins.
Company Guidance
During the Dutch Bros Inc. First Quarter 2025 Earnings Conference Call, the company provided guidance reflecting strong growth and strategic initiatives. Total revenue for Q1 2025 increased by 29% year-over-year to $355 million, driven by new shop openings and strong same-shop sales growth of 4.7%. The company reported adjusted EBITDA growth of 20% to $63 million. Dutch Bros plans to open at least 160 new shops in 2025, with a long-term goal of 2,029 total shops by 2029. Initiatives such as order ahead, which accounted for 11% of transaction mix, and the Dutch Rewards program, contributing to 72% of system transactions, are bolstering customer engagement and operational efficiency. The company is also testing a food program, aiming to enhance morning daypart sales. Despite potential macroeconomic uncertainties, Dutch Bros reiterated its full-year guidance, expecting total revenues between $1.555 billion and $1.575 billion and system same-shop sales growth of 2% to 4%.

Dutch Bros Inc Financial Statement Overview

Summary
Dutch Bros Inc demonstrates robust financial health with strong revenue growth and improving profitability margins. The balance sheet reflects a stable equity position, though leverage remains a concern. Cash flow management is effective, supporting ongoing investments and operations.
Income Statement
85
Very Positive
Dutch Bros Inc shows strong revenue growth with a TTM revenue increase of 6.25% compared to the previous annual period. Gross Profit Margin stands at 26.3%, and the Net Profit Margin is 3.2%, indicating profitability improvements. EBIT and EBITDA margins are 8.2% and 14.9% respectively, reflecting efficient cost management and operational performance.
Balance Sheet
75
Positive
The Debt-to-Equity Ratio is 1.7, suggesting a moderate level of leverage. Return on Equity (ROE) is 7.3%, indicating effective use of equity. The Equity Ratio of 21.7% shows a solid equity base, but the relatively high debt levels could pose risks in economic downturns.
Cash Flow
78
Positive
Free Cash Flow has grown by 30.8% in the TTM, showing improved cash generation. The Operating Cash Flow to Net Income Ratio is high at 5.6, indicating strong cash earnings. Free Cash Flow to Net Income Ratio is 0.7, reflecting sound cash management despite high capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.36B1.28B965.78M739.01M497.88M327.41M
Gross Profit358.05M340.13M251.30M180.92M151.76M115.75M
EBITDA202.57M204.91M118.31M44.50M-87.25M26.54M
Net Income43.55M35.26M1.72M-4.75M-14.04M5.72M
Balance Sheet
Total Assets2.77B2.50B1.76B1.19B554.95M259.66M
Cash, Cash Equivalents and Short-Term Investments316.44M293.35M133.54M20.18M18.51M31.64M
Total Debt1.02B942.91M676.58M625.42M151.93M95.12M
Total Liabilities1.97B1.74B1.09B934.38M344.76M183.67M
Stockholders Equity599.06M537.37M364.35M129.12M93.50M75.99M
Cash Flow
Free Cash Flow32.30M24.69M-88.54M-128.00M-38.07M12.97M
Operating Cash Flow242.12M246.43M139.91M59.88M80.38M53.55M
Investing Cash Flow-200.14M-212.07M-227.28M-192.57M-121.09M-45.57M
Financing Cash Flow11.74M125.45M200.73M134.36M27.58M8.08M

Dutch Bros Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price69.34
Price Trends
50DMA
66.93
Positive
100DMA
66.81
Positive
200DMA
56.28
Positive
Market Momentum
MACD
0.19
Positive
RSI
50.50
Neutral
STOCH
47.71
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 69.34 is below the 20-day moving average (MA) of 70.50, above the 50-day MA of 66.93, and above the 200-day MA of 56.28, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 50.50 is Neutral, neither overbought nor oversold. The STOCH value of 47.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BROS.

Dutch Bros Inc Risk Analysis

Dutch Bros Inc disclosed 64 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$11.41B180.018.57%30.42%108.41%
73
Outperform
$5.91B482.002.70%14.07%-47.47%
70
Outperform
$104.67B33.48-47.07%2.65%-0.50%-24.28%
WEWEN
70
Outperform
$2.22B12.3490.40%4.84%2.18%-5.15%
66
Neutral
$9.01B64.9721.73%32.11%378.62%
SGSG
58
Neutral
$1.60B-19.79%11.10%18.05%
56
Neutral
HK$23.97B4.08-1.57%8.88%0.06%-64.88%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BROS
Dutch Bros Inc
69.34
27.49
65.69%
SBUX
Starbucks
92.11
16.86
22.41%
WEN
Wendy's
11.56
-3.96
-25.52%
SHAK
Shake Shack
138.48
51.91
59.96%
SG
Sweetgreen
13.59
-15.74
-53.67%
CAVA
CAVA Group, Inc.
77.89
-17.38
-18.24%

Dutch Bros Inc Corporate Events

Private Placements and Financing
Dutch Bros Inc Amends Credit Facility Agreement
Neutral
May 30, 2025

On May 29, 2025, Dutch Bros Inc. subsidiaries amended and restated their $650 million senior secured credit facility with JPMorgan Chase Bank, N.A., replacing the 2022 Credit Facility. The new 2025 Credit Facility maintains the same credit availability, including a $500 million revolving credit facility and a $150 million term loan facility, with additional options for increasing the facility size. The facility includes financial covenants and restrictions on additional debt, asset liens, mergers, and other investments. The Loan Parties drew $150 million in term loans and $50 million in revolving loans, fully repaying and terminating the 2022 Credit Facility.

The most recent analyst rating on (BROS) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Dutch Bros Inc stock, see the BROS Stock Forecast page.

Executive/Board Changes
Dutch Bros Announces Departure of President of Operations
Neutral
May 22, 2025

On May 21, 2025, Dutch Bros Inc. announced that Sumitro Ghosh will conclude his service as President of Operations effective June 2, 2025, and the role will be eliminated. Mr. Ghosh is entitled to severance benefits as per the company’s severance plan, highlighting changes in the company’s executive structure.

The most recent analyst rating on (BROS) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Dutch Bros Inc stock, see the BROS Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Dutch Bros Inc Appoints New Principal Accounting Officer
Neutral
May 16, 2025

On May 13, 2025, Dutch Bros Inc. appointed Nicholas Daddario as the principal accounting officer. Mr. Daddario, who joined the company in January 2025, has a rich background in accounting, having served as Chief Accounting Officer at GoDaddy Inc. and held various roles at Starwood Hotels & Resorts Worldwide, Inc. On the same day, Dutch Bros Inc. held its 2025 annual stockholders’ meeting, where all ten director nominees were elected, KPMG LLP’s appointment as the independent registered public accounting firm was ratified, and the compensation of the named executive officers was approved on a non-binding, advisory basis.

The most recent analyst rating on (BROS) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Dutch Bros Inc stock, see the BROS Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Dutch Bros Inc Reports Strong Q1 2025 Financial Performance
Positive
May 7, 2025

Dutch Bros Inc. reported a strong financial performance for the first quarter of 2025, with a 29% year-over-year revenue growth and significant increases in same shop sales. The company opened 30 new shops, contributing to a total revenue of $355.2 million. The positive results are attributed to robust transaction growth and a clear strategic roadmap, positioning Dutch Bros for sustainable long-term growth. The company’s financial outlook for 2025 remains optimistic, with expectations of continued revenue growth and shop openings, despite evolving macroeconomic conditions.

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.Date of analysis: May 14, 2025