Dutch Bros' (BROS) Q1 beat could allow higher full-year 2026 guidance, but competition remains the primary overhang on the stock, which will be difficult to disprove in the Q1 print, RBC Capital Markets said Monday in a note.

Despite rising competition, RBC said it is constructive on the stock and does not expect Starbucks' (SBUX) or McDonalds' (MCD) beverage launches to have a notable impact on Dutch Bros' traffic growth.

Same-store-sales growth will be a key focus in Q1, where RBC expects underlying traffic momentum, mobile ordering, and food to drive upside versus Street's 5.7% estimate.

Unit growth is a core pillar of RBC's long-term thesis for Dutch Bros as it targets 2,029 units by 2029. The brokerage said Q1 could come in above Street consensus of 33 net adds, while RBC estimates about 40 net adds.

RBC said it expects Dutch Bros to remain a fundamental outperformer within its coverage as both category and idiosyncratic drivers should allow for upside versus consensus in Q1.

RBC maintained an outperform rating on Dutch Bros with a price target of $75.

Price: 54.54, Change: -0.08, Percent Change: -0.15