One way to measure the expensiveness or cheapness of a stock is to compare price-to-earnings (P/E) ratios. However, a lower multiple in comparison to other stocks doesn't automatically mean a stock's a buying opportunity. Nor should you necessarily avoid those with a higher multiple.
A higher P/E ratio does mean that investors have higher growth expectations. That's not a bad thing, and if a company can meet or exceed them, you can make money.
Dutch Bros (BROS +2.24%) trades at a P/E ratio of 58. That's more than double the S&P 500 index's P/E ratio of 26. Should Dutch Bros' relatively high multiple turn off investors?
Image source: Getty Images.
When working to answer the question, it's important to look at the company's P/E ratio in historical context. Dutch Bros' shares had an earnings multiple of 100 at the start of the year, and it rose to about 110 in late June. Over the long term, the stock has a three-year median P/E ratio of 141.
Until recently, investors certainly had high growth expectations, and the stock outperformed the market. The shares gained 64.5% for the three years ended on Oct. 16, trailing the S&P 500's 84.5% total return.
$43.82+$0.96 (+2.24%)
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The company's drive-through locations offer coffee, energy drinks, and other beverages (e.g., tea, lemonade, smoothies, and soda). Some locations also offer limited food options. That sounds like an ultra-competitive business, but the company differentiates itself through speed, quality, and customer service.
Dutch Bros appears to have struck a chord with customers, and it continues to grow sales and add locations (48 in the June quarter). Second-quarter same-store sales grew 5.8%, with higher traffic contributing 1.7 percentage points. That made it 13 straight quarters of comps growth.
A P/E ratio of over 100 certainly seems like an inflated valuation. I wouldn't call Dutch Bros a value stock, but its current multiple is much more reasonable.
I wouldn't stay away from the shares based on the current P/E ratio. Given the growth opportunity, long-term investors should strongly consider the stock.
Dutch Bros (BROS +4.13%) is one of the hottest, fastest-growing restaurant chains in the U.S. Although it calls itself a coffee shop chain, it's better known for its sugary beverage concoctions, such as its recent "Creepy Crawler" seasonal drink, which includes gummy worms, and its Rebel energy line.
Although it's growing fast, Dutch Bros stock is down 33% year-to-date. Is that likely to change when it reports earnings on Nov. 4?
Launching across the country Dutch Bros has 1,225 stores as of the end of the third quarter, and it's aiming for at least 185 new openings in 2026. It has a short-term goal of reaching 2,029 stores by 2029 and a long-term goal of getting to 7,000 stores.
Image source: Dutch Bros.
Total sales increased 32% year over year in the second quarter. While much of that was driven by the 48 new store openings in the quarter, the company has also been reporting solid same-store sales growth. It's been positive for the past 13 quarters, and transaction growth has been positive for the past eight quarters, which is important because it means that the growth isn't only coming from higher prices. That implies that more people are coming into stores or coming in more frequently, both of which bode well for the company's future. In the second quarter, same-shop sales increased 5.8% over last year, with transactions up 1.7%.
The market wasn't impressed with that 1.7% number, although company-operated same-shop transactions increased 3.4%. The company originally had a franchise option, but it's only opening company-owned stores at this point. Part of Dutch Bros' success comes from its rigorous standards throughout its portfolio, which it can better manage in its owned stores.
What to expect on Nov. 4 Other reasons Dutch Bros stock is down include its high valuation and worries about its ability to meet its expansion goals. Even at the current P/E ratio of 58, it's not cheap, which is why seemingly small issues can generate a negative market reaction. And in August, it disclosed that it would not be raising its bid on a small chain of salad stores that would have added 65 new stores to its total in one shot.
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Given the stock's disappointing performance so far this year, the third-quarter report could be a high-stakes moment. If it beats Wall Street's expectations of 29.4% sales growth and $0.24 in earnings per share (EPS) and has any other promising news, the stock could easily rise, closing the gap between performance and the stock price. If not, the stock could fall further, although some of the negativity is already priced in.
