William Blair analyst Sharon Zackfia has reiterated their bullish stance on BROS stock, giving a Buy rating yesterday.
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Sharon Zackfia’s rating is based on Dutch Bros Inc’s impressive third-quarter performance, which surpassed expectations in several key areas. The company reported a 25% increase in revenue, exceeding the consensus estimate of 22%, driven by a 5.7% systemwide comparable sales gain. This growth was fueled by a notable rise in traffic and strong new unit productivity, alongside a 22% increase in adjusted EBITDA, which also outpaced the consensus forecast of 17%.
The company’s success can be attributed to its ability to attract younger consumers, robust seasonal beverage offerings, and effective advertising strategies. Additionally, Dutch Bros has seen positive trends in its Rewards program and mobile ordering, which have contributed to its strong performance. The company’s initiatives to enhance throughput and optimize labor deployment have further enabled it to meet peak demand efficiently, supporting its overall growth momentum. These factors collectively underpin Zackfia’s Buy rating for Dutch Bros Inc.
According to TipRanks, Zackfia is a 4-star analyst with an average return of 5.3% and a 43.88% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Birkenstock Holding plc, Royal Caribbean, and Starbucks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $70.00 price target.