Should You Buy Dutch Bros Stock Now or Wait?

Growing quick-service coffee chain Dutch Bros (NYSE: BROS) has fallen roughly 55% from its high. The stock came public in September of last year, near the height of the market before the painful slide that's taken place since then. The success of industry giant and competitor Starbucks has shown how lucrative the coffee business can be for shareholders, and Wall Street priced Dutch Bros for high expectations.

A lot has changed in a year, and you might wonder whether Dutch Bros can live up to the hype it once had and whether the stock is valued low enough to buy in a turbulent market. Fear not. Peeling back the layers of this onion will reveal some critical observations to help you decide whether to buy shares. Here is what you need to know.

Dutch Bros operates approximately 603 locations across 14 states in America. The company's brand offers quick, fun, drive-thru service with energetic employees ("Broistas"), and vibrant flavors of hot and cold brewed beverages, smoothies, and energy drinks. Dutch Bros refers to its growth as "sharing the Dutch Luv" on its website, and that's precisely what it's doing.

Continue reading


Source Fool.com