10 Stocks with Insanely High PE Ratios Insiders Are Selling

8. Dutch Bros Inc. (NYSE:BROS)

P/E Ratio: 175.82

Insider Transaction: -33.81%

Dutch Bros Inc. (NYSE:BROS) is a rapidly expanding drive-thru coffee chain in the U.S., based in Oregon. The company targets younger demographics through lifestyle branding and mobile engagement. Starbucks, Peet’s Coffee, and Dunkin’ dominate the market. However, by leveraging its franchise-light model and energetic brand identity, the company gains market share. Dutch Bros Inc. (NYSE:BROS) expands store count across the Sun Belt and Midwest regions and uses the strength of regional customer loyalty in a competitive foodservice environment to support stable revenue.

Dutch Bros Inc. (NYSE:BROS) has opened 151 new shops in 2021, leading to an 18% increase in the number of shops. The company has also realized a 33% growth in total revenue during the year, partly contributed by a 5.3% system same-store sales growth. However, the company is planning to make investments in 2025, which may offset financial growth achieved through sales. The growing construction costs and the uncertain tariff rates could potentially raise the capital expenditure of new shops to approximately $250 million, which would impact the development pipeline.

The company has a P/E value of 175.82, which, in addition to aggressive expansion, points to confidence in the company’s long-term profitability. Meanwhile, Dutch Bros Inc. (NYSE:BROS)’s 33.81% change in insider transactions raises questions about insiders’ confidence in the company’s ability to meet these expectations. It is among the stocks insiders are selling.