Stockchase Opinions

Martin Cobb, ASIP Dutch Brothers BROS-Q DON'T BUY Sep 11, 2025

Third-largest coffee chain in the US, with just over 1k stores in 20 states. (SBUX has 17k stores, DNKN has ~9.5k.) Long runway of growth. Opening stores aggressively. Growth rate tipping down from 50% to 25%. Trades at 50x 2027 anticipated earnings for a coffee shop chain. Hmmm. Pretty near priced for perfection.

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HOLD

Around 800 stores, with ~150 expected to be added this year. Retail growth is increasing along with margins on sales. Strong competition with McDonalds etc. Continues to grow.