30 Stocks That Should Double in 3 Years

22. Dutch Bros Inc. (NYSE:BROS)

Number of Hedge Fund Holders: 41

Dutch Bros Inc. (NYSE:BROS) operates and franchises drive-thru shops in the US. It operates through Company-Operated Shops & Franchising and Other segments. It operates through company-operated shops and online channels under the Dutch Bros, Dutch Bros Coffee, Dutch Bros Rebel, Dutch Bros, and Blue Rebel brands.

On March 14, TD Cowen analyst Andrew Charles maintained a Buy rating on the stock with a $89 price target. The sentiment came from the company’s strong growth trajectory due to its potential for expansion based on the trends surrounding the TAM. In Q4 2024, revenue from company-operated shops reached $314 million, which was up 38% year-over-year. This was supported by a company-operated same-shop sales growth of 9.5%, with 5.2% attributed to transaction growth.

Furthermore, beverage, food, and packaging costs for these shops were favorable at 25.4% of revenue, which was a 1.2% improvement driven by pricing. In 2024, 128 out of the 151 new shop openings were company-operated. Dutch Bros Inc. (NYSE:BROS) has a strong pipeline for 2025, with plans to open at least 160 new shops system-wide.

Wasatch Small Cap Growth Strategy stated the following regarding Dutch Bros Inc. (NYSE:BROS) in its Q1 2025 investor letter:

“Another large contributor was Dutch Bros Inc. (NYSE:BROS), a drive-through coffee company in the U.S. that serves customizable hot, iced and blended beverages. Strong fundamentals continue to lift the stock higher. In February, the company announced quarterly revenue and earnings growth that exceeded expectations and announced plans to open more than 150 new stores in 2025. While we like the concept of Dutch Bros.’ stores, the stock has risen substantially in the short time we owned it, and we trimmed the position after those gains.”