Dutch Bros' (BROS) consumer packaged goods have been appearing on shelves since the beginning of January, and RBC Capital Markets expects this rollout to scale through 2026, the brokerage said in a Thursday note.

RBC estimates CPG earnings before interest, taxes, depreciation, and amortization contribution to be in the mid-to-high single-digit percentage of the 2026 Street estimate of $366.6 million in an upside scenario.

The total addressable market for US at-home coffee is $35.1 billion, while RBC estimates the serviceable available market at approximately $13.5 billion, which will grow as the company expands geographically, the brokerage said.

RBC said Dutch Bros continues to underperform within their coverage, which is partially due to higher competition and softening third party data. While FY2026 guidance could be conservative at the start of the year, RBC believes risk/reward seems more favorable as investor expectations heading into earnings are adequately low.

While there are potential competitive risks, the firm believes food and CPG are strong incremental growth drivers which could support upside.

RBC maintained an outperform rating on Dutch Bros with an $80 price target.

Shares of the company rose more than 7% in recent Friday trading.

Price: 56.14, Change: +3.75, Percent Change: +7.16