Dutch Bros Likely to Extend Sales, Earnings Momentum Through 2026, UBS Securities Says

MT Newswires Live
2025/10/28

Dutch Bros (BROS) is poised to report "solid" Q3 results and is likely to extend its sales and earnings momentum for the remainder of 2025 and through 2026, UBS Securities said in a note Tuesday.

The investment firm estimates Q3 same-store sales growth of 4% and expects the company to reiterate its 2025 outlook. Underlying momentum is expected to continue in Q4 and early 2026, with UBS estimating a 3.9% same-store sales growth for 2026, according to the note.

UBS said the extended momentum is backed by a "compelling catalyst path" that includes menu innovation, paid marketing, throughput unlocks, mobile order penetration, and a food menu launch.

"Dutch Bros should continue to outperform despite industry headwinds with strength across consumer cohorts," the investment firm said, noting that investor concerns related to increased beverage competition from larger brands are "overblown".

Dutch Bros is set to report its Q3 results on Nov. 5.

UBS reiterated Dutch Bros as its "top pick," maintaining a buy rating and $85 price target on the stock.

Price: 59.42, Change: -0.45, Percent Change: -0.75

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