Management raised full-year guidance from about $2 billion in sales and 5% same-store sales growth at the midpoint to $2.1 billion in sales and 5.5% same-store sales growth at the midpoint, but that wasn't enough to keep the stock from dropping. It may play a more significant role in the third-quarter report if everything else goes well.
Over the long term, Dutch Bros has strong potential as it keeps opening new stores and bringing in more customers.
Dutch Bros (BROS +0.15%) has seen its name recognition grow over the years. Credit goes to the success of its small-format and drive-through locations. In addition to coffee, it sells a long list of customizable drinks. The company's customer service is a big draw.
It's not easy to establish a solid position in the retail coffee industry. However, Dutch Bros has successfully carved out a niche in the market.
While the business is a success, the coffee stock has been wildly volatile. It currently trades 52% below its record high (as of Oct. 15).
Investors should listen to the bulls and the bears. Here's one reason to buy shares and one reason to pause.
Image source: Getty Images.
Reason to buy: Projected store growth offers exciting possibilities
The main reason investors should consider buying the stock is its growth trajectory. As of June 30, there were 1,225 Dutch Bros locations in total. That's up 17% from 12 months ago. Management believes that it has a total addressable market of 7,000 stores. That would be almost six times larger than the current footprint.
The coffee chain has a strong presence in the western and southern parts of the U.S. That still leaves plenty of expansionary runway across the country. In May, for instance, the first Dutch Bros location opened in the Chicago area. New stores, of course, support higher revenue over time.
But each shop is also becoming more productive. Dutch Bros reported same-store sales growth in the last 13 straight quarters. That's a promising indicator at a time when the macroeconomic environment has pressured consumer confidence.
Analysts project the top line will rise 97% from 2025 to 2028. With the stock significantly off its highs, robust growth can be a tailwind for investors.
$41.16+$0.06 (+0.15%)
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Reason to pause: The retail coffee market is crowded
This industry is extremely competitive. Barriers to entry are low, opening up the door to new rivals. And customers have no switching costs; they can spend their money wherever they please with each transaction.
So, it's valid to question if Dutch Bros has a durable moat. Its brand is becoming more well-known, to be fair. Does this drive loyalty over time, though? That's hard to say.
The challenging industry backdrop might give investors pause. There is competition all over the place. Large chains like Starbucks, McDonald's, and Dunkin' have massive footprints that support their scale advantages. Dutch Bros can't go toe-to-toe with them when securing favorable real estate, marketing efforts, or procuring coffee and other key inputs.
There is also pressure coming from direct competitors. Smaller players like 7 Brew and Biggby Coffee operate with similar strategies. Customers can easily start to favor them if they pop up nearby.
Dutch Bros' growth has been impressive, but the company's future success is far from guaranteed.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros and Starbucks. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.
Dutch Bros (BROS -0.44%) is struggling. At least, that's the way it looks when you're checking out its stock chart. The coffee chain's share price is down 33% year-to-date as of Oct. 16. At the same time, Dutch Bros is doing pretty much everything right.
Is the fast-growing coffee stock a good buy right now?
$40.92-$0.18 (-0.44%)
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Brewing up strong results
I'm not kidding about the company's business performance.
Dutch Bros keeps beating analyst expectations across the board in every earnings report, often by a wide margin.
Trailing sales are up 58% over the last three years. The store count increased by 62% to 1,225 locations over the same period. Diluted earnings per share? Up 142%. Free cash flow tripled.
Same-store sales also tick up in almost every report, including a 3.8% year-over-year jump in Q2 2026.
And the founder-led management team has a very specific growth plan. Dutch Bros should have 2,029 stores in the year 2029. Beyond that punny target, the company could reach 7,000 domestic stores before looking for international growth.
Image source: The Motley Fool.
What makes Dutch Bros different
Dutch Bros backs up its strong results and ambitious plans with concrete business advantages.
Customer-friendly baristas are kind of expected at every coffee shop, but an outgoing personality is a written requirement for this company's "broistas." A wide variety of flavoring syrups and toppings lets every customer create their own dream drink. In hot, humid states or seasons, the company sells a ton of energy refreshers and blended freeze coffees -- cold drinks for a warm day.
