Dutch Bros Inc. (BROS): one to watch?

Beat-and-raise quarter that crashed anyway on decelerating traffic growth and a pricey acquisition — not a broken business, but momentum story is cracking.

👀 WATCH Fundamentals57/100

Fell 19% in 1 trading day(s) — now $53.33

Why BROS dropped

Dutch Bros beat Q2 revenue/earnings estimates and raised full-year guidance, but the stock fell because Q3 same-store sales guidance of 4-5% is a step down from Q2's 5.8%, transaction growth is slowing (system-wide transactions up just 1.7% vs 3.7% a year ago), and investors are wary that guidance raises are being propped up by an acquired franchise (Phoenix) and a new, capital-intensive Salad and Go real estate deal rather than pure organic growth.

Fwd P/E 41.5Op margin 12.9%Rev growth 32.5%Debt/equity 123.8%Analyst upside 49.6%

How this scored 57/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 4.9%

✅ Generates cash Free cash flow $51M

✅ Not drowning in debt Debt/equity 123.8% (limit 200%)

✅ Can pay its bills Current ratio 1.4 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 10/25

Operating margin 12.9% 5/9

Net profit margin 4.9% 2/8

Return on equity 14.6% 4/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 32.5% 9/9

Earnings growth 37.5% 8/8

Expected profit change 78.5% 8/8

Value Is it cheap right now? 9/25

Forward P/E 41.5 0/10

PEG ratio 1.9 3/8

Analyst target upside 49.6% 6/7

Balance sheet Will it survive? 13/25

Debt / equity 123.8% 4/10

Current ratio 1.4 2/8

Free cash flow $51M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-07. Research only — not financial advice.