Dutch Bros Inc. (BROS) AI Stock Analysis
BROS AI stock analysis summary
AI ResearchDutch Bros Inc. operates and franchises drive-thru beverage shops across the United States. Revenue reached $1.88B over the trailing twelve months, supported by 32.5% quarterly revenue growth as of June 30, 2026. The stock trades at a trailing P/E of 57.2x while carrying $1.21B in total debt.
- Market cap
- $7.22B
- Revenue (TTM)
- $1.88B
- P/E
- 57.2x fwd 32.6x
- 1Y return
- -24.5% S&P 500 16.8%
- Avg. target
- $70.72 71.8% vs last close
Bull case
- Quarterly revenue increased 32.5% year-over-year for the period ended June 30, 2026, supported by a 5-year revenue CAGR of 38.0%.
- Annual net income shifted from -$12.7M in FY2021 to $79.8M in FY2025, lifting trailing twelve month EPS to $0.72.
- Consensus forecasts for next fiscal year project revenue of $2.66B and EPS growth of 35.7% to $1.33.
Bear case
- The stock trades at a trailing P/E of 57.2x, well above the median of its US-listed Consumer Cyclical peers of 18.0x.
- The balance sheet holds total debt of $1.21B against $268.6M in cash, leading to a debt-to-equity ratio of 1.51.
- Short interest is elevated, with short percent of float at 50.5%.
What Dutch Bros does
Dutch Bros Inc. specializes in the operation and franchising of drive-thru coffee shops. The company is renowned for an extensive menu of Dutch Bros hot and cold espresso-based beverages, alongside cold brew coffee offerings. It also features Blue Rebel energy drinks, tea, lemonade, smoothies, and other beverages. Founded in 1992 and headquartered in Grants Pass, Oregon, Dutch Bros had 572 drive-thru coffee locations across 12 states as of May 11, 2022. The company expands through company-operated shops and franchising, while engaging customers through both traditional drive-thru service and digital platforms.
Growth and profitability
Revenue grew at a 5-year CAGR of 38.0% between FY2020 and FY2025, rising from $497.9M in FY2021 to $1.64B in FY2025. Over the same timeframe, operating margin improved from -22.3% to 9.8%, and annual net income turned from -$12.7M to $79.8M. Free cash flow recovered from -$128.0M in FY2022 to $54.4M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 32.5% year-over-year, and quarterly earnings grew 37.3%. Trailing twelve month revenue stood at $1.88B with an operating margin of 12.9% and a profit margin of 4.9%.
Balance sheet and cash flow
As of June 30, 2026, Dutch Bros held $268.6M in cash and short-term investments compared to $1.21B in total debt, resulting in net debt of $938.7M. Shareholders' equity was $797.7M and total assets were $3.38B, resulting in a debt-to-equity ratio of 1.51 and a current ratio of 1.35. In FY2025, operating cash flow reached $295.5M, while capital expenditures totaled $241.1M. The company's share count increased 193.8% over five years.
Valuation and performance
Dutch Bros shares closed at $41.16 on October 16, 2026, giving the company a market capitalization of $7.22B and an enterprise value of $6.24B. The stock trades at a trailing P/E of 57.2x, a forward P/E of 32.6x, and an EV/EBITDA of 19.5x. These multiples compare to the median of its US-listed Consumer Cyclical peers of 18.0x trailing P/E, 14.1x forward P/E, and 11.1x EV/EBITDA. Over the past year, BROS generated a return of -24.5%, trailing the S&P 500 return of 16.8%.
What analysts expect
Analyst coverage consists of 21 Strong Buy, 4 Buy, 0 Hold, and 1 Sell ratings. The mean price target is $70.72, which is 71.8% above the last close of $41.16. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $2.13B and EPS of $0.98, representing 28.9% earnings growth. Dutch Bros beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 4, 2026.
Key risks and what to watch
- Shares of BROS have dropped 32.8% year-to-date and trade 24.3% below their 200-day moving average.
- A beta of 2.31 reflects substantial price volatility relative to the wider market.
- Shareholder dilution has been significant, with the 5-year share count change reaching 193.8%.
- Capital expenditures of $241.1M in FY2025 consumed the vast majority of the $295.5M generated in operating cash flow.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this BROS AI stock analysis
This page is an AI-written research summary of Dutch Bros Inc. (BROS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: BROS income statement, BROS balance sheet, BROS key metrics, BROS analyst forecast, BROS chart. See the BROS stock overview for the latest quote and news.
BROS AI stock analysis FAQ
What was Dutch Bros' revenue growth in the latest quarter?
For the quarter ended June 30, 2026, Dutch Bros reported year-over-year quarterly revenue growth of 32.5%.
Does Dutch Bros pay a dividend?
Dutch Bros does not pay a dividend.
What is the average analyst price target for BROS?
The mean analyst price target is $70.72, which is 71.8% higher than the October 16, 2026 closing price of $41.16.
How much debt does Dutch Bros have?
As of June 30, 2026, Dutch Bros had $1.21B in total debt and $268.6M in cash and short-term investments, leaving net debt at $938.7M.
When is the next earnings report for Dutch Bros?
The company's next earnings report is scheduled for November 4, 2026.