Dutch Bros (BROS) could benefit from a strong store expansion trajectory, rising same-store sales, mobile ordering growth, food initiatives, easing coffee costs and improving cash generation through 2028, Oppenheimer said in a note Friday, highlighting the stock's attractive growth algorithm.

The investment firm said Dutch Bros has a clear path to reach 2,029 stores by 2029, up from 1,136 now, with room to expand beyond its current 25-state footprint, and the company has strong customer loyalty, record average unit volumes of $2.1 million, and a menu where energy drinks and refreshers make up about half of sales.

Same-store sales could grow 4.7% in 2026, above the company's 3% to 5% outlook, helped by food, mobile ordering, and newer stores, Oppenheimer said.

The 2026 setup looks attractive because coffee cost pressure is already included in forecasts, while coffee prices have started to ease, according to the note, with upside potential from stronger same-store sales and operating leverage.

Oppenheimer started coverage of the stock with an outperform rating and a $72 price target.

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