TD Cowen analyst Andrew Charles has maintained their bullish stance on BROS stock, giving a Buy rating on March 26.
Andrew Charles’s rating is based on several promising factors that Dutch Bros Inc has demonstrated. The company has laid out clear, medium-term sales drivers that suggest a positive sales trajectory, which is notable given the current challenges in the restaurant industry. Key elements contributing to this outlook include advancements in mobile technology, advertising, and service speed, along with the potential growth in the coffee shop sector, particularly with plans to introduce food offerings by 2026.
Another significant factor is the expansion of the company’s total addressable market (TAM) in the U.S., which has increased to over 7,000 stores from the previous 4,000. This expansion includes new states, particularly in the Northeast, and reflects improved store economics. The company’s new store openings are showing strong performance, with annualized average unit volumes (AUVs) of $2.0 million, surpassing previous targets. Additionally, the company has reiterated its long-term growth algorithm, projecting 20% revenue growth and over 20% adjusted EBITDA growth, further supporting the Buy rating.
In another report released on March 26, Wells Fargo also initiated coverage with a Buy rating on the stock with a $80.00 price target.