Starbucks just got a lot of attention from Wall Street

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Starbucks just got a lot of attention from Wall Street

Starbucks SBUX and Dunkin' may want to keep an eye on coffee chain Dutch Bros. BROS The Oregon-based company made its public debut back in September and is getting a lot of buzz from both Main Street and Wall Street.

Shares of the company have increased nearly 56% since its debut, demonstrating what one analyst said is a product that people clearly love. Ethan Chernofsky, CMO of the data intelligence platform Placer.ai, told Yahoo Finance LIVE that beyond seeing visits going up over time, we see visits per location number going up, which really indicates loyalty. He added: I come once I like it, I keep on coming back. Monthly visits to Dutch Bros. locations in August and September were both up over a whopping 100% each month compared to 2019, according to a report from Placer.ai. Chernofsky believes Dutch Bros. disciplined approach is helping to drive its growth.

They're really focused on getting the product out in a really efficient way, drive-thru and a really positive service model that enables them to grow really quickly in a really positive manner, he added.

In an interview with Yahoo Finance, Joth Ricci emphasized that approach. As of right now, the coffee chain has 471 locations.

From the beginning, Ricci was a very disciplined growth company. The company intends to make its way to the eastern seaboard in time with the intention to be somewhere on the east coast in the next maybe three, four years. Chernofsky is however a long way from becoming a real competitor to Starbucks, according to Dutch Bros. With locations around the globe, the coffee giant's name has become synonymous with upscale coffee drinking and lifestyle choices.

The nature of how many locations Starbucks has — the reach they have in the suburbs and in cities, their ability to go really cross channel in the coffee space, with drive-thru, pickup, and sit down experiences across major cities and suburbs, the analyst noted.

With Starbucks' earnings on deck for next week and in the prime of Pumpkin Spice Latte season, there's lots of optimism for the coffee chain.

BofA recently reinstated coverage of Starbucks with a Buy rating and a price objective of $135 dollars per share, with analyst Sara Senatore citing Starbucks loyalty program as a major factor of growth for the Seattle-based chain. Separately, BTIG analyst Peter Saleh reiterated a Buy rating, along with a price target of $130.

However, BTIG lowered its fourth quarter 2021 estimates given the surge in Delta variant and resulting impact in China and Japan this summer. However, it expects America's margins to benefit with an increased drive-thru delivery presence.

Chernofsky said seasonal items like the Pumpkin Spice Latte drive growth as well, noting a big boost in foot traffic upon their debut.

It shows is just how powerful a position Starbucks plays within the coffee sector, but also within the wider zeitgeist in the sense that when they launch something, people are excited and willing to try it. Shares of Starbucks are up 7.1 percent year to date.

Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at BrookeDiPalma or email her at bdipalma@yahoofinance.com.