Restaurant stocks: Starbucks and Dutch Bros. are recommended at BofA after sell-offs
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Bank of America singles out Starbucks (NASDAQ:SBUX) and Dutch Bros. Inc. (NYSE:BROS) as top picks in the restaurant sector amid the wave of selling pressure.
Analyst Sara Senatore says for BROS the firm sees upside to annual unit volume and opportunity for meaningful G&A leverage. "We think the IPO sell-off likely places the companyâs exceptional unit economics and a long growth runway at increasingly attractive valuations," she writes.

Looking at SBUX, the firm forecasts upside to consensus U.S. comparable sales marks due to strong app use and Starbucks Rewards membership trends. While near terms concerns persist around China and labor investments, Senatore says the view is that longer term investors should consider the sell-off a buying opportunity.
BofA keeps Buy ratings on both Starbucks (SBUX) and Dutch Bros. (BROS).
Shares of SBUX are down 1.55% premarket to $96.58 after hitting a 52-week low yesterday of $94.41. BROS is off 2.66% to $44.30 in the early session.
Compare growth, valuation and momentum marks on SBUX and BROS.