Dutch Bros stock may underperform in near term

Dutch Bros stock has seen significant fluctuations, peaking at over $85 in February 2024 before dropping nearly one-third of its value. The coffee chain has expanded rapidly, reaching 1,000 locations, up from 471 at its 2021 IPO. In 2024, Dutch Bros reported $1.3 billion in revenue, a 32% increase from the previous year, with net income rising to $35 million. The company expects revenue to grow 22% in 2025, but this marks a slowdown compared to past growth rates. Despite its expansion, Dutch Bros faces challenges with high valuation metrics, including a forward price-to-earnings ratio of 101. Analysts suggest the stock may underperform in the near term, as its price appears ahead of its fundamentals.