Dutch Bros Inc. (BROS) Rating Raised to Buy as Goldman Sees Undervalued Growth Potential

Dutch Bros Inc. (NYSE:BROS) is one of the most promising restaurant stocks to buy according to hedge funds.

TheFly reported on March 2 that Goldman Sachs raised its rating on BROS from Neutral to Buy and kept its price target at $75. The firm said it sees stronger underlying business performance than the market currently recognizes and believes the recent decline in the stock price creates a compelling opportunity to invest in a company with one of the most attractive growth profiles in the U.S. restaurant sector.

Earlier on February 12, Dutch Bros Inc. (NYSE:BROS) announced its fourth quarter and full year report. The company expanded throughout 17 states in the fourth quarter by opening 55 new stores, including 52 company-operated sites. Compared to $342.8 million in the same quarter of 2024, total revenue climbed 29.4% year over year to $443.6 million. While transactions increased by 5.4%, system-wide same-shop sales jumped by 7.7%.

The report also shows that the Company-operated same-shop sales climbed 9.7%, with transactions up 7.6%. While adjusted EBITDA increased 48.8% to $72.6 million, net income increased to $29.2 million from $6.4 million in the previous year. Revenue climbed to $1.64 billion from $1.28 billion, and net income to $117.3 million from $66.5 million for the entire year.

The company anticipates at least 181 new store openings, adjusted EBITDA of $355 million to $365 million, same-shop sales growth of 3% to 5%, revenue of $2.0 billion to $2.03 billion, and capital expenditures of $270 million to $290 million in 2026.

Dutch Bros Inc. (NYSE:BROS) is a U.S. drive‑through coffee chain serving coffee, energy drinks, and other beverages through company‑operated and franchised locations nationwide.

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