Can Dutch Bros Stock Grow Into Its Premium Valuation?
Recent IPO Dutch Bros (NYSE: BROS) has grown from humble beginnings. Starting in the sleepy rest stop town Grants Pass in southern Oregon three decades ago, the drive-thru coffee stand chain now sports 671 locations across the western United States.
But management thinks the innovative drink stand concept is just getting started, with plans to almost 10x its store count across the country over the next 10 to 15 years. Even with the stock down 30% this year, investors are betting big that management can execute this growth strategy, assigning the stock a hefty earnings multiple at the moment.
The future is wide and uncertain for Dutch Bros. Can the brand become a nationwide phenomenon? Is it poised to grow into its premium valuation? Let's take a look.
Source Fool.com
