several names in the sector. So joining us now is Andrew Charles from TD Cowan. Andrew, it's great to have you on.Let's start right there. Why are you bringing price targets down on some of these chains. Great to be with you again, Morgan.So look, at the risk of sounding old, unfortunately, we're looking at Gen Z as a a new pocket of softness. You know, restaurant investors have heard about softness with lower income consumers as well as Hispanic consumers. We're flagging the most incremental and newest rig ...

Core Insights - Dutch Bros Inc. (BROS) is intensifying its focus on customer loyalty amidst increasing competition in the beverage category, with an expected same-shop sales growth of approximately 4.5% in 2025 driven by the Dutch Rewards program [1][8] Customer Loyalty and Engagement - In Q2 2025, Dutch Rewards accounted for 72% of system transactions, a 5 percentage point increase from the previous year, attributed to improved segmentation and personalized offers [2][8] - The program has facilitated the adoption of new initiatives, with order ahead transactions representing 11.5% and a food pilot in 64 shops contributing to incremental ticket and transaction growth, particularly among Rewards members [3][8] Technological Enhancements - The company is enhancing its operational capabilities with new functionalities, including improved dashboards for shop-level teams and ongoing app improvements to streamline the mobile ordering experience [4] Strategic Positioning - Management identifies significant growth potential in the morning segment, where mobile ordering and food options are expected to increase transaction frequency, positioning loyalty as a key driver of growth rather than merely a marketing tool [5] Competitive Landscape - Starbucks Corporation (SBUX) exemplifies a mature loyalty program with 34 million active Rewards members, focusing on enhancing personalization and engagement through upcoming app upgrades in 2026 [6] - Sweetgreen, Inc. (SG) is undergoing a loyalty program transition that initially impacted performance but is expected to yield positive results as active membership and frequency improve through personalized offers [7]

Group 1 - Dutch Bros is a promising growth stock with a unique blend of high sales growth and positive cash generation, making it an attractive investment opportunity as its stock has recently declined by 30% [1] - The company has rapidly expanded its store count to over 1,000 locations since 2021, focusing on iced and blended beverages, and has developed a loyal customer base [2][3] - Despite the increase in store count, the number of shares outstanding has nearly tripled, leading to significant shareholder dilution; however, the company has recently reached a tipping point where cash from operations exceeds capital expenditures [4][5] Group 2 - Dutch Bros plans to double its store count to 2,029 locations by 2029, with a long-term addressable market of over 7,000 stores, indicating substantial growth potential [6] - The company is now funding its expansion plans through its own cash flows, which should help mitigate further dilution of shareholder value [8] - Dutch Bros generated $272 million in cash from operations while spending $200 million on capital expenditures, resulting in $73 million in free cash flow [5]

Core Insights - Dutch Bros (NYSE: BROS) has experienced significant volatility since its public trading debut, with shares increasing by 62% over the past year but still 39% below their peak in February [1][3] - The company is valued at $8.6 billion and operates primarily drive-thru locations across 19 states, with plans to expand to 2,029 locations by 2029, potentially doubling its current footprint [3][7] - Despite its growth potential, the stock's high price-to-earnings ratio of 145.7 suggests that expectations may be overly optimistic, and the company lacks the competitive advantages of larger players like Starbucks [4][5][6] Growth Potential - Dutch Bros is focused on rapid expansion, aiming to significantly increase its store count, which could lead to higher sales and earnings over time [3][7] - The company is seen as an interesting growth story, but achieving a fivefold increase in stock value by 2030 is considered unlikely due to its current valuation and competitive landscape [4][6] Competitive Landscape - The competitive environment in the retail and restaurant sectors is challenging, and Dutch Bros may struggle to establish sustainable competitive advantages necessary for long-term success [5][6] - Investors are advised to remain optimistic but should temper expectations regarding potential returns, as a 400% gain by 2030 is deemed unrealistic [6][7]

Core Insights - The consumer discretionary sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key indicator for identifying oversold conditions, typically below 30 [1] Company Summaries - **Dutch Bros Inc (NYSE:BROS)**: - RSI Value: 27.5 - Recent stock performance: Fell 1% to close at $52.57 - Analyst rating: Outperform with a price target of $85; stock has dropped approximately 28% in the past month, with a 52-week low of $30.49 [8] - **Goodyear Tire & Rubber Co (NASDAQ:GT)**: - RSI Value: 16.8 - Recent stock performance: Fell 4.6% to close at $7.50 - Analyst rating: Neutral with a price target of $10; stock has decreased around 11% in the last five days, with a 52-week low of $7.43 [8] - **Deckers Outdoor Corp (NYSE:DECK)**: - RSI Value: 27.7 - Recent stock performance: Fell 2.4% to close at $103.28 - Analyst rating: Underperform with a price target of $100; stock has declined about 16% over the past month, with a 52-week low of $93.72 [8]

Core Viewpoint - Dutch Bros (BROS) has experienced a bearish price trend, losing 9.4% over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting that bulls may be gaining control [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buying interest emerges after reaching a new low [4][5]. - The effectiveness of the hammer pattern is contingent on its placement on the chart and should be used alongside other bullish indicators [6]. Fundamental Analysis - There is a strong consensus among Wall Street analysts to raise earnings estimates for Dutch Bros, which supports the bullish outlook for the stock [2][7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 1.5%, indicating analysts expect better earnings than previously predicted [8]. - Dutch Bros holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10].

