Dutch Bros, BJ's, and El Pollo Loco Stocks Surge Dramatically, Key Information You Should Be Aware Of

Recent Developments in the Restaurant Sector

Shares of several restaurant companies surged in the afternoon after Bernstein analysts pointed to a possible industry rebound in 2026. The firm expects a slow recovery in customer traffic following a difficult 2025, which saw consumer confidence decline.

Multiple elements could help boost demand, such as a forthcoming Tax Bill and the Soccer World Cup being held in the United States, with positive effects potentially emerging as early as spring. This encouraging forecast is further supported by restaurant stock valuations reaching their lowest point in a decade, indicating room for growth if consumer spending picks up. After a stretch when many households reduced dining out due to inflation, larger tax refunds may also help revive interest in casual dining.

Market reactions to news can be exaggerated, and sharp declines in stock prices sometimes create attractive entry points for investors seeking quality companies.

The following stocks were notably affected:

• Dutch Bros (NYSE:BROS): The fast-food chain's stock climbed 5.8%. Wondering if this is a good time to invest in Dutch Bros?
• BJ's Restaurants (NASDAQ:BJRI): Shares of this sit-down dining company rose 4.5%. Considering an investment in BJ's?
• El Pollo Loco (NASDAQ:LOCO): The fast-food chain saw its stock increase by 2.8%. Is now the right moment to buy El Pollo Loco?

Spotlight on Dutch Bros (BROS)

Over the past year, Dutch Bros stock has experienced significant volatility, with 29 instances of price swings exceeding 5%. Today's uptick suggests the market views the latest news as important, though not transformative for the company's overall outlook.

The last major movement occurred 19 days ago, when Dutch Bros shares jumped 4.3% after KeyBanc began coverage with an 'Overweight' rating and the company launched its first Los Angeles location. Analyst Eric Gonzalez from KeyBanc set a target price of $77.00, indicating expectations for the stock to outperform the average of those he covers.

Since the start of the year, Dutch Bros has gained 1.7%. However, at $63.24 per share, it remains 25.9% below its 52-week peak of $85.37 reached in February 2025. An initial $1,000 investment in Dutch Bros at its IPO in September 2021 would now be valued at $1,724.

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