Dutch Bros Inc.

Builders FirstSource, Inc. BLDR is slated to report third-quarter 2025 results on Oct. 30, before market open.
In the last reported quarter, the company’s adjusted earnings per share (EPS) surpassed the Zacks Consensus Estimate by 1.3%, but net sales marginally missed the same by 0.1%. On a year-over-year basis, both top and bottom lines tumbled 5% and 32%, respectively.
BLDR’s earnings topped the consensus mark in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 1.11%.
Trend in BLDR’s Estimates
The Zacks Consensus Estimate for Builders FirstSource’s third-quarter EPS has moved south to $1.69 from $1.71 in the past 30 days. The estimated figure indicates a 45% year-over-year decline from EPS of $3.07 reported in the year-ago quarter.
Builders FirstSource, Inc. Price and EPS Surprise
The consensus estimate for net sales is pegged at $3.80 billion, indicating a decline of 10.3% from $4.23 billion reported in the year-ago quarter.
Factors to Shape Builders FirstSource’s Q3 Results
Net Sales
Builders FirstSource’s net sales are expected to have declined year over year in the third quarter of 2025 due to softness and uncertainty surrounding the housing market. The affordability concerns due to a still high mortgage rate and persistent sticky inflation are marring the housing start trends, which have been directly affecting the company’s sales volume. Also, the declining trends in the multi-family and single-family customer segments are likely to have added to the downtrend during the third quarter.
Furthermore, the value-added product category of BLDR, which includes manufactured products and windows, doors & millwork, is likely to have been adversely impacted by the ongoing market headwinds.
For the third quarter, the company expects net sales between $3.65 billion and $3.95 billion, down from $4.23 billion reported in the year-ago quarter.
That said, BLDR’s focus on strategic acquisitions, digital solutions and productivity, as well as investments in innovative and value-added products, is likely to have backed its quarterly performance to some extent.
Earnings
The bottom line of Builders FirstSource is likely to have declined year over year due to ongoing single-family and multi-family margin normalization alongside a below-normal housing starts environment. Moreover, reduced operating leverage and continued pressure in commodity product categories despite cost-saving efforts are expected to have pressured the margins in the third quarter.
For the to-be-reported quarter, BLDR expects adjusted EBITDA in the range of $375-$425 million, down from $626.5 million reported in the year-ago quarter.
What the Zacks Model Predicts for BLDR
Our proven model does not conclusively predict an earnings beat for Builders FirstSource this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.
BLDR’s Earnings ESP: BLDR has an Earnings ESP of -2.73%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank of BLDR: The company currently carries a Zacks Rank of 5 (Strong Sell).
Stocks With the Favorable Combination
Here are some companies in the Zacks Retail-Wholesale sector, which per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.
Dutch Bros Inc. BROS currently has an Earnings ESP of +6.93% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the to-be-reported quarter, Dutch Bros’ earnings are expected to increase 6.3%. Dutch Bros’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 91.9%.
Brinker International, Inc. EAT currently has an Earnings ESP of +1.28% and a Zacks Rank of 3.
In the to-be-reported quarter, Brinker’s earnings are expected to register an 85.3% year-over-year surge. Brinker's earnings surpassed estimates in each of the trailing four quarters, with an average beat of 25.7%.
Darden Restaurants, Inc. DRI has an Earnings ESP of +4.64% and a Zacks Rank of 3 at present.
In the to-be-reported quarter, Darden’s earnings are expected to register a 3.5% year-over-year increase. Darden’s earnings beat estimates in one of the trailing four quarters and missed thrice, with an average miss of 0.54%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Builders FirstSource Set to Report Q3 Earnings: What's in Store?

