Dutch Bros Inc. Class A Common Stock (BROS)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Dutch Bros as a student of Graham and Buffett: I want a durable business, conservative finances, and a price that leaves room for error. The company sells coffee through drive-thru shops, and its top line has grown quickly. Revenue was $965.8 million in fiscal year 2023, the year ended 2023-12-31, $1.3 billion in fiscal year 2024, the year ended 2024-12-31, and $1.6 billion in fiscal year 2025, the year ended 2025-12-31, per filed results. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $550.9 million and net income $37.4 million, versus revenue of $415.8 million and net income of $25.6 million in fiscal Q2 2025, the quarter ended 2025-06-30. That is real momentum. But profits remain thin: in fiscal year 2025, the year ended 2025-12-31, net income was $79.8 million, and the net margin in fiscal Q2 2026, the quarter ended 2026-06-30, was 6.79%. FairStock shows ROE of 14.56% but ROCE of only 3.79%, debt-to-equity of 1.24, and an Altman Z-Score of 1.61, so the balance sheet and capital returns deserve caution. The brand may have a niche with loyal customers, but coffee is fiercely competitive, and I do not see a wide moat from these numbers alone. Valuation is the rub. At the 2026-10-13 close of $37.98, FairStock calculates a P/E of 52.75, P/B of 6.56, EV/EBITDA of 18.91, FCF yield of 1.9%, and a Graham Number of $9.68. The margin of safety is negative 292.36%, and the FairStock Score is 35/100. The Piotroski F-Score of 8/9 is a positive sign, and PEG of 1.15 suggests growth is recognized. Still, the price already assumes much of the turnaround succeeds. I would want more evidence that growth converts into durable owner earnings before calling this a bargain.

In plain English: Dutch Bros runs drive-thru coffee shops in the United States. The company is growing sales quickly and has become profitable, but its earnings and cash flow are still small compared with its $5.1 billion market value. At $37.98, the stock looks expensive against those current numbers, even after falling from a 52-week high of $74.02.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer