Dutch Bros Inc (BROS) AI Stock Analysis

• Market Cap: $8.79B
• Dividend Yield: N/A
• Average Volume (3M): 4.44M
• Price to Earnings (P/E): 107.4
• Beta (1Y): 2.10
• 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: 126,960,280
• 10 Day Avg. Volume: 4,695,266
• 30 Day Avg. Volume: 4,440,431
• 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: 0.87
• Enterprise Value/Revenue: 4.97
• Enterprise Value/Gross Profit: 18.89
• Enterprise Value/Ebitda: 31.96
• 1Y Price Target: $73.45
• Price Target Upside: 37.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $57.00 ▲(6.68% Upside)

Dutch Bros Inc's overall stock score is driven by strong financial performance and positive earnings call highlights, including robust revenue growth and expansion plans. However, the high P/E ratio and bearish technical indicators weigh down the score. The company faces challenges with cash flow management and increased costs, which need to be addressed to improve its market position.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful business strategies, supporting long-term expansion and profitability.

Expansion Plans

Expanding into new states enhances market presence and growth potential, positioning the company for sustained revenue increases and competitive advantage.

Digital and Loyalty Program Success

The success of digital and loyalty programs boosts customer engagement and retention, driving repeat business and increasing transaction values over time.

Negative Factors

Increased Coffee Costs

Rising coffee costs can pressure profit margins, potentially affecting pricing strategies and profitability if not managed effectively.

Higher Preopening Expenses

Increased preopening expenses could strain financial resources, impacting cash flow and the pace of future expansion efforts.

Regulatory Labor Cost Impact

Regulatory-driven labor cost increases may reduce operational flexibility and profitability, necessitating strategic adjustments to maintain margins.

Dutch Bros Inc Business Overview & Revenue Model

Company Description

Dutch Bros Inc (BROS) is a rapidly growing drive-thru coffee chain based in the United States, known for its specialty coffee drinks, energy drinks, and other beverages. Founded in 1992 in Grants Pass, Oregon, the company has expanded its footprint significantly, focusing on a unique customer experience characterized by friendly service and a vibrant brand culture. Dutch Bros operates primarily in the coffee sector, offering a diverse menu that includes espresso-based drinks, smoothies, and teas, catering to a wide range of customer preferences.

How the Company Makes Money

Dutch 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 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	840.58M	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: Negative
• Last Price: 53.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 53.43 is below the 20-day moving average (MA) of 55.72, below the 50-day MA of 57.28, and below the 200-day MA of 63.69, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 42.45 is Neutral, neither overbought nor oversold. The STOCH value of 22.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BROS.

Dutch Bros Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCD	65 Neutral	$213.40B	25.56	―	2.28%	1.26%	2.87%
BROS	64 Neutral	$8.79B	107.35	10.53%	―	28.93%	69.59%
CMG	64 Neutral	$40.45B	26.96	44.96%	―	7.31%	5.26%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
YUM	60 Neutral	$41.39B	29.05	―	1.88%	11.60%	-4.33%
PZZA	55 Neutral	$1.35B	36.23	―	3.62%	-0.64%	-60.71%
SBUX	54 Neutral	$97.27B	52.54	―	2.85%	2.81%	―

Dutch Bros Inc Corporate Events

Dutch Bros Inc. Reports Strong Q3 Growth Amid Challenges

The recent earnings call for Dutch Bros Inc. Class A highlighted a robust business performance, characterized by significant revenue growth, successful expansion efforts, and enhanced customer engagement through digital initiatives and innovative product launches. Despite these positive developments, the company is navigating challenges related to increased coffee costs and regulatory impacts on labor expenses.

Dutch Bros Inc. Reports Strong Q3 2025 Growth

Dutch Bros Inc., a prominent player in the U.S. quick service beverage industry, is known for its rapid growth and unique drive-thru coffee shop experience, offering a wide range of handcrafted beverages.

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.

The most recent analyst rating on (BROS) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Dutch Bros Inc stock, see the BROS Stock Forecast page.