Row 17234

Content Data

This page contains data entry 17234 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

Raw Record

{
  "text": "Hello fellow WSB enjoyers, I interrupt your usual programming to write this about a hidden gem stonk from the Beaver State: Dutch Bros (BROS). \n\nDutch Bros is an Oregon-based company where they set up these [little huts ](https://en.wikipedia.org/wiki/Dutch_Bros._Coffee#/media/File:DB_GPDowntownstore.png)and sell both coffee and sugary drinks that Americans are addicted to. There is very little real estate needed, no bathroom, and you best believe the products have a high markup. \n\n  \nDespite expanding rapidly (literally opening 45 stores in like 14 states) Dutch Bros had positive income last quarter, and everything from same-store sales to revenue is way up YoY. This is impressive, as opening new stores in new places could potentially raise revenue while lowering same-store sales because of the legwork it takes to advertise a new brand, but they are managing to profit, increase same-store sales, and enter new markets all at once. \n\nReading the bear case I found a few points people are making against investing in Dutch Bros. Here's why they're all wrong.\n\n  \nAbility to continue expanding: Dutch Bros has plans to open 4000 more stores in the coming years, and they have 800+ open today. I think that this is not only reasonable but they could honestly open even more stores long term. I'm from Oregon, and not only does my little town of 10k have a Dutch Bros but where I currently live, Eugene Oregon, *has 12 stores in a city of 200k*. We have Starbucks (though one of them was just vandalized) as well as small coffee shops, but Dutch Bros still manages to operate 12 stores in a 200k city that mostly consists of broke college kids. I highly doubt they will be able to operate at the same stores per capita in most other areas, but even managing a fraction of this would allow them to open thousands more. \n\n  \nBranding: The article I read raised questions about the moat (or ability to prevent opponents from entering the industry) as well as their ability to raise the brand's profile. While I am a WSV regard and not an expert I think that Dutch Bros is in a position to easily create a strong brand. Not only is Dutch Bros seen as a cool young person brand, they already have a number of aesthetic designs that they sell on products. I couldn't find any on the official store website (wtf guys you're dropping the ball here), but my friend used to work at Dutch Bros and would come over with everything from coffee mugs to shirts (a quick google search will show you some). I am a soft drink fiend and so I haven't been to Dutch Bros in a while, but I'l pretty sure you can buy these in stores. \n\nThe Dutch Bros Logo is straight up good-looking, their drinks have lots of pretty colors, and their drive through is an efficient and cost effective model. Dutch Bros is already a brand with a cult-following in the PNW, and there's no reason this won't be the case across the country. \n\n  \nI'll end with two more bullish points:\n\nThe first is that people are boycotting Starbucks because for Palestine. To be blunt this probably isn't going to stop because it's unclear how Starbucks is really helping Israel in the first place. An article I found from the University of Texas said Starbucks revenues decreased 20k and the other coffee shop had a 25k increase because of this, and if this happens across the country Dutch Bros will get more business, not to mention the loyal customers they may get when the people who start going to Dutch Bros keep going there by force of habit. \n\nThe second is that Dutch Bros has a lot of markets it can expand into. [https://www.dutchbros.com/locations-](https://www.dutchbros.com/locations-) This won't load for me right now but when I looked at it a couple of days ago I saw that DB is still absent from a lot of huge markets. The fact that they can operate without these markets and are still making a profit and rapidly increasing their revenue means that as they start moving into LA and the NorthEast states they'll have room to grow. \\\\\n\n\n\nTLDR: Dutch Bros could be for coffee what Nike is for sports apparel. They are expanding rapidly and making money while doing so. \n\n  \nThis is not investment advice, invest at your own risk. \n\nPositions: 125 shares though I sold a covered call before earnings. I'm planning to add to my position as time goes on. ",
  "label": "r/wallstreetbets",
  "dataType": "post",
  "communityName": "r/wallstreetbets",
  "datetime": "2024-05-20",
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}

Entry Information

• Entry ID: 17234
• Repository: Axioma AXP
• Dataset: arrmlet/reddit_dataset_36
• Total Entries: 100,000