Dutch Bros Stock: 3 Reasons To Avoid Despite Impressive Growth

Jul. 18, 2023 11:57 AM ETDutch Bros Inc. (BROS) StockBROS26 Comments
Dilantha De Silva
12.3K Followers

Summary

  • From its origins on the West Coast, Dutch Bros Inc. has rapidly expanded its footprint across the West and Southwest, boasting 716 locations in 14 states as of March.
  • Dutch Bros reported exceptional revenue growth of 48% in 2022 aided by the success of its expansion efforts and has gotten off to a good start in 2023.
  • To counter the deceleration of same-shop sales and maintain growth momentum, Dutch Bros has implemented several strategic measures.
  • The coffee industry in the United States has witnessed notable shifts in consumption patterns, influenced by various factors such as technology, demographics, and the impact of the COVID-19 pandemic.
  • There are 3 main reasons to remain on the sidelines today, although Dutch Bros has positioned itself to grow while achieving operational efficiencies.

Dutch Bros Coffee Shop

hapabapa

They say America is the land of opportunities. There is no denying that, but America also is the land of coffee consumption. By total coffee consumption, the U.S. is ahead of any other country by an eye-popping margin.


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    This article was written by

    12.3K Followers
    Dilantha De Silva is an experienced equity analyst and investment researcher with over 10 years in the investment industry. He writes insightful articles for Seeking Alpha, GuruFocus, TipRanks, and ValueWalk, with a significant following on Seeking Alpha. Dilantha’s expertise spans across various sectors, with a particular focus on small-cap stocks that are overlooked by Wall Street analysts. He is a CFA Level III candidate and an Associate Member of the Chartered Institute for Securities and Investment (CISI). Dilantha has been featured on CNBC and Bloomberg, and his work has been prominently showcased on Nasdaq, Yahoo Finance, and other leading investment platforms. When not analyzing stocks and writing, Dilantha is involved in private equity transactions, including acquiring and managing businesses.

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