UBS Reiterates Buy Rating on Dutch Bros Inc. (BROS): 'One of Strongest Growth Stories in Restaurants'

UBS analyst Dennis Geiger reiterated a Buy rating and $85.00 price target on Dutch Bros Inc. (NYSE: BROS).

The analyst commented, "We recently hosted meetings with BROS' mgmt team in LA & SF and came away with confidence in the sustainability of industry leading sales and earnings growth. Meetings positively addressed key investor debates post 2Q earnings, including: strong brand positioning despite category competition; why the sizable company-owned shop outperformance is favorable & should continue; and sustainability of strong new store performance & growth. Other key points of focus included: 1) sales lifts from the food platform & beverage innovation; 2) store development potential & the recent acquisition; and 3) other key sales drivers including paid media & the loyalty program. We continue to believe BROS remains one of strongest growth stories in restaurants, with our ’26 estimated revenue growth of 29% and EBITDA growth of 28% likely supportive of valuation upside from the current ~18.5x ’27 EBITDA. Despite heightened beverage segment competition, we believe BROS' unique brand positioning should drive sustained sales outperformance, with traction on strategic plans to support further market share gains and solid sss over the coming years."

For an analyst ratings summary and ratings history on Dutch Bros Inc. click here. For more ratings news on Dutch Bros Inc. click here.

Shares of Dutch Bros Inc. closed at $50.27 yesterday.

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