Dutch Bros Likely Faces More Competition in 2027, RBC Says

MT Newswires Live10-22

Dutch Bros (BROS) could face slowing growth prospects amid rising competition, potentially an increasing headwind to its market share, RBC Capital Markets said in a Thursday note.

"Intensifying competition and underlying SSS growth deceleration lowers our conviction in comps reaccelerating in 2027, which could limit multiple upside," the report said.

The report said checks suggest 7 Brew will surpass Dutch Bros' unit count next year with increasing proximity, and also pointed to challenging compares in 2027.

For Q3 results due on Nov. 4, the company is expected to deliver a slight miss on same-store sales growth, the note said.

RBC downgraded the stock to sector perform from outperform and lowered its price target to $46 from $70.

Price: 41.35, Change: -0.91, Percent Change: -2.15

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