Dutch Bros stock rating reiterated at Outperform by RBC Capital

Investing.com - RBC Capital has reiterated its Outperform rating and $85.00 price target on Dutch Bros Inc. (NYSE:BROS) following a virtual fireside chat with the company’s leadership. The target represents significant upside from the current trading price of $56.51, with analyst targets ranging from $73 to $95.

The firm’s analyst Logan Reich maintained the positive outlook after discussions with Dutch Bros CEO Christine Barone and CFO Josh Guenser, focusing on the coffee chain’s macroeconomic resilience, food rollout plans, competitive positioning, pricing strategy, marketing initiatives, and potential new store formats. According to InvestingPro data, the company’s strong financial health is reflected in its 29.8% revenue growth and healthy current ratio of 1.64.

RBC Capital expressed "higher confidence in the durability of underlying SSS growth" following the meeting, referring to same-store sales, a key retail performance metric that compares sales of stores open for at least one year.

The analyst also noted gaining "a better understanding of the beverage industry’s competitive dynamics & the company’s growth potential" through the virtual session with Dutch Bros executives.

RBC continues to view Dutch Bros as "one of the most compelling idiosyncratic stories" in its coverage universe, highlighting what it sees as a "long runway for both SSS & unit growth" for the coffee chain.

In other recent news, Dutch Bros Inc. reported a robust second-quarter performance, with revenue increasing by 28% to $415.8 million. The company saw a 6.1% rise in system same shop sales and a 7.8% increase in company-operated same shop sales, driven primarily by transaction growth. Following these results, Stifel reiterated its Buy rating and maintained a price target of $82.00 for the coffee chain. RBC Capital also raised its price target from $83.00 to $85.00, citing an "impressive" second quarter that exceeded expectations on all operating metrics.

UBS raised its price target for Dutch Bros to $85.00 from $80.00, maintaining a Buy rating due to the company’s strong growth outlook in the high-growth coffee category. TD Cowen reiterated Dutch Bros as a top pick with an $86.00 price target, despite competition concerns from McDonald’s new beverage offerings. Additionally, Dutch Bros has expanded its food test to locations in Kentucky, Alabama, and Tennessee, according to market checks by Stifel. These developments highlight ongoing confidence from analysts in Dutch Bros’ market position and growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.