Should you buy Dutch Bros Coffee stock?
CNBC’s Jim Cramer said Thursday he believes investors should wait to buy shares of Dutch Bros. Coffee, the Oregon-based chain that went public a month ago.
Why choose Dutch Bros?
Driven by the values and culture first instilled by the company's founding brothers -- Dane and Travis Boersma -- Dutch Bros today provides an extremely friendly, fast-paced environment that helps build customer loyalty.
How did Dutch Bros make money in 2020?
In 2020, Dutch Bros generated $327 million in revenue or just under $700,000 per store on average. While the company has proven its ability to generate positive cash flow in the past, some one-time expenses related to the pandemic bogged down profit margins in 2020.
Why did Dutch Bros stop selling franchise licenses?
To help maintain this culture, Executive Chairman Travis Boersma even decided in 2008 to stop selling franchise licenses to anybody who wasn't already a part of the Dutch Bros ecosystem. While this may have slowed growth over the short term, it has helped preserve the positive atmosphere that's now synonymous with the Dutch Bros name.
Is Dutch Bros stock a buy right now?
There are currently 3 hold ratings and 7 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should "buy" Dutch Bros stock.
What happened with Dutch Bros?
The company's stock is crashing in pre-market trading–down over 39%. After a stellar IPO last year that saw Dutch Bros stock surge as much as 70% shortly after debuting, the popular Oregon-based coffee chain is now seeing its stock get hammered in pre-market trading.
How high will Dutch Bros stock go?
Dutch Bros Inc (NYSE:BROS) The 9 analysts offering 12-month price forecasts for Dutch Bros Inc have a median target of 35.00, with a high estimate of 64.00 and a low estimate of 30.00. The median estimate represents a +1.74% increase from the last price of 34.40.
How much does a Dutch Bros franchise owner make?
How Much Does Dutch Bros Make in Profit? A Dutch Bros store generated about $1.5+ million in revenue based on 2018 metrics. The average profit that a franchise owner can make annually is estimated at $124,000.
San Antonio-based Red Runner Coffee opening third local spot
The newest shop at 6238 FM 78 — about 3 miles north of Sea World San Antonio — joins the Walzem Road location. A third location of the chain at 10619 Culebra Road is also being built under the lead of San Antonio-based Waterman Construction. CEO Evan Smith said he's aiming for an April opening.
Is Dutch Bros a Buy?
The need for people to get their morning fix, combined with strong branding, has made Starbucks an all-time great investment -- up more than 30,000% since its initial public offering in the early 1990s.
About Dutch Bros
Dutch Bros Inc. is an operator and franchisor of drive-thru shops which focus on serving high QUALITY, hand-crafted beverages with unparalleled SPEED and superior SERVICE. Dutch Bros Inc. is based in GRANTS PASS, Ore.
Dutch Bros (NYSE:BROS) Frequently Asked Questions
9 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Dutch Bros in the last year. There are currently 1 hold rating and 8 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "buy" Dutch Bros stock. View analyst ratings for Dutch Bros or view top-rated stocks.
Comparing Starbucks and Dutch Bros
In fiscal 2021 (September 2021 year-end), Starbucks had $29.1 billion in revenue, $4.7 billion in operating income and $4.5 billion in free cash flow (FCF). These were all records, which is appropriate for the company’s 50th anniversary.
The Bottom Line on BROS Stock
As I said in October, while a small bet on BROS stock in the low to mid $40s shouldn’t be a problem long-term, I also suggest you put aside some cash and look for an opportunity to buy it in the $30s.
Positive Catalysts
Dutch Bros reportedly caters to Generation Z. As a result, I think that the company could benefit from what I call “the Snapchat phenomenon” that has boosted Snap (NYSE: SNAP) for a long time.
Negative Catalysts
In some ways, younger Americans have been more negatively affected by the coronavirus pandemic than their younger peers.
The Bottom Line on BROS Stock
The shares are trading at a forward price-earnings ratio, based on analysts’ average 2022 earnings per share estimate, of over 100. Given Dutch Bros’ tough challenges, that’s an excessive price to pay. Consequently, I urge investors to sell the shares for now.
