Dutch Bros Stock Growth Forecast for the Next Year

Dutch Bros Stock Forecast

The market could be missing a key factor here. Coffee chain Dutch Bros (NYSE: BROS) has been around for 30 years, but it's only recently become a public company and decided to attempt a huge expansion. It's reporting high growth and improving profitability, but investors haven't been so keen on it recently. Where will the company and its stock be a year from now?

2023 Milestones

All those things go together. The co-founder and CEO stepped down to make way for a new top executive to lead the company into its next growth stage. Current CEO Christine Barone comes from Starbucks, as do many of her new hires.

Market Opportunity

Management sees the opportunity to reach at least 4,000 stores over the next few years. Dutch Bros's concept is resonating with its core West Coast market and demonstrating its ability to travel eastward. The company plans to open as many as 165 stores in 2024.

Growth Potential

A year from now, Dutch Bros will have more stores and is likely to enter additional states. Revenue growth should continue to be strong. Keep an eye on same-store sales growth, which indicates how much it's increasing sales per store. Although in growth mode, Dutch Bros aims for consistent progression and increased profitability by 2024.

Investment Opportunity

Dutch Bros is well positioned for expansion and has attracted an experienced team to drive growth. Despite recent stock price declines, its low valuation relative to sales may present an attractive opportunity for investors considering the company's long-term potential.