Dutch Bros (NYSE:BROS) Stock Rating Cut to Sector Perform at Royal Bank Of Canada

Dutch Bros (NYSE:BROS) was downgraded by stock analysts at Royal Bank Of Canada from an “outperform” rating to a “sector perform” rating in a report released on Thursday, Marketbeat Ratings reports. They presently have a $46.00 price target on the stock. Royal Bank Of Canada’s target price would suggest a potential upside of 8.75% from the stock’s previous close.

Several other analysts have also recently weighed in on BROS. DA Davidson reduced their price objective on shares of Dutch Bros from $85.00 to $60.00 and set a “buy” rating on the stock in a research note on Monday, September 28th. Jefferies Financial Group decreased their price objective on Dutch Bros from $75.00 to $60.00 and set an “overweight” rating for the company in a report on Tuesday, September 29th. Morgan Stanley lowered their target price on Dutch Bros from $88.00 to $71.00 and set an “overweight” rating for the company in a research report on Thursday, October 15th. Oppenheimer reaffirmed a “positive” rating on shares of Dutch Bros in a report on Wednesday, September 30th. Finally, Citigroup reduced their price target on Dutch Bros from $86.00 to $69.00 and set a “buy” rating on the stock in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, Dutch Bros currently has an average rating of “Moderate Buy” and an average target price of $68.24.

Dutch Bros Stock Down 3.5%

NYSE:BROS opened at $42.30 on Thursday. Dutch Bros has a one year low of $36.51 and a one year high of $74.02. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.35 and a quick ratio of 1.19. The company has a market cap of $7.39 billion, a PE ratio of 62.60, a P/E/G ratio of 1.55 and a beta of 2.31. The firm’s 50 day simple moving average is $43.57 and its 200 day simple moving average is $54.08.

Dutch Bros (NYSE:BROS) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.04. The firm had revenue of $550.85 million during the quarter, compared to analysts’ expectations of $525.38 million. Dutch Bros had a net margin of 4.91% and a return on equity of 10.01%. The company’s revenue was up 32.5% on a year-over-year basis. During the same period in the prior year, the company posted $0.26 EPS. On average, research analysts anticipate that Dutch Bros will post 0.88 earnings per share for the current year.

Insider Buying and Selling

In other Dutch Bros news, Director Todd Penegor purchased 2,000 shares of the firm’s stock in a transaction on Thursday, August 13th. The stock was purchased at an average cost of $51.56 per share, for a total transaction of $103,120.00. Following the acquisition, the director owned 7,358 shares in the company, valued at approximately $379,378.48. The trade was a 37.33% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 38.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in BROS. Crossmark Global Holdings Inc. lifted its stake in shares of Dutch Bros by 90.2% in the 3rd quarter. Crossmark Global Holdings Inc. now owns 6,199 shares of the company’s stock valued at $239,000 after purchasing an additional 2,940 shares during the period. Diversify Advisory Services LLC grew its stake in Dutch Bros by 13.8% during the third quarter. Diversify Advisory Services LLC now owns 35,849 shares of the company’s stock worth $1,473,000 after purchasing an additional 4,337 shares during the period. Hyperion Asset Management Ltd grew its stake in Dutch Bros by 104.4% during the third quarter. Hyperion Asset Management Ltd now owns 1,222,532 shares of the company’s stock worth $47,141,000 after purchasing an additional 624,488 shares during the period. Delta Capital Management LLC acquired a new stake in Dutch Bros during the third quarter worth approximately $240,000. Finally, Vontobel Holding Ltd. increased its holdings in Dutch Bros by 111.0% in the third quarter. Vontobel Holding Ltd. now owns 8,174 shares of the company’s stock worth $315,000 after purchasing an additional 4,300 shares in the last quarter. 85.54% of the stock is owned by institutional investors and hedge funds.

Dutch Bros News Roundup

Here are the key news stories impacting Dutch Bros this week:

• Positive Sentiment: Analysts remain broadly constructive despite trimming their targets. Citigroup lowered its target to $69 while retaining a “buy” rating, and TD Cowen cut its target to $55 while also maintaining a “buy” rating. Wells Fargo reduced its target to $55 but kept an “overweight” rating—targets that still imply substantial upside from recent levels. Tickerreport analyst price-target report
• Positive Sentiment: Dutch Bros continues to pursue rapid drive-thru expansion, with a new location approved near Queen’s Harbour Yacht & Country Club and additional sites being considered in Tacoma and Hoover. The company’s growth strategy is supported by its brand culture, beverage customization, speed, and customer service. Dutch Bros location approval article
• Positive Sentiment: Recent coverage highlights 13 consecutive quarters of same-store sales growth. The company plans to open 185 stores this year, while its latest reported quarter showed 32.5% year-over-year revenue growth and earnings above expectations.
• Neutral Sentiment: Dutch Bros launched its first collectible plush toys, with profits donated to charity. The initiative may support customer engagement and brand loyalty, but it is unlikely to materially affect near-term financial results. Dutch Bros collectible plush article
• Negative Sentiment: The repeated analyst target cuts signal more cautious expectations, even though the firms retained bullish ratings. Investors may interpret the revisions as evidence that the stock’s premium valuation requires stronger execution.
• Negative Sentiment: With Dutch Bros trading at roughly 58–63 times earnings, valuation remains demanding. The market is particularly focused on whether the company can meet its store-opening target and sustain same-store sales momentum ahead of upcoming earnings. Dutch Bros same-store sales and expansion article

Dutch Bros Company Profile

Dutch Bros Inc is a drive-thru beverage company that operates and franchises coffee shops across the United States. The company is known for its made-to-order drinks, fast service and community-focused brand.

Its menu includes hot, iced and blended coffee beverages, along with specialty drinks such as energy drinks, teas, lemonades, smoothies and other noncoffee refreshments. Dutch Bros also offers packaged products and branded merchandise through select locations and digital channels.

Dutch Bros was founded in 1992 in Grants Pass, Oregon, by brothers Dane and Travis Boersma.