Dutch Bros (BROS) is likely to sustain its ongoing sale momentum through 2026, driven by strategic projects and a steady development pipeline despite energy headwinds, UBS said in a Friday research note.

The concerns around stiff competition and geopolitical risks are overblown and the pressure on the stock could be lifted if sales momentum continues through new product launches from competitors, analysts wrote.

The company's brand positioning, food launch catalyst, and EBITDA upside potential should continue supporting market share gains and same-store-sales over the coming years, according to the note.

Sales momentum also will be driven by menu innovation, merchandise drops, mobile orders, loyalty programs, and paid advertising, according to UBS.

UBS reiterated its buy rating on the stock with a price target of $85 per share.

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