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Bath & Body Works Inc (Symbol: BBWI), where a total volume of 35,425 contracts has been traded thus far today, a contract volume which is representative of approximately 3.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.7% of BBWI's average daily trading volume over the past month, of 5.9 million shares. Especially high volume was seen for the $20 strike put option expiring December 19, 2025, with 26,722 contracts trading so far today, representing approximately 2.7 million underlying shares of BBWI. Below is a chart showing BBWI's trailing twelve month trading history, with the $20 strike highlighted in orange:
Dutch Bros Inc (Symbol: BROS) options are showing a volume of 25,524 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 59.2% of BROS's average daily trading volume over the past month, of 4.3 million shares. Particularly high volume was seen for the $64 strike call option expiring October 31, 2025, with 12,726 contracts trading so far today, representing approximately 1.3 million underlying shares of BROS. Below is a chart showing BROS's trailing twelve month trading history, with the $64 strike highlighted in orange:
And Corning Inc (Symbol: GLW) options are showing a volume of 38,824 contracts thus far today. That number of contracts represents approximately 3.9 million underlying shares, working out to a sizeable 58.6% of GLW's average daily trading volume over the past month, of 6.6 million shares. Especially high volume was seen for the $95 strike call option expiring November 21, 2025, with 3,576 contracts trading so far today, representing approximately 357,600 underlying shares of GLW. Below is a chart showing GLW's trailing twelve month trading history, with the $95 strike highlighted in orange:
For the various different available expirations for BBWI options, BROS options, or GLW options, visit StockOptionsChannel.com.
Also see:
Funds Holding NXZ
IFEU shares outstanding history
ETFs Holding TCRD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Monday Option Activity: BBWI, BROS, GLW

Starbucks Corporation SBUX is scheduled to report fourth-quarter fiscal 2025 results on Oct. 29, 2025, after the closing bell.
SBUX’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed on two occasions, with an average surprise being 8.7%.
Trend in Estimate Revision of SBUX
The Zacks Consensus Estimate for fiscal fourth-quarter earnings per share (EPS) is pegged at 56 cents, indicating a fall of 30% from 80 cents reported in the year-ago quarter.
Starbucks Corporation Price and EPS Surprise
For revenues, the consensus mark is pegged at nearly $9.35 billion. The metric suggests a rise of 3% from the year-ago quarter’s figure.
Let’s take a look at how things have shaped up in the quarter.
Factors Likely to Shape Starbucks’ Quarterly Results
During the fiscal fourth quarter, Starbucks’ performance is expected to have reflected steady progress in its turnaround strategy under the “Back to Starbucks” plan. The company is likely to have benefited from the nationwide rollout of its Green Apron Service model, which aims to deliver consistent service standards and enhance operational efficiency across all U.S. company-operated stores. This initiative, combined with a renewed focus on customer connection and partner engagement, is anticipated to have supported improved speed of service, order accuracy and guest satisfaction during the quarter.
Seasonal beverage offerings, including the return of the Pumpkin Spice Latte and new protein cold foam beverages, are likely to have bolstered traffic and ticket growth. Additionally, targeted coffeehouse uplift investments and reimagined store layouts may have improved the in-store experience, driving stronger engagement among both Starbucks Rewards members and non-members. Our model predicts fiscal fourth-quarter same-store sales to rise 0.2% year over year.
On the international front, the company is expected to have maintained solid momentum, led by growth in China, the U.K. and Mexico, supported by beverage innovation, expanded delivery channels and store development. Our model predicts fiscal fourth-quarter international revenues to rise 7.4% year over year to $2 billion.
Despite these strengths, Starbucks’ bottom line is likely to have faced continued pressure from elevated labor expenses, added operating hours tied to Green Apron Service implementation and ongoing inflationary costs. Our model predicts fiscal fourth-quarter total operating expenses to rise 8% year over year to $5.47 billion.
Softer U.S. traffic trends, particularly in afternoon dayparts, along with a cautious consumer spending environment, are likely to have negatively impacted the company's performance in the fiscal fourth quarter.
What Our Model Says About SBUX Stock
Our proven model does not conclusively predict an earnings beat for Starbucks this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that's not the case here.
SBUX's Earnings ESP: Starbucks has an Earnings ESP of -8.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SBUX's Zacks Rank: The company has a Zacks Rank #3.
Stocks With the Favorable Combination
Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Dutch Bros Inc. BROS currently has an Earnings ESP of +6.93% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the to-be-reported quarter, Dutch Bros’ earnings are expected to increase 6.3%. Dutch Bros’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 91.9%.
Brinker International, Inc. EAT currently has an Earnings ESP of +1.28% and a Zacks Rank of 3.
In the to-be-reported quarter, Brinker’s earnings are expected to register an 85.3% year-over-year surge. Brinker's earnings surpassed estimates in each of the trailing four quarters, with an average beat of 25.7%.
Darden Restaurants, Inc. DRI has an Earnings ESP of +4.64% and a Zacks Rank of 3 at present.
In the to-be-reported quarter, Darden’s earnings are expected to register a 3.5% year-over-year increase. Darden’s earnings beat estimates in one out of the trailing four quarters and missed thrice, with an average miss of 0.54%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Starbucks to Post Q4 Earnings: What's in the Cards for the Stock?

