Dutch Bros (BROS) is expected to post "solid" Q4 results, with catalysts expected to support momentum through 2026, UBS Securities said in a report Friday. The results are due Feb. 12.

The report said investor expectations include Q4 same-store sales growth of about 6%. For 2026, guidance is expected to call for same-store sales growth of roughly 3% to 5%.

The note also said recent share pressure could reflect concerns around investor positioning, elevated expectations into upcoming 2026 guidance, and increased beverage competition.

"We believe competitor concerns are overblown and expect BROS should continue to outperform despite industry headwinds," the report said.

The company's food launch is viewed as a key catalyst in 2026 and 2027, driving morning traffic, positioning Dutch Bros as a "one-stop-shop" breakfast destination, it said.

"BROS remains our top pick," UBS said, expecting traffic momentum, store growth and EBITDA expansion to drive share upside. UBS kept its buy rating with a price target of $85.

Price: 56.12, Change: +3.73, Percent Change: +7.12