Dutch Bros is the favorite restaurant stock at UBS

MSN
2026.06.03 17:49
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UBS named Dutch Bros (BROS) its top pick in the restaurant sector, citing accelerating traffic and strong new store productivity. Analyst Dennis Geiger highlighted an attractive valuation disconnect, with shares trading at 25.5x 2026 EV/EBITDA versus a 31x three-year average. UBS forecasts 5.6% same-store sales growth for this year, driven by food rollouts and digital gains. The firm set a price target of $85, suggesting potential upside to full-year expectations.