And the company's focus on the drive-through experience brings another important advantage. The shops don't come with sit-down dining areas that require cleaning and maintenance. Furthermore, the resulting tiny footprint makes the store construction a bit faster and cheaper. The network would expand much more slowly if Dutch Bros insisted on cozy sit-downs in the Starbucks style.
Time to grab a cup of Dutch Bros?
So yes, it's time to buy this stock. Dutch Bros is doing everything right except pleasing the stock market. The business keeps firing on all cylinders, and the market is handing out a 33% discount on a long-term growth story.
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.
Dutch Bros plánuje do roku 2029 překročit hranici 2 000 poboček; tržby ve srovnatelných prodejnách provozovaných společností ve druhém čtvrtletí vzrostly o 8,3 %.
With artificial intelligence (AI) stocks all the rage, growth stories in other parts of the market are often getting overlooked. That certainly appears to be the case with Dutch Bros (BROS -2.02%), as the coffee shop operator has one of the best long-term growth stories in the consumer space, yet the stock has struggled this year. However, it appears to have significant upside in the coming years. With $10,000, you could buy about 260 shares.
Dutch Bros is riding the sweet coffee drink craze made popular by Starbucks (SBUX +1.69%), while adding its own twist with its popular Rebel energy drinks. The concept is popular, as evidenced by strong same-store sales, which rose an impressive 8.3% for company-operated shops in the second quarter. It has also seen a lift by adding hot food items to its shops, which can support it.
Image source: The Motley Fool.
More than anything, though, Dutch Bros is a powerful expansion story. It ended the June quarter with 1,225 locations, of which 888 were company-owned. It plans to open at least 185 new locations this year and have more than 2,000 total shops by 2029. Its long-term goal is to operate around 7,000 shops in the U.S.
The nice thing about Dutch Bros' expansion is that it is happening at a quick but measured pace. Its shops tend to have small footprints with no indoor seating, and serve customers through two drive-thru lanes. This makes them relatively cheap to build out, although they generate strong sales, with average unit volumes (AUVs) and impressive $2.2 million. This allows the company to achieve quick payback periods on its investments and increase its store count using only its operating cash flow.
The company has also notably shown discipline while expanding. For example, in 2024, it decided to redefine its real estate plan, and it recently bowed out of a bidding war for the real estate of bankrupt Salad and Go, letting rival 7 Brew purchase the assets. While the market may not appreciate it, these are the types of decisions that lead to long-term sustainable success in the restaurant industry.
Through a combination of unit expansion and same-store sales growth, Dutch Bros is set to see a massive increase in sales in the coming years. Meanwhile, scale should eventually lead to robust earnings.
Analysts currently project that the company will grow its revenue to $8.5 billion in 2035 from just over $2.1 billion this year. Estimates range from $7.9 billion to $9.1 billion. Meanwhile, the lone analyst earnings per share (EPS) estimate for 2035 is $4.35. Assuming another 10% revenue growth in 2026 and 20% EPS growth, the company would produce $5.22 in EPS in 2036 on revenue of $9.4 billion.
When looking at potential future valuations, we can turn to rival Starbucks, which trades at 2.8 times fiscal 2027 (ending November 2027) sales and 30 times EPS. Starbucks has notably been working to restore margins.
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If we apply a forward price-to-sales (P/S) multiple of 2.8 times on $9.4 billion in 2036 sales, Dutch Bros stock would have a $26.3 billion market cap, or a $150 stock price. That's nearly 4x upside for its current levels. Apply a 30-times forward P/E multiple, and the stock would be worth a similar $157. That would make a 260-share investment worth between $39,000 and $40,800.
That's some massive potential upside, which makes this growth stock a long-term buy. The biggest risks to the company achieving this long-term price target would be the concept becoming less popular or there being just too much competition in the space, from the likes of 7 Brew and other similar concepts, that stall growth. While the stock has huge potential, it still has to prove it can become the next Starbucks and that it won't be the next Krispy Kreme.
Společnost Dutch Bros zvažuje koupi až 65 poboček Salad and Go ve čtyřech státech, které by přestavěla na vlastní provozovny, ale svou původní nabídku nezvýší.
