Dutch Bros Serves Up Piping Hot Growth. Is the Stock a Buy?

Dutch Bros (NYSE: BROS) delivered another quarter of strong growth, finally reaching $1 billion in revenue on a trailing 12-month basis, but inflation is taking a toll on profit margins and on its lower-income customers even as it forces the drive-thru coffee chain to continuously raise prices. Although management raised its full-year revenue guidance, investors still need to take the long view when buying its stock because almost all of Dutch Bros' gains are coming from new store openings. It indicates Dutch Bros' business model can be successfully replicated as it expands its footprint across the country.