Dutch Bros Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

A week ago, Dutch Bros Inc. (NYSE:BROS) came out with a strong set of second-quarter numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of US$416m arriving 3.0% ahead of forecasts. Statutory earnings per share (EPS) were US$0.20, 8.6% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Dutch Bros' 15 analysts is for revenues of US$1.60b in 2025. This would reflect a solid 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 32% to US$0.59. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.59b and earnings per share (EPS) of US$0.57 in 2025. So the consensus seems to have become somewhat more optimistic on Dutch Bros' earnings potential following these results.

Check out our latest analysis for Dutch Bros

There's been no major changes to the consensus price target of US$82.31, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Dutch Bros at US$92.00 per share, while the most bearish prices it at US$73.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Dutch Bros'historical trends, as the 22% annualised revenue growth to the end of 2025 is roughly in line with the 28% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 10.0% per year. So it's pretty clear that Dutch Bros is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Dutch Bros' earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Dutch Bros going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Dutch Bros that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.