Key Points
Carnival Corp.'s recently launched Celebration Key has already attracted 500,000 guests since July.
Dutch Bros' fast-growing drive-thru chain makes the stock's recent dip a great buying opportunity.
Take-Two's upcoming release of "Grand Theft Auto VI" on May 26, 2026, could fuel strong shareholder returns in 2026 and beyond.
There are attractive opportunities in the consumer discretionary sector. The following leaders in travel, beverages, and video games are experiencing strong momentum and offer excellent return prospects for investors.
Here's why these three growth stocks can move higher in 2026.
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1. Carnival Corp.
Demand for travel has not let up over the past few years. Carnival Corp. (NYSE: CCL) served more than 13 million passengers last year, and these customers continue to pay higher ticket prices as demand is outstripping the available capacity of Carnival's ships.
Carnival continues to report record revenue and profits, while bookings are filling up for 2026. Carnival's recently launched Celebration Key private island has already attracted 500,000 guests since opening in July.
The stock is up 270% since bottoming out in 2022, but investors are still getting great value for the shares. The stock is trading at a forward price-to-earnings multiple of 12 on next year's estimates, which is attractive for a growing cruise business.
2. Dutch Bros
Dutch Bros (NYSE: BROS) is a high-growth drive-thru beverage chain with a unique advantage. It focuses on giving customers a warm and friendly experience while grabbing a drink on the go, and it's still early in its long-term expansion across the U.S.
Investors worried about investing in an unproven concept should take heart that Dutch Bros has been around for more than 30 years, but it just completed an initial public offering in 2021 to finance its nationwide expansion strategy. The company currently operates around 1,000 shops with plans to expand that to 2,029 in the next four years.
The company's results have been outstanding. Revenue grew 28% year over year in the most recent quarter, with solid growth in transactions and same-shop sales. Management credits these strong financials to its people-first culture. After the recent pullback, the stock could be coiling for a rebound in 2026.
3. Take-Two Interactive
Take-Two Interactive (NASDAQ: TTWO) is one of the top video game producers in a growing $200 billion industry. Two of its most popular titles are Grand Theft Auto and NBA 2K. The latest installment in Grand Theft Auto has sold 215 million copies since 2013, making the upcoming new release scheduled for May 26, 2026, a major event that could send the stock up next year.
To understand how big the release of Grand Theft Auto VI could be next year, consider that the online multiplayer feature of the current game saw a 50% increase in new players this year. There is tremendous anticipation for the first release in the series in more than a decade that appears to already be driving more interest in the franchise.
While the stock has already climbed 40% year to date, it's a good bet it will continue to move up leading into the new release. Grand Theft Auto VI could drive years of strong player engagement and revenue that deliver excellent returns for shareholders.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Take-Two Interactive Software. The Motley Fool recommends Carnival Corp. and Dutch Bros. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Consumer Goods Stocks That Could Make Big Moves in 2026

