Dutch Bros entered Wall Street with a boom back in September when it IPO’d on the NYSE. On Monday, Dutch Bros (BROS) was initiated by five restaurant-sell side securities firms, with price targets from $47 to $60. Their core geographic base now is Oregon, Southern WA, Northern CA, and spreading now slowly into the Mountain states. One of the IPO bookrunners no doubt suggested a market penetration study, and a 4000 unit penetration potential was published in the S-1. Finding that many drive-thru sites will be an issue: Starbucks has been reverting to this very store type, and Dunkin is of course penetrating as quickly as it can via the traditional franchise model. Dunkin operators need to be aware of this competition for sites as a primary risk, and that for guests as a secondary risk. We also noted that Caribou Coffee, owned by JAB Holdings, and now grouped with Panera Bread and Einstein Bros. Bagels, is launching a concerted national franchising program with an eye on dramatically increasing its footprint throughout the Mid- and Southwest.