Company Overview

Dutch Bros Inc. is one of the fastest-growing brands in the restaurant and foodservice industry in the United States. Its product offering includes beverages such as coffee, lemonade & energy drinks through its 470 shops across the United States.

Initial Public Offering

The company launched its IPO on the New York Stock Exchange on September 15, 2021, under the ticker BROS and had sold approximately 21.05 million shares at USD 23 each. We had covered this IPO in our ‘Kalkine IPO Report’ on the September 14, 2021 and concluded that this IPO was Attractive given its sound fundamentals, solid performance throughout the pandemic and aggressive growth outlook.

5-Minute Price Chart (as on September 16, 2021). Analysis by Kalkine Group

Conclusion

Investors who have invested into this IPO can consider ‘Exiting’ from their position at the closing price of USD 48 as on September 16,2021 given:

• Decent gains: The stock has moved up more than 108% from its IPO price of USD 23/share.
• Resurgence in the Delta Variant cases: Due to the recent increase in the Delta virus cases in the United States, people are refraining from going outside. Hence it could impact the product sales of the company.
• Increase in raw material cost: Coffee prices have shot up 44.7% on a YTD basis. Hence, the company could witness some raw material cost pressure on its margin profile, which may dampen its profitability in the near term.
  
  *The reference data in this report has been partly sourced from Refinitiv.

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