The Cheesecake Factory Incorporated CAKE is scheduled to report third-quarter fiscal 2025 results on Oct. 28.
CAKE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise being 15.2%.
Trend in the Estimate Revision of CAKE
The Zacks Consensus Estimate for fiscal third-quarter earnings per share (EPS) is pegged at 60 cents, indicating a rise of 3.5% from 58 cents reported in the year-ago quarter.
The Cheesecake Factory Incorporated Price and EPS Surprise
For revenues, the consensus mark is pegged at nearly $912.9 million. The metric suggests a rise of 5.5% from the year-ago quarter’s figure.
Let’s take a look at how things have shaped up in the quarter.
Factors Likely to Shape Cheesecake Factory’s Quarterly Results
Cheesecake Factory’s fiscal third-quarter 2025 performance is likely to have benefited from steady demand trends, disciplined cost management and sustained brand relevance. Consistent guest traffic, aided by strategic menu innovations such as the introduction of “Bowls” and “Bites,” likely supported comparable sales growth during the quarter. Continued engagement from the Cheesecake Rewards program is also expected to have contributed to top-line performance. The company anticipates fiscal third-quarter total revenues in the range of $905 million to $915 million.
Strong contributions from North Italia Restaurants and Other FRC are likely to have aided the company’s performance in the fiscal third quarter. Our model predicts fiscal third-quarter revenues from North Italia Restaurants and Other FRC to rise 14.6% and 34.3% year over year to $82.3 million and $90 million, respectively.
CAKE’s profitability is expected to have remained healthy, backed by operational excellence, improved labor retention and favorable commodity costs. Efforts to optimize staffing levels, enhance labor productivity and manage food inflation likely supported restaurant-level margin stability. With four-wall margins reaching 18.5% in the prior quarter, the company remains well-positioned within its long-term margin target range of 16% to 18%. Management’s focus on driving efficiency while maintaining menu value and guest satisfaction has likely aided sequential margin resilience in the quarter to be reported.
However, modest wage inflation, higher medical costs and increased pre-opening expenses tied to new restaurant openings may have partially offset these gains. Additionally, softer discretionary spending and cautious consumer sentiment could have limited upside in traffic trends. Our model predicts fiscal third-quarter labor expenses to rise 5.5% year over year to $328.2 million.
What Our Model Says About CAKE Stock
Our proven model predicts an earnings beat for Cheesecake Factory this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
CAKE’s Earnings ESP: Cheesecake Factory has an Earnings ESP of +3.85%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CAKE’s Zacks Rank: The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With the Favorable Combination
Here are a few other stocks from the Zacks Retail-Wholesale sector, which, according to our model, also have the right combination of elements to post an earnings beat this reporting cycle.
Dutch Bros Inc. BROS currently has an Earnings ESP of +6.93% and a Zacks Rank of 1.
In the to-be-reported quarter, Dutch Bros’ earnings are expected to increase 6.3%. Dutch Bros’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 91.9%.
Brinker International, Inc. EAT currently has an Earnings ESP of +3.60% and a Zacks Rank of 3.
In the to-be-reported quarter, Brinker’s earnings are expected to register an 84.2% year-over-year surge. Brinker's earnings surpassed estimates in each of the trailing four quarters, with an average beat of 25.7%.
Darden Restaurants, Inc. DRI has an Earnings ESP of +4.64% and a Zacks Rank of 3 at present.
In the to-be-reported quarter, Darden’s earnings are expected to register a 3.5% year-over-year increase. Darden’s earnings beat estimates in one out of the trailing four quarters, and missed thrice, with an average miss of 0.54%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CAKE to Post Q3 Earnings: What's in the Cards for the Stock?

Key Points
Coca-Cola's impressive brand power is helping it grow sales in a tough economy.
TJX is thriving as consumers search for value.
Dutch Bros is growing fast and has plenty of room for further expansion.
Investors shouldn't take analysts' ratings and price targets too seriously, but it's worth looking at the stocks that are loved by the analysts on Wall Street. Coca-Cola (NYSE: KO), The TJX Companies (NYSE: TJX), and Dutch Bros (NYSE: BROS) are three consumer goods stocks that analysts are excited about. All three look like solid picks for an uncertain economy.
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1. Coca-Cola
Wall Street analysts are excited about Coca-Cola stock. Among the 25 analysts having an active rating on the stock in October, Coca-Cola garnered eight strong buy ratings and 14 buy ratings. The average analyst price target is nearly $78 per share, well above the current stock price.
Coca-Cola's third-quarter earnings report on Tuesday gave investors even more to like. Revenue grew by 5% year over year while global unit case volume edged up by 1%, a solid result given the tough macroeconomic backdrop. Coca-Cola's adjusted earnings per share rose by 6% to $0.82, beating analyst expectations.
In an uncertain economy, Coca-Cola's brand power is a valuable asset. Price increases drove part of the company's revenue growth in the third quarter, and consumers appeared unfazed. With meaningful pricing power, Coca-Cola is well positioned to weather any economic storm.
2. The TJX Companies
Off-price retailer TJX is a Wall Street darling, with 16 buy ratings and four strong buy ratings from analysts. There's a good reason for all the analyst love. TJX has been knocking it out of the park this year, even as other retailers struggle with the impact of tariffs and inflation.
In TJX's second quarter, comparable sales rose by 4%, beating the company's own expectations. The number of customer transactions grew across all the company's divisions. "As we have seen through so many different retail and economic environments, consumers were drawn to our excellent values and brands," said TJX CEO Ernie Herrman.
For the full fiscal year, TJX sees comparable sales growth of around 3%, along with a pre-tax profit margin between 11.4% and 11.5%. Earnings per share should rise by 6% or 7%, a solid result given the backdrop of U.S. tariffs. While the retail business as a whole is facing challenges, TJX is a rare bright spot.
3. Dutch Bros
Wall Street analysts see big gains ahead for coffee chain Dutch Bros. There are 12 buy ratings and four strong buy ratings currently on the stock, and the average price target is $81. That's well above the current stock price, which is hovering around $56 per share.
Analysts are right to be optimistic. Dutch Bros' revenue surged 28% year over year in the second quarter, driven by new store openings and a 6.1% rise in same-store sales. Dutch Bros may be benefiting from the struggles at coffee giant Starbucks. Starbucks reported a 2% same-store sales decline in its latest quarter as it attempts a revival spearheaded by CEO Brian Niccol.
Despite an uncertain economy, Dutch Bros is winning with consumers. With plenty of room for new locations, revenue and earnings can move much higher in the years ahead.
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Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks and TJX Companies. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Consumer Goods Buys That Wall Street Loves

