Coffee maker Dutch Bros (NYSE:BROS) is spiking today like it had one triple espresso too many after some truly impressive guidance. Big goals mark Dutch Bros’ 2023, and the market is responding accordingly.
While presenting at a conference in Orlando, Florida, Dutch Bros opened up its roadmap for future operations. Despite soaring inflation and a macroeconomic environment that should be punishing for coffee shops, Dutch Bros plans to open 150 new locations in 2023 alone. Such a move will be vital in pushing the coffee shop chain to its ultimate target of 1,000 locations by the middle of 2025. That’s just for starters; Dutch Bros looks to make $1 billion in revenue starting this year. That puts it on track for the consensus figures, which are looking for $976 million.
Clearly, Dutch Bros has something to prove. As the fourth largest coffee chain in the U.S., it will have substantial competition from the likes of Starbucks (NASDAQ:SBUX) and Dunkin (NASDAQ:DNKN). Analysts were expecting a 2% decline in existing stores, but the drop was much lower than projected at 0.6%. That was indicative of sales moving from currently-operating shops to new shops.
Overall, Wall Street expects big things out of Dutch Bros stock with a Moderate Buy consensus rating. Further, with an average price target of $37.88, the stock currently enjoys 18.86% upside potential.
