Since October 2025, Dutch Bros has been in a holding pattern, floating around $50.43.

Given the underwhelming price action, is now a good time to buy BROS? Or should investors expect a bumpy road ahead? Find out in our full research report, it’s free.

Why Are We Positive On Dutch Bros?

Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.

1. New Restaurants Opening at Breakneck Speed

A restaurant chain’s total number of dining locations influences how much it can sell and how quickly revenue can grow.

Dutch Bros operated 1,136 locations in the latest quarter. It has opened new restaurants at a rapid clip over the last two years, averaging 17.6% annual growth, much faster than the broader restaurant sector. This gives it a chance to become a large, scaled business over time.

When a chain opens new restaurants, it usually means it’s investing for growth because there’s healthy demand for its meals and there are markets where its concepts have few or no locations.

2. Surging Same-Store Sales Show Increasing Demand

Same-store sales is an industry measure of whether revenue is growing at existing restaurants, and it is driven by customer visits (often called traffic) and the average spending per customer (ticket).

Dutch Bros has been one of the most successful restaurant chains over the last two years thanks to skyrocketing demand within its existing dining locations. On average, the company has posted exceptional year-on-year same-store sales growth of 6%.

3. Projected Revenue Growth Is Remarkable

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite, though some deceleration is natural as businesses become larger.

Over the next 12 months, sell-side analysts expect Dutch Bros’s revenue to rise by 25%. While this projection is below its 37.9% annualized growth rate for the past six years, it is eye-popping and implies the market is baking in success for its menu offerings.

Final Judgment

These are just a few reasons why we think Dutch Bros is a great business, but at $50.43 per share (or 56× forward P/E), is now the right time to buy the stock? See for yourself in our comprehensive research report, it’s free.

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