Under a Motley Fool scenario, a $10,000 investment in Dutch Bros could be worth $16,600 by 2029 if the chain reaches management’s 2,029-store goal. The estimate assumes 18% annual revenue growth and an unchanged price-to-sales ratio of 2.6.
Dutch Bros had 1,225 locations as of June 30. The 18% annual revenue-growth assumption is below its 30% pace over the previous three years, and shares were 55% below their peak on Sept. 24. The article says competition from Starbucks, McDonald’s, Dunkin’, 7 Brew Coffee, The Human Bean and Biggby Coffee could make expansion difficult; it cautions that long-term success is not guaranteed.
