Dutch Bros shares have risen 14% to $72.10 over the past six months, outperforming the S&P 500 by 6.3 percentage points. The coffee chain has posted exceptional same-store sales growth averaging 5.8% over the last two years, and its free cash flow margin expanded by 2.8 percentage points to 5.2% over the trailing twelve months. However, the company's five-year average return on invested capital was negative 6.9%, indicating that previous growth initiatives lost money. The stock now trades at 71.9 times forward earnings.
Dutch Bros IncStock up 14% but past growth losses and high valuation raise caution; mixed signals.