Dutch Bros: The Opportunity Is Getting More Interesting

IWA Research 3.59K Followers Follow Summary Dutch Bros remains a Buy, with valuation now more compelling amid ongoing aggressive expansion and robust long-term tailwinds. BROS raised 2026 guidance: revenue to $2.10–$2.13B, Adj. EBITDA to $385–$390M, and CAPEX to $350–$370M, still targeting 2,029 shops by 2029. Near-term macro and competitive pressures may slow comparable sales and margin expansion, but innovation and menu expansion support long-term growth. Intrinsic value is estimated above current levels, indicating a significant margin of safety while the company's growth potential remains impressive. hapabapa/iStock Editorial via Getty Images Introduction Back when I last covered Dutch Bros ( BROS ), I reiterated its Buy rating, arguing how the valuation implied a good margin of safety while the company's significant expansion continued, with a 30.7% YoY revenue growth This article was written by IWA Research 3.59K Followers Follow I've been researching companies in-depth for over a decade, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in BROS, MCD over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.