Dutch Bros' (BROS) risk/reward skews favorable headed into the Q2 print as the company should post a same-store-sales beat and raise on sustained underlying momentum, RBC Capital Markets said in a Monday research report.

For Q2, the brokerage said it expects a same-store-sales beat on swing factors like limited time offers and merchandise launches, which boosted velocity and sales. The company will report Q2 results on Aug. 5.

A Q2 beat on SSS could imply potential margin upside on fixed cost and labor leverage, the brokerage said, adding that food and the company's recently launched Myst platform are likely driving incremental growth and traffic, respectively.

Despite stiff competition, RBC does not see cold beverage innovation from rivals inhibiting the company's growth trajectory, according to the note.

The brokerage said it had an outperform rating on the stock and a price target of $75 per share.

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