Where Will Dutch Bros Stock Be in 5 Years?
It can be tempting to jump on the chance to buy a hip new stock as soon as it hits public markets. But with shares down around 40% since its initial public offering (IPO), Dutch Bros (NYSE: BROS) is an example of why it can pay to be more patient. Let's dig deeper to see if this innovative coffee chain can recover over the next half-decade and beyond.
Although many Americans have just recently become familiar with it, Dutch Bros is far from a new company. The convenience-focused drive-thru coffee chain was founded in 1992 in Oregon before slowly spreading across the Western United States. After going public, its expansion plans have accelerated as it seeks to compete against established rivals like , Dunkin' Brands, and Restaurant Brands International's Tim Hortons.
Although it may look simple, the coffee industry is not for the weak-hearted. Some experts estimate that 62% of independent shops fail in their first five years of operation. And Dutch Bros' journey from its humble beginnings into a semi-national chain (with 912 locations across 18 states) says a lot about its value proposition to consumers.
Source Fool.com
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