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Dutch Bros Inc. (BROS) Rating Raised to Buy as Goldman Sees Undervalued Growth Potential

Dutch Bros Inc. (NYSE:BROS) is one of the most promising restaurant stocks to buy according to hedge funds.

TheFly reported on March 2 that Goldman Sachs raised its rating on BROS from Neutral to Buy and kept its price target at $75. The firm said it sees stronger underlying business performance than the market currently recognizes and believes the recent decline in the stock price creates a compelling opportunity to invest in a company with one of the most attractive growth profiles in the U.S. restaurant sector.

Earlier on February 12, Dutch Bros Inc. (NYSE:BROS) announced its fourth quarter and full year report. The company expanded throughout 17 states in the fourth quarter by opening 55 new stores, including 52 company-operated sites. Compared to $342.8 million in the same quarter of 2024, total revenue climbed 29.4% year over year to $443.6 million. While transactions increased by 5.4%, system-wide same-shop sales jumped by 7.7%.

The report also shows that the Company-operated same-shop sales climbed 9.7%, with transactions up 7.6%. While adjusted EBITDA increased 48.8% to $72.6 million, net income increased to $29.2 million from $6.4 million in the previous year. Revenue climbed to $1.64 billion from $1.28 billion, and net income to $117.3 million from $66.5 million for the entire year.

The company anticipates at least 181 new store openings, adjusted EBITDA of $355 million to $365 million, same-shop sales growth of 3% to 5%, revenue of $2.0 billion to $2.03 billion, and capital expenditures of $270 million to $290 million in 2026.

Dutch Bros Inc. (NYSE:BROS) is a U.S. drive‑through coffee chain serving coffee, energy drinks, and other beverages through company‑operated and franchised locations nationwide.

While we acknowledge the potential of BROS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BROS and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT15 Best Electric Utility Stocks to Invest In Now and 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.

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