Amgen (AMGN) - Amgen's stock has experienced a 4% decline over the past week, with a current rating of 72% Strong Sell according to Barchart Technical Opinion [1] - The stock has shown a 3-7-D sequence over the past 10 weeks, indicating three up weeks and seven down weeks, which is a rare quantitative signal [6] - In the fourth week of this sequence, the probability of upside success is 65.5%, significantly higher than the baseline probability of 48.8% [7] - The 50th-percentile price under the 3-7-D pathway is projected to be around $277.50, suggesting a potential bullish trade with a 275/280 bull call spread expiring on October 24 [8] Enphase Energy (ENPH) - Enphase Energy's stock has seen a short interest of approximately 20% of its float, indicating potential for a short squeeze [9] - The stock has printed a 6-4-D sequence, with six up weeks and four down weeks, resulting in an overall negative trajectory despite recent gains [10] - Under the 6-4-D pathway, the odds of upside success are higher than normal, with a recommended trade being a 37/40 bull call spread expiring on October 24, which could yield a payout of nearly 142% [12] Dutch Bros (BROS) - Dutch Bros has shown a modest gain of 1.37% since the start of the year, but its stock performance has been highly volatile [13] - The stock is rated as an 88% Strong Sell by Barchart Technical Opinion, indicating high risk [14] - Dutch Bros has also printed a 3-7-D sequence, which has historically shown a 100% upside probability in certain weeks, although this should be viewed cautiously due to the small sample size [15] - A potential trade opportunity is identified with a 55/58 bull call spread expiring on October 31, which could yield a maximum payout of nearly 161% [16]

Group 1: Dutch Bros - Dutch Bros (NYSE: BROS) is recommended for purchase now and again in the $40s by Jim Cramer [1] - RBC Capital analyst Logan Reich maintains an Outperform rating on Dutch Bros with a price target of $85 [1] - Dutch Bros shares fell 1.4% to settle at $53.36 [5] Group 2: American Bitcoin Corp - Jim Cramer describes American Bitcoin Corp (NASDAQ: ABTC) as a "total spec" [1] - American Bitcoin recently appointed KPMG as its new auditor [1] - American Bitcoin shares fell 4.3% to close at $6.69 [5] Group 3: Recursion Pharmaceuticals - Recursion Pharmaceuticals (NASDAQ: RXRX) is viewed negatively, with Cramer stating a need for improvement before investment [2] - The company reported second-quarter revenue of $19.22 million, exceeding analyst estimates of $16.23 million [2] - Recursion reported a second-quarter loss of 41 cents per share, missing forecasts of a loss of 34 cents per share [2] - Recursion Pharmaceuticals shares declined 5.1% to settle at $4.63 [5] Group 4: Republic Services - Cramer indicates a need for a bounce in Republic Services, Inc. (NYSE: RSG) [3] - Barclays analyst William Grippin initiated coverage on Republic Services with an Equal-Weight rating and a price target of $240 [3] - Republic Services shares fell 0.2% to close at $226.86 [5]

Group 1: Dutch Bros - Dutch Bros (NYSE: BROS) is recommended for purchase now and again in the $40s by Jim Cramer [1] - RBC Capital analyst Logan Reich maintains an Outperform rating on Dutch Bros with a price target of $85 [1] - Dutch Bros shares fell 1.4% to settle at $53.36 [5] Group 2: American Bitcoin Corp - American Bitcoin Corp (NASDAQ: ABTC) is considered a "total spec" by Jim Cramer [1] - American Bitcoin recently appointed KPMG as its new auditor [1] - American Bitcoin shares fell 4.3% to close at $6.69 [5] Group 3: Recursion Pharmaceuticals - Recursion Pharmaceuticals (NASDAQ: RXRX) is viewed negatively, with Cramer stating a need for improvement before investment [2] - The company reported second-quarter revenue of $19.22 million, exceeding analyst estimates of $16.23 million [2] - Recursion reported a second-quarter loss of 41 cents per share, missing forecasts of a loss of 34 cents per share [2] - Recursion Pharmaceuticals shares declined 5.1% to settle at $4.63 [5] Group 4: Republic Services - Republic Services, Inc. (NYSE: RSG) requires a bounce according to Jim Cramer [3] - Barclays analyst William Grippin initiated coverage on Republic Services with an Equal-Weight rating and a price target of $240 [3] - Republic Services shares fell 0.2% to close at $226.86 [5]

Core Insights - Dutch Bros is emerging as a strong competitor in the coffee industry, challenging established players like Starbucks with its unique business model and growth strategy [1][2][13] Company Overview - Dutch Bros has positioned itself as a vibrant coffee destination, primarily focusing on drive-thru service, with 80% of its market catering to to-go orders [4][5] - The company is in a hyper-expansion phase, strategically opening new stores while considering current market trends, which gives it an advantage over larger, established chains [5][8] Market Dynamics - The cold beverage market is growing five times faster than the hot drink segment, with cold drinks accounting for 87% of Dutch Bros' sales, and 94% among Gen-Z customers [6] - Dutch Bros is continuously innovating its beverage offerings and experimenting with its food menu to drive sales [6] Financial Performance - In Q2 2025, Dutch Bros reported a 28% year-over-year revenue increase, with same-shop sales rising by 6.1% [10] - Company-operated stores saw a gross margin improvement of 60 basis points to 24.3%, and adjusted net income increased from $31.2 million to $45.5 million [10][11] Expansion Plans - As of Q2 2025, Dutch Bros operated 1,043 stores across 19 states, planning to open at least 160 new stores this year and aiming for a total of 2,029 stores by 2029 [12] - The long-term vision includes reaching 7,000 stores, which is significantly lower than Starbucks' nearly 42,000 stores worldwide [12][13] Leadership and Management - The company has revamped its leadership by bringing in a new CEO and experienced executives from Starbucks, which is expected to enhance its scalability and operational efficiency [9]