Key Points
Dutch Bros expects to double store count in five years.
It sees a future opportunity to increase store count sevenfold.
It's scaling profitably.
Coffee chain superstar Dutch Bros (NYSE: BROS) has been reporting impressive growth, and its stock has reflected that over the past few years. However, this year it's taking a bit of a breather, trailing the market and up only 1% year-to-date on October 20.
But there are many reasons to believe it can bounce back and deliver spectacular gains for investors over the next five years. This is one of them.
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A Dutch Bros store on every block?
Dutch Bros is a fairly small player in coffee chains, with just over 1,000 stores in the U.S. That's a drop in the bucket compared to leader Starbucks, which operates more than 41,000 global stores, including 17,000 in the U.S. alone. But things have been going so splendidly that management recently said it envisions eventually having 7,000 stores, with a concrete goal of operating 2,029 stores by the year 2029, or doubling the store count in four years.
Doubling store count that quickly should have the effect of more than doubling sales, as comparable sales should keep increasing in addition to the revenue from new stores.
The company has been scaling profitably, with positive and growing net income, and free cash flow is turning positive as sales are increasing enough to cover capital expenditures on new store development and have some cash left over.
As Dutch Bros continues to scale with new stores over the next five years, expect the stock to follow.
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Before you buy stock in Dutch Bros, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dutch Bros wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Jennifer Saibil has positions in Dutch Bros. The Motley Fool has positions in and recommends Starbucks. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: Dutch Bros Stock Could Skyrocket in the Next 5 Years. Here's 1 Reason Why.

