Empowered Funds LLC Buys New Shares in Dutch Bros Inc. $BROS

Key Points

• Empowered Funds LLC acquired 25,830 Dutch Bros shares worth approximately $1.31 million in the first quarter. Institutional investors and hedge funds collectively own 85.54% of BROS.
• Dutch Bros reported a strong second quarter, with adjusted EPS of $0.33 versus the $0.29 estimate and revenue up 32.5% year over year to $550.85 million. Management also projected 2026 revenue of roughly $2.1 billion to $2.13 billion.
• Despite generally bullish analyst ratings and a consensus price target of $77.15, BROS traded near $52.94 and remains richly valued at about 73.5 times earnings. Recent insider selling and concerns about expansion costs may be contributing to near-term pressure.

Empowered Funds LLC acquired a new position in shares of Dutch Bros Inc. (NYSE:BROS - Free Report) during the 1st quarter, according to its most recent filing with the SEC. The institutional investor acquired 25,830 shares of the company's stock, valued at approximately $1,309,000.

Several other hedge funds have also modified their holdings of the stock. Marshall Wace LLP grew its stake in shares of Dutch Bros by 15.1% during the 4th quarter. Marshall Wace LLP now owns 3,098,288 shares of the company's stock valued at $189,677,000 after buying an additional 407,528 shares during the period. Ninety One UK Ltd raised its position in shares of Dutch Bros by 1.5% in the 4th quarter. Ninety One UK Ltd now owns 2,625,483 shares of the company's stock worth $160,732,000 after buying an additional 39,781 shares during the period. Invesco Ltd. raised its position in shares of Dutch Bros by 4.0% in the 3rd quarter. Invesco Ltd. now owns 2,426,657 shares of the company's stock worth $127,011,000 after buying an additional 93,515 shares during the period. Geode Capital Management LLC boosted its holdings in Dutch Bros by 1.8% in the fourth quarter. Geode Capital Management LLC now owns 2,265,083 shares of the company's stock valued at $138,699,000 after acquiring an additional 39,349 shares during the last quarter. Finally, State Street Corp boosted its holdings in Dutch Bros by 1.8% in the fourth quarter. State Street Corp now owns 2,020,112 shares of the company's stock valued at $123,671,000 after acquiring an additional 35,854 shares during the last quarter. 85.54% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Dutch Bros

Here are the key news stories impacting Dutch Bros this week:

• Positive Sentiment: Q2 results exceeded expectations. Dutch Bros reported adjusted earnings of $0.33 per share versus the $0.29 consensus estimate, while revenue increased 32.5% year over year to $550.85 million, topping estimates of $525.39 million. Strong same-store sales, customer traffic and new-store growth supported the beat. Dutch Bros Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised its outlook. Dutch Bros projected 2026 revenue of approximately $2.1 billion to $2.13 billion and highlighted sustained traffic growth, digital initiatives and food offerings that could increase customer visits. The company also continues targeting 2,029 shops by 2029. Dutch Bros 2026 Revenue Outlook
• Positive Sentiment: Analysts remain generally bullish. Stephens reaffirmed its overweight rating with an $80 price target, while Royal Bank of Canada maintained an outperform rating despite reducing its target from $75 to $70. Royal Bank of Canada Price Target
• Neutral Sentiment: Dutch Bros agreed to acquire up to 65 closed Salad and Go locations for $105 million. The sites across four states could accelerate store expansion and provide attractive real estate, but the transaction adds capital requirements and integration and redevelopment risk. Dutch Bros Salad and Go Acquisition
• Negative Sentiment: The market’s reaction suggests expectations were elevated. Even with the earnings beat and higher guidance, investors may be taking profits or questioning whether rapid expansion and the Salad and Go purchase can justify Dutch Bros’ premium valuation. The stock trades at roughly 73.5 times earnings and remains below its 50-day moving average, contributing to near-term selling pressure.

Dutch Bros Trading Down 0.7%

Shares of BROS opened at $52.94 on Friday. Dutch Bros Inc. has a one year low of $44.58 and a one year high of $74.65. The stock has a 50-day moving average price of $64.91 and a 200 day moving average price of $57.47. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.19 and a current ratio of 1.35. The company has a market capitalization of $9.25 billion, a P/E ratio of 73.52, a P/E/G ratio of 1.61 and a beta of 2.32.

Dutch Bros (NYSE:BROS - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.33 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.04. Dutch Bros had a return on equity of 10.01% and a net margin of 4.91%.The business had revenue of $550.85 million during the quarter, compared to the consensus estimate of $525.38 million. During the same period last year, the firm earned $0.26 earnings per share. The company's revenue for the quarter was up 32.5% compared to the same quarter last year. Sell-side analysts forecast that Dutch Bros Inc. will post 0.84 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on BROS. KeyCorp lifted their price objective on Dutch Bros from $77.00 to $79.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. Weiss Ratings restated a "hold (c)" rating on shares of Dutch Bros in a report on Friday, July 17th. Piper Sandler lifted their price target on shares of Dutch Bros from $61.00 to $68.00 and gave the company a "neutral" rating in a research report on Monday, June 22nd. Freedom Capital upgraded shares of Dutch Bros to a "strong-buy" rating in a research note on Wednesday, July 1st. Finally, DA Davidson dropped their price objective on shares of Dutch Bros from $90.00 to $85.00 and set a "buy" rating for the company in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Dutch Bros has a consensus rating of "Moderate Buy" and an average price target of $77.15.

Insider Buying and Selling at Dutch Bros

In other Dutch Bros news, Chairman Travis Boersma sold 750,000 shares of the firm's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $63.02, for a total value of $47,265,000.00. Following the transaction, the chairman owned 2,410,800 shares of the company's stock, valued at $151,928,616. This trade represents a 23.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Dm Individual Aggregator, Llc sold 261,055 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $63.02, for a total value of $16,451,686.10. Following the completion of the sale, the insider directly owned 2,410,800 shares in the company, valued at approximately $151,928,616. This trade represents a 9.77% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 4,086,245 shares of company stock worth $243,021,771 over the last 90 days. Insiders own 38.90% of the company's stock.

Dutch Bros Company Profile

Dutch Bros Coffee, trading on the NYSE under the ticker BROS, is an American drive-through coffee chain known for its quick-service model and community-focused brand. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company began as a single coffee stand and has since expanded its footprint across numerous U.S. markets. Dutch Bros specializes in handcrafted espresso drinks, drip coffee, cold brew, energy drinks, smoothies, teas, and a variety of signature “Dutch Freeze” and “Dutch Frost” blended beverages.

The company operates a mix of company-owned and franchised locations, placing a strong emphasis on speed and customer engagement.

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