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Dutch Bros Falls 11% in January as Consumer Worries Weigh on High-Multiple Stock

Recent price-target moves from major brokers signal cautious optimism despite valuation risk.

Overview

  • Shares declined 11% in January, according to S&P Global Market Intelligence, with no company-specific negative news cited.
  • Market participants pointed to concerns about U.S. consumer strength as a key driver of the recent weakness.
  • Morgan Stanley trimmed its price target to $82 from $84 on January 20 and kept an Overweight rating, following sector-outlook updates.
  • Barclays raised its target to $76 with an Overweight rating on January 7, and TD Cowen reiterated Buy at $73 on January 14 while endorsing the Clutch Coffee acquisition for Southeast expansion.
  • Despite valuation concerns, Dutch Bros reported 25% year-over-year net sales growth and $27.3 million in Q3 2025 net income, and it continues to scale beyond 1,000 shops with goals of 2,029 by 2029 and a long-term vision of 7,000.