Dutch Bros Inc. BROS is placing increasing emphasis on profitability discipline as operating efficiency becomes a defining feature of its next growth phase. In the second quarter of 2025, the company reported adjusted EBITDA of $89 million, representing a 37% year-over-year increase and a meaningful outperformance relative to 28% revenue growth. Management credited the improvement to lower input costs and better labor leverage across its rapidly expanding shop base.
During the second quarter, company-operated shop contribution margins reached 31.1%, up 30 basis points (bps) from the prior year, supported by dairy cost relief and a 60-basis-point reduction in labor expenses as a percentage of revenues. BROS’ improved scheduling model and throughput dashboards helped optimize staffing levels, while build-to-suit lease models reduced capital requirements. Beverage, food and packaging costs fell 20 bps year over year to 25.3%.
While second-quarter results benefited from favorable commodity trends, management signaled that the cost environment could normalize in the back half of 2025. Dutch Bros expects beverage and food costs to rise toward 26% of revenues as coffee tariffs and input inflation offset dairy tailwinds. The company also anticipates higher preopening expenses tied to its 160-shop expansion plan, which could temporarily pressure margins.
Looking ahead, Dutch Bros guided to third-quarter shop contribution margins of roughly 28.5%, implying modest sequential compression as commodity benefits wane. Still, management pointed to its improving capital structure — including a 15% sequential decline in average CapEx per shop and a recently refinanced $650 million credit facility — as enablers of more sustainable profitability.
Despite near-term input cost headwinds, Dutch Bros framed its margin trajectory as structurally improving. The company’s focus on labor efficiency, supply-chain optimization and capital-light development suggests a business model increasingly geared toward consistent, high-return growth. While rising coffee costs may temper near-term gains, Dutch Bros’ cost discipline signals the foundation of a more durable margin framework in the years ahead.
BROS’ Stock Price Performance, Valuation & Estimates
Shares of Dutch Bros have declined 6.7% so far this year compared with the industry’s fall of 10.8%. In the same time frame, other industry players like Starbucks Corporation SBUX, Sweetgreen, Inc. SG and Chipotle Mexican Grill, Inc. CMG have declined 14%, 76.5% and 34%, respectively.
BROS YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, BROS trades at a forward price-to-sales (P/S) multiple of 4.24, above the industry’s average of 3.35. Conversely, industry players, such as Starbucks, Sweetgreen and Chipotle, have P/S multiples of 2.28, 1.09 and 4.01, respectively.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BROS’ 2025 earnings per share has remained unchanged at 68 cents in the past 60 days.
Image Source: Zacks Investment Research
The company is likely to report strong earnings, with projections indicating a 38.8% rise in 2025. Conversely, industry players like Sweetgreen and Chipotle are likely to witness an increase of 10.1% and 7.1%, year over year, respectively, in 2025 earnings. Meanwhile, Starbucks' 2025 earnings are likely to witness a fall of 34.4%, year over year.
BROS stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dutch Bros Tightens Cost Controls: Are Margin Gains Sustainable?