Key Takeaways Dutch Bros is exploring the acquisition of up to 65 Salad and Go sites in four states for shop conversions.BROS opened 48 shops in Q2 2026 and targets at least 185 openings this year on its path to 2,029 by 2029.Dutch Bros won't increase its original offer, but has secured about 90% of its 2029 development pipeline.
Dutch Bros Inc. (BROS - Free Report) is exploring opportunities to accelerate its nationwide expansion through a proposed acquisition of up to 65 Salad and Go locations across Arizona, Nevada, Oklahoma and Texas. The transaction could strengthen the company's presence in established markets while providing additional growth opportunities through the conversion of existing drive-thru sites.
The proposed acquisition involves existing drive-thru properties that Dutch Bros initially planned to convert into company-operated shops beginning in 2027. Management believes the existing Salad and Go locations are comparable in size to Dutch Bros shops, potentially simplifying conversions and accelerating development. Under the original proposal, conversions were expected to begin in 2027.
Importantly, Dutch Bros' development momentum provides a solid foundation for further expansion. The company opened 48 shops in the second quarter of 2026, bringing its total footprint to 1,225 locations. It expects at least 185 openings in 2026 and has secured approximately 90% of the development pipeline required to achieve its goal of 2,029 shops by 2029. Its expansion strategy is further supported by a pipeline of more than 525 operator candidates and improving new-shop productivity.
However, the Salad and Go transaction remains uncertain. On Aug. 31, Dutch Bros announced that it would not increase its original offer for the properties, although it remained engaged in the process. This decision underscores management's disciplined approach to capital allocation and its focus on investments offering attractive returns.
While securing the sites could provide an additional growth catalyst, Dutch Bros' established development pipeline, improving shop productivity and continued expansion into new markets should support its long-term growth trajectory even without the transaction.
Strategic Site Selection Fuels Expansion OpportunitiesDutch Bros' proposed acquisition of up to 65 Salad and Go sites highlights its focus on securing attractive drive-thru locations and increasing market density. Peers Starbucks Corporation (SBUX - Free Report) and Shake Shack Inc. (SHAK - Free Report) are similarly emphasizing disciplined development and strong unit economics to support expansion.
Starbucks is refining its development strategy under the Back to Starbucks initiative, prioritizing profitable locations and enhanced customer experiences. It expects 600-650 net new coffeehouses in fiscal 2026, largely supported by international expansion. North American company-operated growth may remain modest through fiscal 2027 as the company strengthens site selection and accelerates coffeehouse upgrades, targeting at least 1,500 by fiscal 2026-end.
Shake Shack plans to open 60-65 company-operated Shacks and 40-45 licensed locations in 2026. Newer restaurants are generating cash-on-cash returns exceeding 30%, supporting further expansion. Management is also exploring smaller restaurant formats with lower construction costs and selective drive-thru opportunities to access additional markets.
Both competitors highlight the importance of location quality, capital discipline and attractive returns, reinforcing Dutch Bros' approach to evaluating conversion opportunities and sustaining long-term growth.
BROS’ Price Performance, Valuation & EstimatesShares of Dutch Bros have declined 28% in the past six months, underperforming the Zacks Retail - Restaurants industry, the broader Retail and Wholesale sector and the S&P 500 Index.
BROS Stock’s Six-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Dutch Bros stock trades at a forward price-to-sales ratio of 2.61, below the industry’s average of 2.86.
BROS’ P/s Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BROS’ 2026 earnings per share (EPS) implies a year-over-year uptick of 29%. The EPS estimates for 2026 have increased in the past 30 days.
EPS Trend of BROS Stock
Image Source: Zacks Investment Research
Dutch Bros currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It can feel risky to invest in a stock that's lost 38% of its value in nine months, but the market isn't always rational. The times that it isn't create opportunities to buy great stocks on the dip that can lead to incredible shareholder value.
These opportunities can happen when the market crashes or corrects, or for any specific stock when investor sentiment turns negative. Take Dutch Bros (BROS -3.32%), for instance. The coffee shop chain is growing fast and has fantastic long-term potential, but it's down 36% this year.
