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Markets have been volatile over the past few months, with stocks swinging between gains and losses. While some shares have rebounded, others remain below their prior highs. One growth stock still down about 30% from its peak is Dutch Bros (BROS), a coffee shop operator that has faced pressure from tariff and consumer spending concerns, though its sales momentum and long-term outlook have remained intact.
A key trend in recent years has been consumers treating themselves with beverages. Dutch Bros has expanded beyond traditional coffee offerings with a broad lineup that includes protein coffee, “dirty sodas,” energy drinks, smoothies, shakes, and other sweet options. The company’s indulgent drink mix appears to be resonating with consumers, particularly younger demographics, supported by a loyal customer base.
Management attributes same-store sales growth to menu innovation, brand-building efforts, and the introduction of mobile order ahead. The company also expects hot food items to support store-level sales in the year ahead, noting a 4% lift in test shops that offer hot food and that three-quarters of its stores can be configured to carry these items.
Dutch Bros’ growth outlook is tied to its geographic expansion. The company has been methodically adding new locations as it moves eastward from its West Coast roots in Oregon. Its stores are typically small, generally without indoor seating and with two drive-thru lanes, which the company says supports strong unit economics and a fast payback period.
Importantly, Dutch Bros says it can fully fund expansion through cash flow generation, supporting a strong balance sheet. At the end of 2025, it had 1,136 locations across 25 states. The company’s plan calls for 2,029 locations by the end of 2029, with an eventual target of supporting around 7,000 locations in the U.S.
With growth expected from both gradual same-store sales improvement and continued yearly expansion, Dutch Bros is positioned as a longer-duration growth opportunity. The stock trades at a 1-year forward price-to-sales (P/S) multiple of less than Starbucks, cited as 2.7x versus 3x. The article frames this as making Dutch Bros both a growth stock and a relative value opportunity.
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