Dutch Bros trades at a P/E ratio of 58, more than double the S&P 500's 26, though it was about 100 at the start of the year and rose to about 110 in late June. Its three-year median P/E is 141, and the shares gained 64.5% over the three years ended Oct. 16, trailing the S&P 500's 84.5% total return. The company opened 48 locations in the June quarter, and second-quarter same-store sales grew 5.8%, with higher traffic contributing 1.7 percentage points, marking 13 straight quarters of comparable sales growth. The author says the current multiple is more reasonable than earlier levels and that the P/E alone should not keep investors away, given the growth opportunity.
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