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BROS Stock Jumps 20% in a Month: Smart Buy, Hold or Sell the Spike?
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Key Takeaways
BROS stock jumped 19.6% in a month, outperforming industry peers and major market benchmarks.
Dutch Bros opened its 1,000th shop and plans to reach 2,029 locations by 2029 amid strong brand momentum.
Order Ahead and Dutch Rewards drove higher engagement, with loyalty users making 72% of transactions.
Dutch Bros Inc. (BROS - Free Report) stock has jumped 19.6% in a month, outpacing the industry and the S&P 500’s rallies of 1.9% and 4.6%, respectively. The company is capitalizing on its strong brand momentum, rapid expansion and increasing customer engagement through its digital and loyalty initiatives.
Closing at $72.20 in the last trading session, the stock stands 17% below its 52-week high of $86.88 but 168% above its 52-week low of $26.96. In the past month, shares of other industry players like Starbucks Corporation (SBUX - Free Report) , Yum China Holdings, Inc. (YUMC - Free Report) and Texas Roadhouse, Inc. (TXRH - Free Report) have gained 2.8%, 0.4% and 14.1%, respectively.
Price Performance
Image Source: Zacks Investment Research
Adding to the positive technical picture, Dutch Bros' stock trades above its 50-day simple moving average of $63.34, a key indicator of sustained upward momentum. This outperformance highlights growing investor confidence in the company’s resilient business model and steady growth trajectory.
50-Day Moving Average
Image Source: Zacks Investment Research
Expansion Efforts Aid BROS
Dutch Bros recently celebrated a milestone by opening its 1,000th shop in Orlando, FL — a symbolic moment that took place 33 years and 3,000 miles from its humble beginnings in Grants Pass, OR. This achievement underscores the company’s steady national expansion and growing brand recognition.
Looking ahead, BROS has laid out an ambitious growth strategy, planning to expand its footprint to 2,029 shops by 2029. This long-term goal reflects confidence in the brand's appeal and a belief that it can continue capturing market share across the United States.
To support this expansion, Dutch Bros is focused on driving sustainable transaction growth. The company plans to overcome structural barriers in the market, attract customers and increase visit frequency among its existing fan base. Additionally, it is seeing encouraging productivity trends from its newest locations, a positive sign that its growth formula is working.
Dutch Bros’ Order Ahead Initiative
BROS is making meaningful progress with its "Order Ahead" initiative, which is designed to enhance speed, convenience and customer connection, especially during the busy morning hours. In the first quarter, Order Ahead accounted for about 11% of all transactions, up three percentage points from the prior quarter.
The feature has seen even stronger adoption in new markets, wherein its share of transactions is nearly double the system average. This early success supports Dutch Bros' strategy to ease structural barriers, improve throughput and attract time-sensitive morning customers without sacrificing the personalized experience that defines its brand.
Additionally, Order Ahead is helping optimize underused channels like walk-up windows and is part of a broader effort to streamline operations by reducing bottlenecks and boosting overall shop productivity.
Dutch Rewards Program Drives BROS
Increased investment in digital advertising has significantly boosted brand awareness, especially in new and mature markets. Meanwhile, the Dutch Rewards program has seen exceptional growth, with most transactions coming from loyalty members. Enhanced segmentation efforts are improving personalized engagement, reinforcing Dutch Bros' competitive edge.
Dutch Rewards continues to be a powerful driver of customer engagement for Dutch Bros, accounting for approximately 72% of systemwide transactions in first-quarter 2025, a five-point increase from the same period last year. This growing adoption highlights the program’s effectiveness in building customer loyalty and delivering a personalized experience.
Dutch Bros’ Earnings Estimates Dip
Over the past 30 days, BROS' 2025 earnings estimates have inched down to 61 cents from 62 cents. Despite this slight revision, the company has been on track for robust growth, with revenues projected to climb 23.5% year over year and earnings expected to rise 24.5%. Other industry players like Starbucks, Yum China and Texas Roadhouse’s earnings in 2025 are likely to witness a year-over-year decline of 23.6%, and growth of 5.8% and 5.4%, respectively.
Image Source: Zacks Investment Research
BROS Trades at Premium Valuation
Dutch Bros is trading at a premium to the industry, with a forward 12-month price-to-earnings of 104.34X, which is well above the industry average of 26.07X. Meanwhile, Starbucks, Yum China and Texas Roadhouse are trading at P/E ratios of 29.32X, 16.82X and 27.08X, respectively.
Rising Costs to Hurt Dutch Bros’ Margin
BROS expects some margin pressure in 2025 due to tariffs and rising costs but believes that the overall impact will be manageable. Less than 10% of its cost of goods sold is tied to international sourcing, primarily coffee from Brazil, Colombia and El Salvador — countries currently subject to a 10% import tariff.
With coffee prices largely locked in for the rest of the year, the company feels confident it can absorb these additional costs within its existing financial guidance. Overall, Dutch Bros anticipates 110 basis points of cost of goods sold margin pressure for the full year, which includes tariff impacts.
End Notes
Dutch Bros has demonstrated strong momentum through rapid expansion, growing customer loyalty and successful digital initiatives like Order Ahead and Dutch Rewards. These strengths position the company well for long-term growth.
However, despite solid revenue and earnings growth prospects, the stock trades at a premium valuation, making it less attractive for new buyers at current levels. Rising input costs and slight earnings estimate revisions suggest some near-term pressure.
