Dutch Bros and McDonald's Growth Potential Amid Tariff Changes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Should l Buy BROS?
Source: NASDAQ.COM
- Dutch Bros Growth Momentum: Dutch Bros has achieved a 7.7% increase in same-store sales over the past year, maintaining strong market performance despite tariff impacts from Brazilian coffee beans, indicating its robust growth potential in the restaurant sector.
- McDonald's Value Strategy: McDonald's has realized a 5.7% increase in same-store sales in the fourth quarter through the relaunch of value meals and promotional activities, with a notable 6.8% growth in the U.S., demonstrating its strong competitive position in a value-driven market.
- Expansion Plans: Dutch Bros aims to open over 2,000 locations in the U.S. by 2029, with a long-term goal of 7,000 stores, reflecting its strategic commitment to rapid expansion and expected market share growth.
- Tariff Changes in Coffee Market: Recent exemptions from Brazil's previously high coffee tariffs, which reached 40%, will help Dutch Bros better navigate market challenges in 2025 and beyond, with expectations of easing coffee bean prices further supporting its business growth.
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Analyst Views on BROS
Wall Street analysts forecast BROS stock price to rise
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 50.850
Low
70.00
Averages
78.80
High
85.00
Current: 50.850
Low
70.00
Averages
78.80
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 handcraft espresso shots for both hot and cold custom classic and signature coffee beverages. It also sells proprietary coffee-based Freeze blended beverages and cold brew. Its Private Reserve coffee is a 100% Arabica three-bean blend, roasted by the Company in Grants Pass, Oregon or Melissa, Texas facilities. The Company has two segments: Company-operated shops, and Franchising and other. The Company-operated shops segment includes retail coffee shop sales to end consumers. 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 1,101 shops, of which over 779 are operated by the Company and 322 are franchised, across 26 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.
Trump Signs New Tariff Order Impacting Restaurant Stocks
- New Tariff Policy: Following the Supreme Court's ruling that previous tariffs under the IEEPA were illegal, President Trump swiftly signed an executive order imposing new tariffs of up to 15% under the Trade Act of 1974, although uncertainty remains in the market.
- Dutch Bros Growth Momentum: Dutch Bros (BROS) has achieved same-store sales growth over the past year, including a 7.7% increase in Q4, and despite tariff pressures, the recent exemption for Brazilian coffee beans is expected to enhance its market position.
- McDonald's Scale Advantage: McDonald's (MCD) effectively mitigates tariff impacts through its large scale and sourcing strategies, reporting a 5.7% increase in same-store sales in Q4, with a notable 6.8% growth in the U.S. market.
- Marketing Strategy: McDonald's has successfully attracted customers through the relaunch of its Extra Value Meals and promotional campaigns like the Grinch Meal and Monopoly promotions, driving strong sales growth and demonstrating robust performance in the current economic climate.
See More
Dutch Bros and McDonald's Growth Potential Amid Tariff Changes
- Dutch Bros Growth Momentum: Dutch Bros has achieved a 7.7% increase in same-store sales over the past year, maintaining strong market performance despite tariff impacts from Brazilian coffee beans, indicating its robust growth potential in the restaurant sector.
- McDonald's Value Strategy: McDonald's has realized a 5.7% increase in same-store sales in the fourth quarter through the relaunch of value meals and promotional activities, with a notable 6.8% growth in the U.S., demonstrating its strong competitive position in a value-driven market.
- Expansion Plans: Dutch Bros aims to open over 2,000 locations in the U.S. by 2029, with a long-term goal of 7,000 stores, reflecting its strategic commitment to rapid expansion and expected market share growth.
- Tariff Changes in Coffee Market: Recent exemptions from Brazil's previously high coffee tariffs, which reached 40%, will help Dutch Bros better navigate market challenges in 2025 and beyond, with expectations of easing coffee bean prices further supporting its business growth.
See More
Dutch Bros Shows Strong Growth and Expansion Potential
- Sales Growth Highlight: Dutch Bros achieved a 5.6% same-store sales growth in 2025, supported by a 3.2% increase in transactions, leading to a 27.9% year-over-year revenue increase, indicating strong market demand and brand appeal.
- Ambitious Expansion Plans: The company opened 154 new coffee shops last year, bringing the total to 1,136, with plans to reach 2,029 by 2029, and increasing the market opportunity from 4,000 to 7,000 stores, reflecting confidence in its expansion strategy.
- Profitability Improvement: Net income surged 76% year-over-year to $117.3 million in 2025, with analysts forecasting a 27.4% compound annual growth in earnings per share over the next three years, demonstrating sustained profitability and investment appeal.
