Is Dutch Bros a good stock to buy?

Dutch Bros is expanding fast, with 950 stores now operating in 18 states. The stock is trading at high valuation multiples, which accounts for significant future growth and leaves little room for operating error. The investment decision depends on your risk tolerance and belief in Dutch Bros’ growth potential. Is Dutch Bros the next big thing?

Why is Dutch Bros a bad stock?

Because of its negative cash flows, Dutch Bros has an uncomfortable habit of raising money through additional stock sales. The share count has nearly doubled in two years, with a 41% increase in the last year. As a result, Dutch Bros' market cap soared 171% higher in 12 months while investors pocketed a smaller 80% gain.

What is the average price target for Dutch Bros?

The average price target represents a decline of 10.65% from the last closing price of $55.14. Dutch Bros currently has an average brokerage recommendation (ABR) of 1.50 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 12 brokerage firms.