BROS fundamental analysis

**Dutch Bros (BROS) Fundamental Analysis** 🍵 1. **Revenue Growth and Performance**: - Dutch Bros reported a total revenue of $355.15 million, with a year-over-year growth rate of 29.1%. This indicates robust revenue growth and successful business expansion efforts. - The company-operated shop contribution margin was 29.4%, which is a key metric for profitability and indicates efficient shop-level productivity. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |BROS|BROS.N|Dutch Bros|2024 Q2|128.15364020183299|30.030134585139205|139.99999999999997|169| |BROS|BROS.N|Dutch Bros|2024 Q3|62.01775986866652|27.865047049794523|57.14285714285713|169| |BROS|BROS.N|Dutch Bros|2024 Q4|268.9307508622977|34.88979746028498|250|169| |BROS|BROS.N|Dutch Bros|2025 Q1|38.637064446500155|29.099705924049164|62.5|169| |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |BROS|BROS.N|Dutch Bros|2024 Q2|30.030134585139205|3.24918E8|169| |BROS|BROS.N|Dutch Bros|2024 Q3|27.865047049794523|3.38212E8|169| |BROS|BROS.N|Dutch Bros|2024 Q4|34.88979746028498|3.42786E8|169| |BROS|BROS.N|Dutch Bros|2025 Q1|29.099705924049164|3.55152E8|169| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |BROS|BROS.N|Dutch Bros|2024 Q2|128.15364020183299|2.2156E7|169| |BROS|BROS.N|Dutch Bros|2024 Q3|62.01775986866652|2.1712E7|169| |BROS|BROS.N|Dutch Bros|2024 Q4|268.9307508622977|6367000|169| |BROS|BROS.N|Dutch Bros|2025 Q1|38.637064446500155|2.248E7|169| |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |BROS|BROS.N|Dutch Bros|2024 Q2|139.99999999999997|0.12|169| |BROS|BROS.N|Dutch Bros|2024 Q3|57.14285714285713|0.11|169| |BROS|BROS.N|Dutch Bros|2024 Q4|250|0.03|169| |BROS|BROS.N|Dutch Bros|2025 Q1|62.5|0.13|169| 2. **Profitability and Margins**: - Despite robust top-line gains, Dutch Bros is facing challenges in maintaining profitability due to rising costs, such as labor investments, tariff-related coffee costs, and increased pre-opening expenses. - The company anticipates a decline in margin in 2025, with around 110 basis points of net COGS margin pressure, including tariff impacts. 3. **Financial Health and Liquidity**: - Dutch Bros has a debt-to-equity ratio of 0.36%, which is relatively low and suggests a strong interest coverage capacity. - The company reported a negative free cash flow of -$8.67 million, which could be a concern for investors regarding its liquidity and ability to fund growth initiatives. |code|Ticker|Name|Date|Free Cash Flow|Debt-to-Equity Ratio|market_code| |---|---|---|---|---|---|---| |BROS|BROS.N|Dutch Bros|2024 Q2||0.3331652535173442|169| |BROS|BROS.N|Dutch Bros|2024 Q3|-9.6702244608E7|0.3190065779072131|169| |BROS|BROS.N|Dutch Bros|2024 Q4|-1.2885808028E8|0.31035065096581205|169| |BROS|BROS.N|Dutch Bros|2025 Q1|1.2436351862E7|0.355893869411354|169| 4. **Valuation Metrics**: - The P/E ratio for Dutch Bros is 270.54, which is significantly high and suggests that the stock is trading at a premium compared to its earnings. - The P/S ratio is 8.74, indicating that the company is valued highly relative to its sales. - The Price to Book Ratio is 19.67, which is also high and suggests that the market is valuing the company's equity component heavily. 5. **Return Metrics**: - Dutch Bros reported a ROE of 2.7% and a ROA of 1.18%, which are relatively low and suggest that the company is not generating high returns on shareholders' equity or total assets. 6. **Dividend and Share Buyback Activity**: - The company does not appear to prioritize dividend payments, which could be due to its focus on reinvestment for growth. - There is no information on share buybacks or repurchases, which could be a sign of the company's confidence in its future cash flows and stock valuation. In conclusion, Dutch Bros (BROS) demonstrates strong revenue growth and successful business expansion efforts, but faces challenges in maintaining profitability due to rising costs. The company's financial health is stable, but the negative free cash flow