Dutch Bros Inc (BROS) AI Stock Analysis

• Market Cap: $12.02B
• Dividend Yield: N/A
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 189.7
• Beta (1Y): 1.92
• Revenue Growth: 30.42%
• EPS Growth: 108.41%
• Country: US
• Employees: 18,000
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Restaurants
• EPS (TTM): 0.14
• Shares Outstanding: 126,924,126
• 10 Day Avg. Volume: 2,611,145
• 30 Day Avg. Volume: 3,194,880
• PEG Ratio: 12.38
• Price to Book (P/B): 13.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 418.68
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 32.36
• Enterprise Value/Ebitda: 16.17
• 1Y Price Target: $77.86
• Price Target Upside: 6.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $79.00 ▲(8.10%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

Customer Engagement

Dutch Rewards continues to be a key sales driver, reflecting segmentation efforts with more efficient targeting and delivery of personalized offers.

Financial Performance

The company's EBITDA and margins have surpassed expectations, driven by lower costs of goods sold, showcasing efficient cost management.

Technology and Innovation

Mobile ordering is driving increased utilization of Dutch’s walk-up windows, alleviating capacity constraints at the drive-thru and benefiting newer market sales.

Negative Factors

Cost Challenges

Elevated coffee prices, tariffs, and store leadership investments are slight headwinds to margins beginning in 2Q.

Market Conditions

A softer Q2 comp guide could be a sticking point, with management bracing for softer demand.

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 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 Financial Statement Overview

Summary

Dutch Bros Inc. has demonstrated strong financial performance with a solid revenue growth rate of 32.7% and improved profit margins. The balance sheet shows moderate leverage but improving equity returns. Strong cash flow management is evident, though there's a moderate reliance on debt and relatively low net margins.

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
942.91M	676.58M	625.42M	151.93M	95.12M
	Net Debt
649.55M	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: Positive
• Last Price: 73.08
• 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 73.08 is above the 20-day moving average (MA) of 70.26, above the 50-day MA of 63.77, and above the 200-day MA of 53.59, indicating a bullish trend. The MACD of 2.35 indicates Negative momentum. The RSI at 61.56 is Neutral, neither overbought nor oversold. The STOCH value of 64.32 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
BROS	75 Outperform	$12.02B	189.72	8.57%	―	30.42%	108.41%
SHAK	73 Outperform	$5.51B	449.67	2.70%	―	14.07%	-47.47%
CAVA	71 Outperform	$9.14B	65.92	21.73%	―	32.11%	378.62%
SBUX	67 Neutral	$101.87B	32.58	-47.07%	2.68%	-0.50%	-24.28%
WEN	66 Neutral	$2.24B	12.47	90.40%	8.55%	2.18%	-5.15%
Sector *	62 Neutral	$6.88B	11.32	2.90%	3.87%	2.70%	-24.57%
SG	61 Neutral	$1.65B	―	-19.79%	―	11.10%	18.05%

Dutch Bros Inc Corporate Events

Dutch Bros Inc Amends Credit Facility Agreement

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.

Dutch Bros Announces Departure of President of Operations

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.

Dutch Bros Inc Appoints New Principal Accounting Officer

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.

Dutch Bros Inc Reports Strong Q1 2025 Financial Performance

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.