Dutch Bros Inc (BROS) AI Stock Analysis

• Market Cap: $11.10B
• Dividend Yield: N/A
• Average Volume (3M): 3.06M
• Price to Earnings (P/E): 143.3
• Beta (1Y): 1.99
• Revenue Growth: 29.80%
• EPS Growth: 85.84%
• Country: US
• Employees: 18,000
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Restaurants
• EPS (TTM): 0.26
• Shares Outstanding: 126,960,280
• 10 Day Avg. Volume: 4,798,634
• 30 Day Avg. Volume: 3,063,458
• 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: 0.86
• Enterprise Value/Revenue: 7.05
• Enterprise Value/Gross Profit: 26.78
• Enterprise Value/Ebitda: 45.75
• 1Y Price Target: $82.73
• Price Target Upside: 22.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 73 Outperform
• Price Target: $78.00 ▲(15.59% Upside)

Dutch Bros Inc's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust growth and strategic expansion. However, high valuation metrics and technical indicators suggest caution, as the stock may be overvalued and potentially overbought.

Positive Factors

Financial Performance

Margins improved as dairy cost tailwinds materialized, and franchising profits benefited from pricing ahead.

Growth Initiatives

BROS's initiatives are working, the brand is strong, and it's gaining share in a tough backdrop.

Negative Factors

Competitive Pressure

Dutch Bros’ robust second quarter should dispel the narrative that a stabilizing competitor in Starbucks would eat into Dutch’s momentum.

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 Business Overview & Revenue Model

Company Description

Dutch 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 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 shows strong revenue growth and improving profitability margins. The balance sheet reflects a stable equity position, though leverage with a Debt-to-Equity Ratio of 1.7 remains a concern. Cash flow management is effective, supporting ongoing investments.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.28B	965.78M	739.01M	497.88M	327.41M
Gross Profit	358.27M	340.13M	251.30M	180.92M	153.30M	115.94M
EBITDA	209.76M	204.91M	118.38M	46.09M	-87.25M	26.17M
Net Income	43.55M	35.26M	1.72M	-4.75M	-12.68M	5.72M
Balance Sheet
Total Assets	2.77B	2.50B	1.76B	1.19B	554.95M	259.66M
Cash, Cash Equivalents and Short-Term Investments	316.44M	293.35M	133.54M	20.18M	18.51M	31.64M
Total Debt	1.02B	942.91M	676.58M	625.42M	151.93M	95.12M
Total Liabilities	1.97B	1.74B	1.09B	934.38M	344.76M	183.67M
Stockholders Equity	599.06M	537.37M	364.35M	129.12M	93.50M	75.99M
Cash Flow
Free Cash Flow	32.30M	24.69M	-88.54M	-128.00M	-38.07M	12.97M
Operating Cash Flow	242.12M	246.43M	139.91M	59.88M	80.38M	53.55M
Investing Cash Flow	-200.14M	-212.07M	-227.28M	-192.57M	-121.09M	-45.57M
Financing Cash Flow	11.74M	125.45M	200.73M	134.36M	27.58M	8.08M

Dutch Bros Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.48
• 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 67.48 is above the 20-day moving average (MA) of 61.59, above the 50-day MA of 66.00, and above the 200-day MA of 60.74, indicating a bullish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 75.31 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
CAVA	76 Outperform	$9.52B	68.65	21.73%	―	32.11%	378.62%
BROS	73 Outperform	$11.10B	143.30	9.99%	―	29.80%	85.84%
SBUX	66 Neutral	$104.71B	39.84	-47.07%	2.62%	0.60%	-35.19%
SHAK	66 Neutral	$4.53B	228.58	4.16%	―	13.13%	-25.05%
WEN	63 Neutral	$1.94B	10.53	99.35%	8.64%	1.31%	-1.46%
Sector *	61 Neutral	$16.99B	10.66	-7.51%	3.25%	1.53%	-15.49%
SG	56 Neutral	$1.13B	―	-21.95%	―	5.74%	-1.95%

Dutch Bros Inc Corporate Events

Dutch Bros Inc Reports Strong Q2 2025 Financials

Dutch Bros Inc. reported a strong financial performance for the second quarter of 2025, with a 28% increase in revenue year-over-year, driven by a 6.1% growth in systemwide same shop sales and a 7.8% increase in company-operated same shop sales. The company opened 31 new shops and raised its full-year guidance for total revenues, same shop sales growth, and adjusted EBITDA, reflecting confidence in its business momentum and strategic execution.

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 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.