Dutch Bros Inc.BROS
NYSE • Consumer Cyclical
$49.32
P/E
77.06
PEG
16.05
FCF Yield
—
Rev Growth YoY
+30.8% YoY
Gross Margin
22.8%
Health Score
5/10
D/E Ratio
1.60
Confidence
LOW
Business Snapshot
Dutch Bros is a drive-through coffee chain operating in the US, generating revenue primarily from coffee and beverage sales at company-operated stores. The company competes in the highly fragmented quick-service restaurant industry, where it has carved out a niche as a challenger brand with a loyal customer following and rapid store expansion. With trailing twelve-month revenue of $1.75B, it is a fast-growing mid-size player, though market capitalisation data is not included in this analysis. A defining characteristic is its focus on drive-through only locations, which drove high sales volumes during the pandemic and continues to support unit-level economics.
Financial Health
Gross margin stands at 22.8%, down from 24.1% in the prior year, indicating cost pressures or mix shifts that are squeezing profitability. Net margin data is unreliable due to a flagged data source error and cannot be relied upon for assessment...
Risk Assessment
- VALUATION — P/E of 77.06x is more than 3x the sector average of 24x, leaving no room for disappointment in future growth.
- EARNINGS QUALITY — Earnings growth of 4.8% trails revenue growth of 30.8% by a wide margin, signalling margin compression and potential quality issues.
- REVENUE DECELERATION — QoQ revenue growth of 4.7% is sharply below the YoY rate of 30.8%, indicating a rapid deceleration in sequential momentum.
- DEBT — Debt/equity of 1.6x is elevated and may constrain the balance sheet if growth slows or interest costs rise.
- 52-WEEK POSITION — At $49.32, the stock is 37% below the 52-week high of $77.88 and below the midpoint of the range ($61.23), reflecting persistent weakness.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....