Share of drive-thru coffee shop operator Dutch Bros are on a roll. As Wednesday's pick for IBD 50 Growth Stocks To Watch, Dutch Bros stock now looks to extend a win streak as it closes in on a buy point.
The coffee shop operator recently launched its seasonal drinks, hoping to entice thirsty customers needing a boost. Dutch Bros stock reclaimed a key moving average in its current jaunt higher.
Dutch Bros rolled out three fall flavors on Aug. 22, available at all its coffee shops. In its latest earnings report, the company reported it had 1,043 locations across 19 states as of June 30.
It brought back its popular Caramel Pumpkin Brulee and Cookie Butter Latte flavors, both available in hot or cold options. Also on the fall menu is Candied Cherry Rebel, a cold beverage made with its Rebel energy drink.
"Both Caramel Pumpkin Brulee and Cookie Butter were a hit with customers last year, so it only felt natural to bring them back for even more fun fall festivities," Dutch Bros Chief Marketing Officer Tana Davila said in a recent press release announcing the product additions.
Dutch Bros has to compete with Starbucks' fall flavors, including its Pumpkin Spice Latte. Starbucks made its fall flavors available on Monday.
IBD 50 name Dutch Bros was recently highlighted as an IBD Sector Leader. It ranks first out of the 56 stocks in the Retail-Restaurants group, which ranks 80th out of the 197 industry groups tracked by Investor's Business Daily.
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Dutch Bros Stock Picks Up Steam
The coffee shop stock advanced around 3% Wednesday and is on pace for five straight days of gains. Shares reclaimed their 50-day moving average on Aug. 22. The stock has gained around 41% so far this year.
Dutch Bros stock is climbing in a third-stage consolidation pattern with a 77.88 buy point, according to MarketSurge pattern recognition.
Its relative strength line is on the mend after hitting a low in early August. Share volume has been picking up on rising days, which is a positive sign for Dutch Bros stock.
Its IBD Accumulation/Distribution Rating of B indicates moderate institutional buying over the last 13 weeks. Further, mutual funds own 76% of shares and have boosted their positions for eight straight quarters, according to IBD Stock Checkup.
Analysts Raise Coffee Shop's Profit Estimates
Dutch Bros handily topped second-quarter profit and sales estimates on Aug. 6. Earnings grew to 26 cents a share vs. 19 cents a share a year ago.
Its revenue increased 28% while its same-shop sales gained 6.1%. The coffee shop operator's sales growth has averaged 31% over the last eight quarters.
Dutch Bros also raised its full-year 2025 revenue outlook to a range of $1.59 billion to $1.6 billion, with same-shop sales growth of around 4.5%.
Wall Street projections see sales rising an average of 24% over the next four quarters. Analysts also recently lifted their full-year 2025 profit estimates to 68 cents per share, or 39% growth. They now forecast 2026 profit to rise 30% to 88 cents per share.
Lastly, the company holds a score of 97 out of a best-possible 99 in both its Earnings Per Share and Composite ratings from IBD.
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