, an analyst from Mizuho Securities, has initiated a new Buy rating on Dutch Bros Inc (BROS).
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Mizuho Securities has given its Buy rating due to a combination of factors that highlight Dutch Bros Inc’s potential for significant growth. The firm believes that the company’s expected revenue and EBITDA growth rates, which are projected to be in the high-teens to 20% range annually, are not fully reflected in its current valuation. Mizuho anticipates that Dutch Bros will exceed expectations in same-store sales (SSS) growth, revenue, and EBITDA through 2026, driven by innovations such as mobile ordering, successful menu items like the ‘Dutch H2O’ drink, and increased marketing efforts.
Furthermore, the planned rollout of food offerings in 2026 is expected to contribute to additional SSS growth, enhancing the company’s long-term prospects. Mizuho also notes Dutch Bros’ industry-leading unit-level EBITDA margin, which supports the feasibility of its expansion plans to reach 2,029 units by 2029. The company’s strategic shift towards a more cost-effective build-to-suit model is likely to improve cash-on-cash returns, potentially exceeding 50%. These factors, combined with a projected EBITDA growth of 31% in 2026, justify the premium valuation and the Buy rating.
In another report released today, RBC Capital also maintained a Buy rating on the stock with a $85.00 price target.