Key Points
Consumer-facing companies are struggling with foot traffic and pushback on price increases.
Dutch Bros has built a blueprint for success with small stores, great products, and friendly staff.
Starbucks is in prove-it mode, but the stock could still be a buy for long-term investors.
It's been a challenging year for restaurants, as consumers have tightened their spending on discretionary goods and services.
Dutch Bros (NYSE: BROS) has nose-dived over 27% in the last month. Year to date, Dutch Bros and Starbucks (NASDAQ: SBUX) are down 9% and 10.9%, respectively, while the S&P 500 index (SNPINDEX: ^GSPC) has gained 14.2%.
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Here's why these two Fool.com contributors believe that the sell-off in these beverage stocks is a buying opportunity.
Dutch Bros is the growth story Starbucks used to be
Anders Bylund (Dutch Bros): I respect Starbucks to the ends of the Earth, and it's a tempting turnaround story right now. But once the attempted rebound plays out -- for better or worse -- I'm still looking at a mature global business with limited long-term growth prospects.
Dutch Bros is a different beast, at a very different stage of its growth story. It's also more than just a coffee chain.
Sure, the company has been around since 1992, but it shifted into a nationwide expansion mode as recently as 2021. With roughly 1,050 stores in operation so far, it's sort of like buying Starbucks stock in 1996. It's not an exact carbon copy, since Starbucks and others have been building a global coffee-shop market that didn't exist in the early 1990s. The similarity is still striking, though.
I don't have to remind you of the game-changing total returns Starbucks has delivered, right? Well, go ahead and twist my arm:
That's an average annual return of 14.3% for nearly three full decades, including a couple of deep dives along the way. I obviously can't promise that Dutch Bros will copy this stellar growth story exactly, but I like the company's chances.
Dutch Bros brings more than just another brand name to the coffee-chain market:
Its "Broistas" are expected to serve drinks with a friendly attitude, almost always at the drive-through window.
The small coffee shops with minimal dine-in (or drink-in, I suppose) facilities facilitate faster store construction and lower costs of operation -- nobody's staying around after hours to clean the nonexistent sit-down area, for example.
Dutch Bros isn't afraid to expand its menu beyond coffee-based ideas; about 25% of its sales in 2024 came from the hand-mixed Rebel energy drinks, and that category is growing sales much faster than the hot coffee lineup.
So I can't promise a three-decade victory lap with fantastic investor returns. Even the most promising growth stories can stumble over the years. But I do like Dutch Bros' chances to become the next Starbucks, while the Seattle chain itself can only hope to regain and defend its established coffee king title. As a longtime Rule Breaker, I'd much rather invest in Dutch Bros' exciting growth story in 2025.
Starbucks has fallen far enough
Daniel Foelber: If you were to have closed your eyes six years ago and opened them up today, you'd find Starbucks down slightly while the S&P 500 has more than doubled with a 128.5% gain. The poor performance in Starbucks' stock price highlights the opportunity cost of investing in a company that fails to deliver on promises.
Starbucks' issues have evolved from a few bullet points to a comprehensive list. The company has failed to significantly expand its international business, particularly in China. For years, it has heavily relied on price increases to drive growth, which has run its course. And now, Starbucks is struggling to grow sales volumes as customers resist price increases.
The Starbucks Rewards program, paired with mobile order and pay, used to be a differentiating factor. But the competition has caught up. And Starbucks' somewhat sterile stores have made the customer experience more transactional, which doesn't bode well when customers are already spread thin with cost-of-living inflation.
As a result, Starbucks' margins are under pressure, growth is stagnating, and the company is resorting to big ideas to turn the business around.
One of those big ideas was to hire the former CEO of Chipotle Mexican Grill, Brian Niccol, a little over a year ago. Niccol had a lot of success at Yum! Brands through Pizza Hut and Taco Bell before moving to Chipotle.
But the deal came at a high cost, as Niccol is one of the highest-paid CEOs among S&P 500 companies. In July, Fortune ran a piece stating that Niccol is earning 6,666 times more than the median employee at Starbucks. That's not exactly a good look in any context, but especially when the stock is performing poorly.
On Sept. 25, Niccol published a letter discussing key updates in his Back to Starbucks plan. Starbucks now expects to end fiscal 2025 with a 1% decline in North American stores, with renovations at 1,000 existing stores over the next 12 months, and the elimination of 900 nonretail partner roles, as well as closing open positions.
The move is a clear signal that Starbucks is no longer in growth mode. It is trying to find its footing and improve the experience by focusing on boosting the quality of its stores rather than increasing their quantity.
I think the move is exactly what Starbucks needs right now. But the negative reaction in Starbucks' stock price is no surprise. Investors are tired of the company being in turnaround mode. It's understandable that some long-term investors are even reconsidering Starbucks' role in their portfolios.
Despite all the challenges, Starbucks is a buy for investors who believe its turnaround will eventually pay off. The brand remains strong, and it would be a mistake to underestimate the value of Starbucks' global recognition. In the meantime, the company just raised its dividend for the 15th consecutive year -- boosting the yield to 3.1%.
Overall, I view Starbucks as a good buy because the company is openly saying its existing strategy needs a tune-up. Even if improvements take time, holding the stock will likely generate a substantial amount of passive income.
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Anders Bylund has no position in any of the stocks mentioned. Daniel Foelber has positions in Chipotle Mexican Grill and Starbucks and has the following options: short October 2025 $40 puts on Chipotle Mexican Grill, short October 2025 $42 calls on Chipotle Mexican Grill, and short October 2025 $85 calls on Starbucks. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Starbucks. The Motley Fool recommends Dutch Bros and recommends the following options: short December 2025 $45 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Better Buy: Dutch Bros vs. Starbucks

Investors in Dutch Bros Inc (Symbol: BROS) saw new options become available today, for the November 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the BROS options chain for the new November 28th contracts and identified one put and one call contract of particular interest.
The put contract at the $49.00 strike price has a current bid of $4.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $49.00, but will also collect the premium, putting the cost basis of the shares at $45.00 (before broker commissions). To an investor already interested in purchasing shares of BROS, that could represent an attractive alternative to paying $49.82/share today.
Because the $49.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 60%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 8.16% return on the cash commitment, or 59.54% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Dutch Bros Inc, and highlighting in green where the $49.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $52.00 strike price has a current bid of $4.40. If an investor was to purchase shares of BROS stock at the current price level of $49.82/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $52.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 13.21% if the stock gets called away at the November 28th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if BROS shares really soar, which is why looking at the trailing twelve month trading history for Dutch Bros Inc, as well as studying the business fundamentals becomes important. Below is a chart showing BROS's trailing twelve month trading history, with the $52.00 strike highlighted in red:
Considering the fact that the $52.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 48%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 8.83% boost of extra return to the investor, or 64.42% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 71%, while the implied volatility in the call contract example is 72%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $49.82) to be 65%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dutch Bros Inc.

Price history and volume

Shares 360

Investment risk — medium

Investment potential — high

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