TD Cowen analyst Andrew Charles has maintained their bullish stance on BROS stock, giving a Buy rating on May 5.
Andrew Charles has given his Buy rating due to a combination of factors that highlight Dutch Bros Inc’s positive trajectory in the restaurant sector. The company is experiencing strong execution in driving near-term traffic, supported by advancements in mobile ordering, successful advertising, beverage innovation, and a robust loyalty program. Additionally, Dutch Bros is testing an expanded food menu that could be rolled out systemwide by 2026, which is expected to further enhance customer engagement and sales.
Moreover, Dutch Bros reported impressive financial results, with a notable beat in adjusted EBITDA driven by better-than-expected shop contribution and general and administrative cost management. The company’s same-store sales and shop contribution margins exceeded expectations, showcasing effective cost management and operational efficiency. Despite slight adjustments to future sales estimates due to industry challenges, the overall outlook remains positive, justifying the maintained price target of $78.
Charles covers the Consumer Cyclical sector, focusing on stocks such as Dutch Bros Inc, Wendy’s, and Yum! Brands. According to TipRanks, Charles has an average return of 9.6% and a 55.73% success rate on recommended stocks.
In another report released on May 5, UBS also maintained a Buy rating on the stock with a $80.00 price target.