BROS Should I Buy
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Dutch Bros Inc. (BROS) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive growth trajectory, and favorable analyst ratings outweigh the short-term technical weakness. The post-market price surge of 12.55% and the company's expansion plans further support this decision.
The technical indicators show bearish trends with a negatively expanding MACD histogram (-0.436), RSI at 27.579 (neutral zone), and bearish moving averages (SMA_200 > SMA_20 > SMA_5). Key support and resistance levels are Pivot: 54.007, R1: 56.819, S1: 51.195, R2: 58.556, S2: 49.458. The stock is currently below its pivot level, indicating short-term weakness.
Strong Q4 2025 financial performance with 29.41% YoY revenue growth, 491.64% YoY net income growth, and 466.67% YoY EPS growth.
Plans to open 181 new shops in 2026, indicating aggressive expansion.
Positive analyst sentiment with multiple Overweight/Buy ratings and price targets ranging from $76 to $
Post-market price surge of 12.55%, reflecting positive market sentiment.
Bearish technical indicators suggest short-term weakness.
Gross margin dropped by 15.59% YoY in Q4 2025, which could indicate cost pressures.
Broader market weakness with S&P 500 down 1.54%.
Dutch Bros reported Q4 2025 revenue of $443.61 million, a 29.41% YoY increase. Net income surged 491.64% YoY to $21.37 million, and EPS increased by 466.67% YoY to $0.17. However, gross margin declined by 15.59% YoY to 24.15%. The company also reported total 2025 revenue of $1.64 billion, up 28% YoY, and plans to open 181 new shops in 2026.
Analysts are bullish on Dutch Bros, with multiple Overweight/Buy ratings and price targets ranging from $76 to $82. Citi initiated coverage with a Buy rating and an $82 price target, citing strong growth potential and favorable market positioning. RBC Capital and Barclays also highlighted the company's compelling growth story and expansion opportunities.
