Dutch Bros Aims to Expand to 2,029 Stores by 2029
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15h ago
0mins
Source: Fool
- Massive Expansion Potential: Dutch Bros plans to double its store count from 1,000 to 2,029 by 2029, which is expected to significantly boost revenue and provide substantial returns for investors.
- Customer Beverage Love: Same-store sales increased by 5.7% in Q3, with company-operated stores seeing a 7.4% rise, indicating strong customer demand for its innovative beverages and enhancing the viability of its long-term business model.
- Positive Cash Flow Generation: Dutch Bros has become profitable and is now generating positive free cash flow, with capital expenditures remaining flat as management optimizes its expansion strategy, positioning the company for sustained growth.
- Wide Market Coverage: As of Q3, Dutch Bros operates in 24 states, successfully replicating its business model to appeal to diverse customer segments, further solidifying its market position.
Analyst Views on BROS
Wall Street analysts forecast BROS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BROS is 73.45 USD with a low forecast of 63.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 63.060
Low
63.00
Averages
73.45
High
85.00
Current: 63.060
Low
63.00
Averages
73.45
High
85.00
About BROS
Dutch Bros Inc. is an operator and franchiser of drive-thru shops, which is focused on serving hand-crafted beverages. The Company sells a range of customizable hot, iced and blended beverages. Coffee-based beverages include its espresso-based custom drinks, cold brew and its proprietary Freeze blended beverages. Its Private Reserve coffee is a 100% Arabica three-bean blend, roasted in its Grants Pass facility. Its proprietary Blue Rebel energy drink is customizable with flavors and modifiers. It also offers a variety of teas, lemonades, sodas and smoothies. The Company has two segments: Company-operated shops, and Franchising and other. The Company-operated shops segment includes coffee shop sales to customers. The Franchising and other segment includes bean and product sales to franchise partners and includes the initial franchise fees, royalties, and marketing fees. It has approximately 982 shops, of which 670 are operated by the Company and 312 are franchised, across 18 states.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
