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Investing.com - RBC Capital has raised its price target on Dutch Bros Inc. (NYSE:BROS) to $85.00 from $83.00 while maintaining an Outperform rating on the stock. The coffee chain, currently trading at $68.16 with a market capitalization of $10.36 billion, appears overvalued according to InvestingPro analysis.
The price target increase follows what RBC Capital described as an "impressive" second quarter for the coffee chain, which beat Street expectations on all operating metrics with strong underlying growth continuing into July. The company’s robust performance is reflected in its 29.8% year-over-year revenue growth, reaching $1.45 billion in the last twelve months.
RBC Capital noted that mobile order adoption continues to increase, driving morning transactions, while new shop productivity is improving—a factor the firm views as critical as Dutch Bros transitions from a regional chain to a national player.
The company’s food test is expanding and driving incremental transactions and check growth above management’s expectations, according to RBC Capital’s analysis.
RBC Capital also highlighted that Dutch Bros is in the early stages of improving throughput and marketing efforts, which continue to show "greenshoots of progress."
In other recent news, Dutch Bros Inc. reported impressive second-quarter earnings for 2025, exceeding market expectations. The company achieved an earnings per share of $0.26, surpassing the forecasted $0.18, which represents a 44.44% surprise. Revenue reached $416 million, outpacing the anticipated $403.14 million. This performance was driven by a 28% revenue growth to $415.8 million, with system same shop sales increasing by 6.1% and company-operated same shop sales rising by 7.8%. Stifel reiterated its Buy rating on Dutch Bros, maintaining a price target of $82.00, highlighting the strong transaction growth as a key factor. TD Cowen also reiterated its Buy rating, setting a price target of $86.00, and identified Dutch Bros as its "top pick" within its coverage universe. The firm noted that the company’s second-quarter results addressed investor concerns and led to raised guidance. These developments underscore the positive outlook from analysts and strong financial performance for the company.
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