- Attractive Market Valuation: Dutch Bros shares are trading 45% below their record high, with significant reductions in price-to-earnings and price-to-sales ratios, providing an attractive entry point for investors, despite high market volatility, suggesting potential for substantial long-term returns.
See More
Dutch Bros Shows Significant Growth Potential
- Strong Sales Growth: Dutch Bros achieved a same-store sales increase of 5.6% in 2025, supported by a 3.2% rise in transactions, leading to an overall revenue growth of 27.9%, indicating robust market performance and long-term investment potential.
- Ambitious Expansion Plans: After opening 154 new coffee shops last year, Dutch Bros now has a total of 1,136 locations, with plans to reach 2,029 by 2029, and the market opportunity has increased from 4,000 to 7,000 shops, showcasing strong market expansion potential.
- Improving Profitability: The company reported a 76% year-over-year increase in net income to $117.3 million in 2025, with analysts forecasting a 27.4% compound annual growth rate for earnings per share over the next three years, reflecting ongoing improvements in profitability.
- Enhanced Market Appeal: Despite significant stock price volatility, Dutch Bros shares are currently trading 45% below their historical highs, and with a notable decline in price-to-earnings and price-to-sales ratios, investors are presented with an attractive entry point, positioning the company as a potential quality addition to investment portfolios if strong fundamentals continue.
See More
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Food Inflation Trends: Food inflation is expected to persist, with prices for food away from home projected to rise nearly 5%, while food at home prices are anticipated to increase by 1.7%.
Fast Food Market Growth: The global fast food and quick service restaurant market is projected to grow at a compound annual growth rate of 14.8% from 2026 to 2033, reaching over $885 billion.
Investment Opportunities: The AdvisorShares Restaurant ETF (EATZ) offers broad exposure to the fast food and quick service restaurant market, making it a potential investment opportunity for those optimistic about long-term growth in this sector.
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Dutch Bros vs. Starbucks: The Coffee Market Showdown
- Dutch Bros Expansion Plan: Dutch Bros aims to open 2,029 locations by 2029, a 78% increase from 1,136 in 2025, while expanding its total addressable market to 7,000 stores, indicating strong growth potential that is expected to significantly boost future revenues.
- Sustained Sales Growth: With 19 consecutive years of positive same-store sales growth, Dutch Bros' CEO emphasizes the company's solid fundamentals, which will lay a strong foundation for future profitability and market competitiveness.
- Starbucks' Turnaround Efforts: After six consecutive quarters of same-store sales declines, Starbucks finally reversed this trend in Q4 2025, with management focusing on renovations and an upgraded rewards program to attract consumers, showcasing the brand's resilience and adaptability in the market.
- Investor Confidence: Despite Starbucks' high stock price with a forward P/E ratio of 40.8, Wall Street remains optimistic, projecting a 67% increase in earnings per share from fiscal 2025 to 2028, which supports its long-term investment value amidst competitive pressures.
See More
Trump Signs New Tariff Order Impacting Restaurant Stocks
- New Tariff Policy: Following the Supreme Court's ruling that previous tariffs under the IEEPA were illegal, President Trump swiftly signed an executive order imposing new tariffs of up to 15% under the Trade Act of 1974, although uncertainty remains in the market.
- Dutch Bros Growth Momentum: Dutch Bros (BROS) has achieved same-store sales growth over the past year, including a 7.7% increase in Q4, and despite tariff pressures, the recent exemption for Brazilian coffee beans is expected to enhance its market position.
- McDonald's Scale Advantage: McDonald's (MCD) effectively mitigates tariff impacts through its large scale and sourcing strategies, reporting a 5.7% increase in same-store sales in Q4, with a notable 6.8% growth in the U.S. market.
- Marketing Strategy: McDonald's has successfully attracted customers through the relaunch of its Extra Value Meals and promotional campaigns like the Grinch Meal and Monopoly promotions, driving strong sales growth and demonstrating robust performance in the current economic climate.
See More
Dutch Bros and McDonald's Growth Potential Amid Tariff Changes
- Dutch Bros Growth Momentum: Dutch Bros has achieved a 7.7% increase in same-store sales over the past year, maintaining strong market performance despite tariff impacts from Brazilian coffee beans, indicating its robust growth potential in the restaurant sector.
- McDonald's Value Strategy: McDonald's has realized a 5.7% increase in same-store sales in the fourth quarter through the relaunch of value meals and promotional activities, with a notable 6.8% growth in the U.S., demonstrating its strong competitive position in a value-driven market.
