Dutch Bros reports $275m Q1 revenue (+39% YoY), plans 4,000 store expansion, but has a high valuation and limited growth opportunities.
Dutch Bros, a fast-growing drive-thru coffee chain, reported strong Q1 revenues ($275m, +39% YoY) and an EBITDA of $52.5m. With 876 stores across 17 states, the company plans to open 4,000 stores in the next 10-15 years. However, its premium valuation (EV/EBITDA 20x, P/E 104x) and limited expansion opportunities due to its drive-thru model make it a risky investment, with a hold rating more appropriate.
June 16, 2024
3 Articles