Dutch Bros BROS shares are trading higher Wednesday afternoon. TD Cowen analysts maintained a Buy rating and $46 price target on the stock following the firm’s Future of the Consumer Conference.
What To Know: Cowen highlighted the company's mobile ordering execution, predicting mid-single-digit same-store sales growth in 2025. 2024 growth is expected to be driven by advertising and menu innovation. Additionally, Dutch Bros' shift to a “built-to-suit” store development strategy is expected to lead to free cash flow profitability by 2026, the analyst said.
What Else: TD Cowen sees potential in Dutch Bros’ food offerings, noting its current 3% mix compared to Starbucks’ 22% mix. They believe Dutch Bros’ management has a thoughtful operational plan, including “escape lanes” and walk-up windows to optimize mobile ordering.
BROS Price Action: Dutch Bros shares were up by 7.8% at $38.44 at the time of writing, according to Benzinga Pro.
See Also: What’s Going On With AMD Stock On Wednesday?
Photo via Wikimedia Commons.
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