- Expansion Plans: Dutch Bros aims to open over 2,000 locations in the U.S. by 2029, with a long-term goal of 7,000 stores, reflecting its strategic commitment to rapid expansion and expected market share growth.
- Tariff Changes in Coffee Market: Recent exemptions from Brazil's previously high coffee tariffs, which reached 40%, will help Dutch Bros better navigate market challenges in 2025 and beyond, with expectations of easing coffee bean prices further supporting its business growth.
See More
Dutch Bros Shows Strong Growth and Expansion Potential
- Sales Growth Highlight: Dutch Bros achieved a 5.6% same-store sales growth in 2025, supported by a 3.2% increase in transactions, leading to a 27.9% year-over-year revenue increase, indicating strong market demand and brand appeal.
- Ambitious Expansion Plans: The company opened 154 new coffee shops last year, bringing the total to 1,136, with plans to reach 2,029 by 2029, and increasing the market opportunity from 4,000 to 7,000 stores, reflecting confidence in its expansion strategy.
- Profitability Improvement: Net income surged 76% year-over-year to $117.3 million in 2025, with analysts forecasting a 27.4% compound annual growth in earnings per share over the next three years, demonstrating sustained profitability and investment appeal.
- Attractive Market Valuation: Dutch Bros shares are trading 45% below their record high, with significant reductions in price-to-earnings and price-to-sales ratios, providing an attractive entry point for investors, despite high market volatility, suggesting potential for substantial long-term returns.
See More
Dutch Bros Shows Significant Growth Potential
- Strong Sales Growth: Dutch Bros achieved a same-store sales increase of 5.6% in 2025, supported by a 3.2% rise in transactions, leading to an overall revenue growth of 27.9%, indicating robust market performance and long-term investment potential.
- Ambitious Expansion Plans: After opening 154 new coffee shops last year, Dutch Bros now has a total of 1,136 locations, with plans to reach 2,029 by 2029, and the market opportunity has increased from 4,000 to 7,000 shops, showcasing strong market expansion potential.
- Improving Profitability: The company reported a 76% year-over-year increase in net income to $117.3 million in 2025, with analysts forecasting a 27.4% compound annual growth rate for earnings per share over the next three years, reflecting ongoing improvements in profitability.
- Enhanced Market Appeal: Despite significant stock price volatility, Dutch Bros shares are currently trading 45% below their historical highs, and with a notable decline in price-to-earnings and price-to-sales ratios, investors are presented with an attractive entry point, positioning the company as a potential quality addition to investment portfolios if strong fundamentals continue.
See More
2026 Food Price Inflation Forecast: This ETF May Excel
Consumer Discretionary Sector Performance: The consumer discretionary sector has struggled in 2026, posting a 2.7% year-to-date loss, following a 6% gain last year, and ranking last among the S&P 500 sectors.
Food Inflation Trends: Food inflation is expected to persist, with prices for food away from home projected to rise nearly 5%, while food at home prices are anticipated to increase by 1.7%.
Fast Food Market Growth: The global fast food and quick service restaurant market is projected to grow at a compound annual growth rate of 14.8% from 2026 to 2033, reaching over $885 billion.
Investment Opportunities: The AdvisorShares Restaurant ETF (EATZ) offers broad exposure to the fast food and quick service restaurant market, making it a potential investment opportunity for those optimistic about long-term growth in this sector.
See More
Dutch Bros vs. Starbucks: The Coffee Market Showdown
- Dutch Bros Expansion Plan: Dutch Bros aims to open 2,029 locations by 2029, a 78% increase from 1,136 in 2025, while expanding its total addressable market to 7,000 stores, indicating strong growth potential that is expected to significantly boost future revenues.
- Sustained Sales Growth: With 19 consecutive years of positive same-store sales growth, Dutch Bros' CEO emphasizes the company's solid fundamentals, which will lay a strong foundation for future profitability and market competitiveness.
- Starbucks' Turnaround Efforts: After six consecutive quarters of same-store sales declines, Starbucks finally reversed this trend in Q4 2025, with management focusing on renovations and an upgraded rewards program to attract consumers, showcasing the brand's resilience and adaptability in the market.
- Investor Confidence: Despite Starbucks' high stock price with a forward P/E ratio of 40.8, Wall Street remains optimistic, projecting a 67% increase in earnings per share from fiscal 2025 to 2028, which supports its long-term investment value amidst competitive pressures.
See More
