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The Bull Case For Dutch Bros (BROS) Could Change Following New Creamers And Breakfast Pilot Rollout

Simply Wall St · 5d ago
  • Dutch Bros recently expanded beyond its drive-thru shops by launching two retail coffee creamers and continued adding new U.S. locations, including a north Reno site.
  • At the same time, the chain has been piloting breakfast items and facing mixed feedback on product quality, highlighting both growth opportunities and execution challenges.
  • Next, we’ll examine how Dutch Bros’ breakfast rollout across its system could influence the company’s existing investment narrative and growth assumptions.

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Dutch Bros Investment Narrative Recap

To own Dutch Bros, you need to believe the brand can convert rapid shop expansion and new product lines into sustainably higher revenue and profits without letting costs or quality issues get away from it. The latest creamer launch, new locations, and breakfast tests appear directionally consistent with this growth story, while recent feedback on product quality underlines that near term, execution risk around menu innovation and store rollouts remains more important than the retail products themselves.

Of the latest developments, the breakfast expansion into roughly 160 stores by late 2025 and systemwide in 2026 looks most relevant, because it directly addresses a key risk that limited food options might cap average ticket size and the morning daypart opportunity. If breakfast can lift traffic and spending without materially worsening labor or complexity at the window, it could strengthen the core growth catalyst of unit expansion and same shop sales, rather than just adding another experiment on the margins.

Yet while Dutch Bros continues to open new shops at a rapid clip, investors should be aware that...

Read the full narrative on Dutch Bros (it's free!)

Dutch Bros' narrative projects $2.6 billion revenue and $197.4 million earnings by 2028. This requires 21.8% yearly revenue growth and about a $140 million earnings increase from $57.2 million today.

Uncover how Dutch Bros' forecasts yield a $76.44 fair value, a 23% upside to its current price.

Exploring Other Perspectives

BROS 1-Year Stock Price Chart
BROS 1-Year Stock Price Chart

Nine members of the Simply Wall St Community currently value Dutch Bros between US$46.14 and US$85.00, highlighting how far apart individual views on upside or downside can be. Against that backdrop, the most recent breakfast rollout and product quality concerns raise important questions about how much growth the current footprint can support before over expansion or margin pressure start to weigh on overall performance.

Explore 9 other fair value estimates on Dutch Bros - why the stock might be worth as much as 37% more than the current price!

Build Your Own Dutch Bros Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.