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🤔 My Thoughts
Hey, let’s chat about a stock that’s raising some eyebrows in this wild market—Dutch Bros Inc. (NYSE:BROS). You might want to think twice before diving in or even consider ditching it if it’s in your portfolio.
Dutch Bros is this trendy drive-thru coffee chain from Oregon, blowing up with younger folks thanks to its cool vibe and slick mobile app.
They’re going head-to-head with big dogs like Starbucks, Dunkin’, and Peet’s Coffee. Dutch Bros has this franchise-light setup and a high-energy brand that’s helping it snag market share. But this might be an unfair fight….
In 2021, they went wild, opening 151 new shops—that’s an 18% jump in locations! Sales were on fire too, with a 33% revenue spike, partly because same-store sales grew by a solid 5.3%. But here’s the catch: they’re planning some big moves in 2025, and those could eat into their profits. With construction costs climbing and potential tariff hikes, they’re looking at dropping around $250 million on new shops. That’s a lot of dough, and it could slow down their growth plans.
Now, their P/E ratio is a jaw-dropping 175.82, which screams that investors are betting big on future profits. But here’s where it gets shady—insiders are bailing, with a 33.81% drop in their transactions. That’s a massive red flag.
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