Should you buy Dutch Bros stock? (April 2024)

Published first at https://www.3minutebreakdowns.com Dutch Bros stock analysis. Ticker: $BROS Coffee chain Dutch Bros has had a good year but the stock hasn’t kept up. Shares are roughly flat over the last 12 months giving the company a market value of 5.8 billion dollars. With 134 million of cash and 98 million of debt the enterprise value is roughly the same. In 2023, Dutch Bros opened 159 new shops. Revenues grew 31% to 966 million dollars and adjusted EBITDA grew 76% to 161 million. Net income was 10 million and free cash flow was negative but that’s because Dutch Bros is still investing for growth. The company has a long stated goal to reach 4,000 shops over the next 10-15 years. Unlike many restaurant chains, the majority of Dutch Bros are company operated. Since 2017, the company no longer accepts new franchisees, although existing operators are allowed to open new stores. And although Dutch Bros is billed as a coffee company, roughly 80% of its drinks are served cold with significant sales coming in the afternoon. Dutch Bros looks like an intriguing growth story growing revenue 31% this year and 48% the year before. But, nearly all of that growth came from new store openings. As noted in the company’s investor presentation, same store sales growth was only 1.5% in 2023 and 0.6% in 2022. And that growth is mostly coming from price increases because same-store traffic numbers have fallen in both years. #investing #stocks #stockstowatch #3mb