Dutch Bros' (BROS) strategic initiatives are expected to support solid Q2 results and continued momentum into H2, UBS said in a note Tuesday.
The brokerage said the company's unique brand positioning and traction on strategic plans will support solid same shop sales over the coming years.
UBS said the company remains its top pick, adding that it expects traffic momentum, the food rollout, a sizable development opportunity, and earnings before interest, taxes, depreciation, and amortization upside potential to support gains for shares.
The brokerage also said margin pressure is set to improve in 2026 despite elevated coffee & food rollout costs.
UBS maintained the company's buy rating and $85 price target.
Price: $64.92, Change: $-0.78, Percent Change: -1.19%