For existing investors, the long-term story remains compelling, supported by a strong brand and execution strategy. However, given the elevated valuation and margin concerns, it may be wise for new investors to wait for a more favorable entry point. BROS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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BROS Stock Jumps 20% in a Month: Smart Buy, Hold or Sell the Spike?
Key Takeaways
Dutch Bros Inc. (BROS - Free Report) stock has jumped 19.6% in a month, outpacing the industry and the S&P 500’s rallies of 1.9% and 4.6%, respectively. The company is capitalizing on its strong brand momentum, rapid expansion and increasing customer engagement through its digital and loyalty initiatives.
Closing at $72.20 in the last trading session, the stock stands 17% below its 52-week high of $86.88 but 168% above its 52-week low of $26.96. In the past month, shares of other industry players like Starbucks Corporation (SBUX - Free Report) , Yum China Holdings, Inc. (YUMC - Free Report) and Texas Roadhouse, Inc. (TXRH - Free Report) have gained 2.8%, 0.4% and 14.1%, respectively.
Price Performance
Image Source: Zacks Investment Research
Adding to the positive technical picture, Dutch Bros' stock trades above its 50-day simple moving average of $63.34, a key indicator of sustained upward momentum. This outperformance highlights growing investor confidence in the company’s resilient business model and steady growth trajectory.
50-Day Moving Average
Image Source: Zacks Investment Research
Expansion Efforts Aid BROS
Dutch Bros recently celebrated a milestone by opening its 1,000th shop in Orlando, FL — a symbolic moment that took place 33 years and 3,000 miles from its humble beginnings in Grants Pass, OR. This achievement underscores the company’s steady national expansion and growing brand recognition.
Looking ahead, BROS has laid out an ambitious growth strategy, planning to expand its footprint to 2,029 shops by 2029. This long-term goal reflects confidence in the brand's appeal and a belief that it can continue capturing market share across the United States.
To support this expansion, Dutch Bros is focused on driving sustainable transaction growth. The company plans to overcome structural barriers in the market, attract customers and increase visit frequency among its existing fan base. Additionally, it is seeing encouraging productivity trends from its newest locations, a positive sign that its growth formula is working.
Dutch Bros’ Order Ahead Initiative
BROS is making meaningful progress with its "Order Ahead" initiative, which is designed to enhance speed, convenience and customer connection, especially during the busy morning hours. In the first quarter, Order Ahead accounted for about 11% of all transactions, up three percentage points from the prior quarter.
The feature has seen even stronger adoption in new markets, wherein its share of transactions is nearly double the system average. This early success supports Dutch Bros' strategy to ease structural barriers, improve throughput and attract time-sensitive morning customers without sacrificing the personalized experience that defines its brand.
Additionally, Order Ahead is helping optimize underused channels like walk-up windows and is part of a broader effort to streamline operations by reducing bottlenecks and boosting overall shop productivity.
Dutch Rewards Program Drives BROS
Increased investment in digital advertising has significantly boosted brand awareness, especially in new and mature markets. Meanwhile, the Dutch Rewards program has seen exceptional growth, with most transactions coming from loyalty members. Enhanced segmentation efforts are improving personalized engagement, reinforcing Dutch Bros' competitive edge.
Dutch Rewards continues to be a powerful driver of customer engagement for Dutch Bros, accounting for approximately 72% of systemwide transactions in first-quarter 2025, a five-point increase from the same period last year. This growing adoption highlights the program’s effectiveness in building customer loyalty and delivering a personalized experience.
Dutch Bros’ Earnings Estimates Dip
Over the past 30 days, BROS' 2025 earnings estimates have inched down to 61 cents from 62 cents. Despite this slight revision, the company has been on track for robust growth, with revenues projected to climb 23.5% year over year and earnings expected to rise 24.5%. Other industry players like Starbucks, Yum China and Texas Roadhouse’s earnings in 2025 are likely to witness a year-over-year decline of 23.6%, and growth of 5.8% and 5.4%, respectively.
Image Source: Zacks Investment Research
BROS Trades at Premium Valuation
Dutch Bros is trading at a premium to the industry, with a forward 12-month price-to-earnings of 104.34X, which is well above the industry average of 26.07X. Meanwhile, Starbucks, Yum China and Texas Roadhouse are trading at P/E ratios of 29.32X, 16.82X and 27.08X, respectively.
Rising Costs to Hurt Dutch Bros’ Margin
BROS expects some margin pressure in 2025 due to tariffs and rising costs but believes that the overall impact will be manageable. Less than 10% of its cost of goods sold is tied to international sourcing, primarily coffee from Brazil, Colombia and El Salvador — countries currently subject to a 10% import tariff.
With coffee prices largely locked in for the rest of the year, the company feels confident it can absorb these additional costs within its existing financial guidance. Overall, Dutch Bros anticipates 110 basis points of cost of goods sold margin pressure for the full year, which includes tariff impacts.
End Notes
Dutch Bros has demonstrated strong momentum through rapid expansion, growing customer loyalty and successful digital initiatives like Order Ahead and Dutch Rewards. These strengths position the company well for long-term growth.
However, despite solid revenue and earnings growth prospects, the stock trades at a premium valuation, making it less attractive for new buyers at current levels. Rising input costs and slight earnings estimate revisions suggest some near-term pressure.
For existing investors, the long-term story remains compelling, supported by a strong brand and execution strategy. However, given the elevated valuation and margin concerns, it may be wise for new investors to wait for a more favorable entry point. BROS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.