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On Monday, Guggenheim analysts increased their price target for Dutch Bros Inc. (NYSE: NYSE:BROS) shares, raising it to $72 from the previous $54, while reaffirming a Buy rating on the stock. The coffee chain’s stock, currently trading at $62.52, has demonstrated remarkable momentum with a 95% surge over the past six months, according to InvestingPro data. This adjustment follows the coffee chain’s first Investor Day held in Phoenix, where Dutch Bros presented an updated long-term total addressable market (TAM) of 7,000 locations. Additionally, the company set a store count goal for 2029, suggesting that mid-teens unit growth is expected to remain stable over the next five years. The company’s ambitious expansion plans are supported by strong fundamentals, with InvestingPro data showing impressive revenue growth of 32.6% in the last twelve months.
The company also reported a quarter-to-date same-store sales (SSS) increase of 4.6%, which was slightly above the consensus but may have fallen short of some buy-side expectations. Despite this, Dutch Bros stands out as one of the few restaurant brands currently matching or exceeding sell-side consensus sales estimates for the first quarter.
Guggenheim’s decision to raise the price target comes with an upward revision of their 2026 EBITDA forecast for Dutch Bros, from $361 million to $380 million, positioning it 6% above the consensus. The firm applies a 35x EV/EBITDA multiple to the 2026 projection, citing strong comparable sales visibility for 2025 and 2026 as the basis for their valuation.
The positive outlook from Guggenheim reflects confidence in Dutch Bros’ growth trajectory and its ability to expand its store footprint significantly in the coming years. The company’s performance thus far indicates a promising direction, as it continues to revise sales estimates and set ambitious targets for the near future. With current EBITDA of $217 million and trading at an EV/EBITDA multiple of 37.5x, investors seeking deeper insights into Dutch Bros’ valuation and growth prospects can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.
In other recent news, Dutch Bros Inc. has been the subject of several analyst reviews and strategic developments. TD Cowen reiterated its Buy rating with a price target of $89, citing the company’s strong medium-term sales drivers, including mobile ordering and advertising. UBS also maintained a Buy rating with a $90 target, highlighting Dutch Bros’ strategic plans for sales growth and store expansion, as well as its revised total addressable market estimate of over 7,000 units. Meanwhile, Wells Fargo (NYSE:WFC) initiated coverage with an Overweight rating and an $80 price target, noting Dutch Bros as a significant growth story in the consumer sector with expectations of over 30% EBITDA growth. Morgan Stanley (NYSE:MS) also started coverage with an Overweight rating and an $82 target, emphasizing the company’s strong customer loyalty and robust unit growth targets. Additionally, Dutch Bros announced the appointment of Kory Marchisotto as an independent director on its Board of Directors, bringing her extensive marketing and brand development experience to the company. Marchisotto’s expertise in engaging younger demographics aligns with Dutch Bros’ customer base, and her appointment is seen as a strategic move to enhance the company’s growth. These developments reflect Dutch Bros’ ongoing efforts to strengthen its market position and expand its operations.
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