Dutch Bros Stock Is Soaring After Reporting 'Stand-Out Quarter,' Analysts Say Guidance Is Conservative

Dutch Bros Inc BROS shares are trading higher Thursday after the company reported better-than-expected financial results for the fourth quarter. Several analysts raised price targets following the company’s quarterly results.

What To Know: Dutch Bros beat analyst estimates on the top and bottom lines, reporting fourth-quarter revenue of $342.8 million versus estimates of $317.8 million, and adjusted earnings of 7 cents per share versus estimates of 2 cents per share.

Total revenue was up 35% year-over-year in the fourth quarter. Dutch Bros guided for full-year 2025 revenue of $1.56 billion to $1.58 billion and same shop sales growth of 2% to 4%.

Wedbush analyst Nick Setyan maintained Dutch Bros with an Outperform rating and raised the price target from $65 to $100 following the print.

The Wedbush analyst believes guidance is conservative and expects same shop sales growth to be driven by a lower year of sales transfer, menu innovation, increased paid digital media, continued growth in loyalty, targeted reward promotions and mobile ordering growth, among other things.

“Given the higher top line trajectory, management’s customary conservatism, and our conservative approach to Q1 and 2025 estimates, we view upside as probable as the year progresses,” Setyan said in the note.

Wedbush raised its adjusted EBITDA estimates to $274.9 million and increased its 2025 earnings per share estimate from 65 cents to 71 cents. The firm also introduced 2026 earnings per share estimates of 92 cents.

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Piper Sandler analyst Brian Mullan maintained a Neutral rating and raised the price target from $51 to $70, calling the fourth quarter a “stand-out quarter” for Dutch Bros.

Mullan echoed Wedbush’s sentiment around conservative guidance, citing management commentary on continued strength in January on the conference call.

“All other components of the bull case are intact as well, with New Store Productivity showing further progress, with Food almost certainly coming next year, and with the growth in EBITDA $'s combined with a relatively contained capex guide suggesting that becoming free cash flow positive might be on the table for next year,” the analyst said.

Here’s a look at other analyst changes on Thursday:

• JPMorgan analyst John Ivankoe maintained an Overweight and raised the price target from $58 to $80.

• Stifel analyst Chris O’Cull maintained a Buy and raised the price target from $62 to $74

• UBS analyst Dennis Geiger maintained a Buy and raised the price target from $67 to $90.

• Baird analyst David Tarantino maintained an Outperform and raised the price target from $70 to $95.

• TD Securities analyst Andrew Charles maintained a Buy and raised the price target from $65 to $89.

BROS Price Action: Dutch Bros shares were up 27.6% at $82.50 at the time of publication Thursday, according to Benzinga Pro.

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