Dutch Bros: A Brew with a Bit of a Kick

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Now, listen closely, because this is about coffee, and coffee is serious business. Especially when it comes with a company called Dutch Bros (BROS +3.52%). They’re popping up all over the place – 24 states, if you’re counting – and if you haven’t tasted their concoctions, you’re missing a bit of a treat. But is this a treat for your wallet, too? Let’s have a look, shall we?

1. The Growth Spurt

Dutch Bros started as a little shack, a humble purveyor of caffeine in Oregon. Now, it’s a full-blown, sprawling coffee empire. They’re opening shops faster than you can say “double espresso,” and they’re managing to do it despite all the gloomy grumbles about the economy. Have a peek at these numbers:

Metric Q4 24 Q1 25 Q2 25 Q3 25 Q4 25
Revenue growth YOY 35% 29% 28% 25% 29%

2. Not Just New Shops, You See

Of course, opening more shops helps. It’s like adding more buckets to catch the rain. But Dutch Bros isn’t just relying on shiny new storefronts. They’re actually getting people to come back for more. Sales at existing shops are up a healthy 7.7% – that’s a lot of extra coffee beans! And a good chunk of that isn’t just because they’re slyly raising prices (though they are, a little). People genuinely seem to like the stuff.

3. Turning a Profit (At Last!)

For a while, Dutch Bros was spending money faster than a greedy goblin. But they’ve finally turned the corner and are actually making a profit. In the last quarter, they raked in $29.2 million – a considerable pile of pennies. Though, mind you, the head bean-counter is fretting about coffee costs and a new building strategy. Still, it’s a start.

4. A Runway as Long as a Giraffe’s Neck

This is where it gets interesting. Dutch Bros isn’t planning to stop anytime soon. They want to double the number of shops by 2029 – that’s a lot of frothy beverages. And eventually, they dream of 7,000 stores. It’s a rather ambitious plan, but if they pull it off, it could be quite a spectacle.

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5. A Bit of a Dip (But Don’t Panic)

Now, here’s the curious part. Despite all the good news, the stock price has taken a tumble. It’s down 35% over the past year. The market, it seems, is a fickle beast. The company warned that things might slow down a bit in 2026, and that rising coffee costs will pinch their profits. The stock is a bit pricey at 84 times earnings, which means there’s not much wiggle room.

But for those who play the long game, this dip could be an opportunity. A chance to snatch up a few shares before the price climbs again. Just remember, investing is like brewing a good cup of coffee – it requires patience, a dash of risk, and a whole lot of hope.

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2026-02-18 18:52