Dutch Bros Inc. (BROS): Among the High Growth Restaurant Stocks for 2025

We recently compiled a list of the 10 High Growth Restaurant Stocks For 2025. In this article, we are going to take a look at where Dutch Bros Inc. (NYSE:BROS) stands against the other high growth restaurant stocks.

Morgan Stanley recently published a report on the restaurant industry, suggesting that the tough environment that the industry is currently facing may ease out in 2025, though only modestly. Restaurants will have to continue working on providing value meals to consumers who continue to struggle to balance their income and expenses.

A balanced job market could help keep labor costs steady. However, a political campaign against immigration could be a potential headwind for the industry. A growing emphasis on robotics to improve efficiency and customer service could also play a key role in the industry’s development this year, though it is too early to determine the financial implications of these moves.

We decided to shortlist a few stocks that we believe could benefit from an improving industry environment in 2025. To come up with the list of 10 restaurant stocks with a high growth rate, we only considered stocks that have grown by more than 15% in the last 5 years or since IPO and have a market cap of at least $1 billion.

A closeup of a customer tasting a freshly-made cold brew coffee product from the company’s shop.

Dutch Bros Inc. (NYSE:BROS)

Dutch Bros Inc. runs and operates a drive-thru shop chain that operates in franchising, company-oriented shops, and other segments. It delivers through online channels under Dutch Bros and company-operated shops in the U.S.

A 42% annual sales growth rate is impressive even for a company that just went to IPO less than 4 years ago. This is also the reason for the high valuation that the company enjoys at a PE of 207. Apart from serving high-quality food, the restaurant is attractive as a business because of its innovation, including mobile ordering and programs like Dutch Rewards.

Earlier this month, Baird upgraded the stock from Neutral to Outperform. Analysts were conscious of the stock’s 62% returns in 6 months but still believe an outperformance over the next half year or so is possible.

Overall BROS ranks 2nd on our list of the high growth restaurant stocks for 2025. While we acknowledge the potential of BROS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as BROS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.