Dutch Bros Stock Just Flashed a Bullish Signal – Here’s Why

Dutch Bros stock is brewing up something bullish. While the broader market stumbles, this caffeinated contender is showing surprising strength.

The Green Light Nobody Saw Coming

Amidst the sea of red in Q3 2025 earnings reports, Dutch Bros pulled off a cappuccino miracle – same-store sales growth that actually impressed analysts. Not bad for a company that was supposed to be crushed by the 'Starbucks Recession'.

Secret Sauce: Crypto Bros Love Cold Brew

Turns out Dutch Bros' tech-forward payment system and late-night drive-thrus became the unexpected hangout for crypto traders pulling all-nighters during the recent altcoin rally. Who knew cold brew and candlestick charts were such a perfect pairing?

The Bottom Line

While Wall Street was busy shorting 'overpriced coffee', Dutch Bros quietly built a cult following that's now showing up in the numbers. Of course, in today's market, any good news probably means the stock's already overbought – but that's a problem for Monday's opening bell.

Image source: Getty Images.

Gen Z loves Dutch Bros

Dutch Bros registration filing at the time of its IPO disclosed that only 23% of its customers were over the age of 36 and 67% were female. Brands that connect with Gen Z are in a great position to drive long-term growth, and Dutch Bros has tailored its strategy to win their loyalty.

It offers competitive pricing for its "handcrafted" beverages, which includes colorful names like Cotton Candy and Bubblegum Rebel, which appeal to a younger crowd. Its momentum with this young demographic could explain whyis having trouble growing sales. In the first quarter, posted systemwide same-store sales for Dutch Bros increased by 4.7% year over year, marking the ninth consecutive quarter of positive COMP sales growth.

Starbucks has delivered six consecutive quarters of declining comp sales, with North America comps down 2% year over year in the most recent quarter. This represents an impressive market share gain for Dutch Bros, which doesn't have nearly the geographic diversity that Starbucks has. Dutch Bros has just over 1,000 shops open in 18 states but plans to have more than 2,000 by 2029.

Is the stock a buy right now?

It's another good sign for Dutch Bros thatventure into the specialty beverage market with CosMc's failed. Dutch Bros has tremendous brand power, excellent management, and brilliant marketing.

The stock is still worth buying. It was undervalued over a year ago, trading at a low price-to-sales multiple, which led to the rerating by investors. It is now trading at a more appropriate sales multiple for its growth potential. As it continues to grow, margins will likely expand and earnings per share will likely take off. This looks like a great long-term investment.