3 Reasons to Buy Dutch Bros Stock Like There's No Tomorrow
Investors aren't sure what to make of coffee chain Dutch Bros (NYSE: BROS). Sales are soaring thanks to its rapid expansion, but there are indications it needs more time to prove itself and its business model.
Dutch Bros stock is down 13% over the past year and 9% so far in 2024. It trades at a price-to-sales ratio of 1.9, which is inexpensive for a high-growth stock. Here are three reasons to scoop up shares at this price.
Dutch Bros has had a bit of a comparable sales (comps) problem since inflation started to balloon. Comps strip out the effect of new store openings on revenue to measure how much growth existing stores are seeing (or not seeing). Dutch Bros' revenue growth is high, but most of it comes from new locations.
Source Fool.com
