Dutch Bros (NYSE:BROS) Stock Gets Downgrade from Royal Bank Of Canada

Dutch Bros (NYSE:BROS) was downgraded by research analysts at Royal Bank Of Canada from an “outperform” rating to a “sector perform” rating in a research report issued on Thursday, MarketBeat.com reports. They currently have a $46.00 price target on the stock. Royal Bank Of Canada’s price objective would suggest a potential upside of 8.75% from the stock’s current price.

A number of other analysts also recently weighed in on BROS. Raymond James Financial set a $59.00 price target on shares of Dutch Bros in a report on Friday, September 18th. Melius Research decreased their price objective on shares of Dutch Bros from $95.00 to $70.00 and set a “buy” rating on the stock in a research note on Friday, September 18th. Robert W. Baird lowered their price objective on shares of Dutch Bros from $82.00 to $60.00 and set an “outperform” rating for the company in a research report on Friday, October 2nd. Telsey Advisory Group upped their target price on Dutch Bros from $66.00 to $74.00 and gave the stock an “outperform” rating in a research note on Friday, July 31st. Finally, Morgan Stanley cut their target price on Dutch Bros from $88.00 to $71.00 and set an “overweight” rating for the company in a research note on Thursday, October 15th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $68.24.

Dutch Bros Price Performance

Shares of NYSE BROS opened at $42.30 on Thursday. The stock has a market capitalization 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 business has a fifty day moving average price of $43.57 and a two-hundred day moving average price of $54.08. Dutch Bros has a fifty-two week low of $36.51 and a fifty-two week 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.

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

Insider Buying and Selling

In related news, Director Todd Penegor bought 2,000 shares of the business’s stock in a transaction on Thursday, August 13th. The shares were purchased at an average price of $51.56 per share, for a total transaction of $103,120.00. Following the completion of the transaction, the director directly owned 7,358 shares of the company’s stock, valued at approximately $379,378.48. This represents a 37.33% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. 38.90% of the stock is currently owned by insiders.

Institutional Trading of Dutch Bros

Hedge funds and other institutional investors have recently modified their holdings of the stock. Wellington Management Group LLP lifted its stake in shares of Dutch Bros by 38.0% in the 2nd quarter. Wellington Management Group LLP now owns 3,090,882 shares of the company’s stock valued at $221,956,000 after acquiring an additional 851,075 shares during the last quarter. Danica Pension Livsforsikringsaktieselskab acquired a new stake in shares of Dutch Bros during the 1st quarter valued at $33,569,000. Hyperion Asset Management Ltd grew its position in Dutch Bros by 104.4% during the 3rd quarter. Hyperion Asset Management Ltd now owns 1,222,532 shares of the company’s stock worth $47,141,000 after acquiring an additional 624,488 shares during the last quarter. Bank of America Corp DE grew its position in Dutch Bros by 33.4% during the 1st quarter. Bank of America Corp DE now owns 1,814,815 shares of the company’s stock worth $91,939,000 after acquiring an additional 454,036 shares during the last quarter. Finally, Bank of New York Mellon Corp grew its position in Dutch Bros by 58.1% during the 1st quarter. Bank of New York Mellon Corp now owns 1,044,545 shares of the company’s stock worth $52,917,000 after acquiring an additional 384,011 shares during the last quarter. Institutional investors own 85.54% of the company’s stock.

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

About Dutch Bros

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.