Here's why it's a great stock to buy and hold.
The road to 7,000 stores Dutch Bros is more than 30 years old, but it's spent most of its life as a small local chain of shops in Oregon. The company embarked on an ambitious expansion plan when it went public in 2021, and it's growing at a fast clip.
Most of the company's 1,225-store fleet is drive-thru only, but it's experimenting with walk-up windows. In other words, it's not your standard coffee shop meant for sitting, but it's meeting demand today while being deliberate about its real estate plan. Its first walk-up window was launched in Los Angeles, near the University of Southern California, and it had the company's highest sales volume before Dutch Bros opened in Chicago in May. That bodes well for both the new walk-up window format and its entry into new urban metro areas.
Image source: Dutch Bros.
Dutch Bros opened 154 stores last year and plans to open 185 this year. In order to meet its goal of having 2,029 stores by 2029, it needs to accelerate store openings. That might be harder than expected, since it ended its offer for 65 Salad and Go stores when the price was increased, and the market wasn't thrilled about that. There is the danger that Dutch Bros won't meet the goal, and the market is already pricing in that possibility.
In the long term, management envisions opening as many as 7,000 locations across the U.S. The company's been entering new regions successfully.
What is Dutch Bros stock worth? Dutch Bros has been reporting impressive metrics, including a 32% year-over-year increase in sales in the 2026 second quarter, driven by new stores and rising same-store sales. It's attracting new customers and generating higher profits, too.
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Another way it's meeting today's moment is in its digital rewards program. 73% of transactions went through digital channels in Q2, and registered members by shop have increased 50% over the last three years. These details point to a fast-growing business with high long-term potential.
However, because the stock has been expensive, it's liable to fall on any misstep, like the Salad and Go deal. Today, shares trade at just over 55 times trailing 12-month earnings, the lowest since it became profitable, and 2.7 time sales, well-below its three-year average.
BROS PE Ratio data by YCharts
That's still not cheap, and it implies confidence in the story. There's still the possibility that it could go even lower if the company doesn't come through on store count, if same-shop sales decelerate, or any number of other things that can go wrong do. However, if you buy and hold for at least five years, you should be well rewarded.
Dutch Bros v první polovině roku 2026 zvýšila tržby o 33 % na 939 milionů USD a čistý zisk o 31 % na 54 milionů USD, přičemž růst podpořila expanze na 1 225 poboček.
Dutch Bros (BROS -2.25%) has gained traction in the highly competitive coffee business. Innovative beverages, an efficient drive-thru system, and a small real estate footprint are among the competitive advantages driving this company's rapid expansion.
Consequently, its qualities have driven its expansion. While it has not become a "cheap" stock, its attributes put a positive spotlight on the company, arguably making it an excellent time to buy the consumer discretionary stock.
Image source: The Motley Fool.
The Dutch Bros opportunity Admittedly, much of the opportunity in Dutch Bros stock stems from a drop in its price since July, which has taken it to its lowest level since late 2024. Growing pains and rising input costs appear to have weighed on the company's performance.
A company called 7 Brew Coffee outbid Dutch Bros to buy 65 former Salad and Go locations in the Southwest. Moreover, Dutch Bros raised capital expenditures (capex) by roughly $80 million to the $350 million to $370 million range. That increase occurred as sales growth slowed due to rising input and real estate costs.
Nonetheless, the company's robust expansion continues. As of June 30, it operated 1,225 locations, up from 1,043 one year ago. It also holds to its target of 2,029 locations by 2029 and a long-term goal of 7,000 U.S. locations. This is likely a critical part of Dutch Bros' growth story as it could follow Starbucks, whose regional-to-national (and later international) expansion has driven massive stock gains over that company's 34-year history.
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The rising shop count is also helping Dutch Bros' growth, as its first-half 2026 revenue of $939 million increased 33% from year-ago levels. That included a 6.9% increase in same-shop sales growth during the period.
Indeed, rising input costs weighed slightly on earnings, though its net income of $54 million in the first two quarters of 2026 still rose 31% year over year.
Additionally, the 2026 revenue guidance of just above $2.1 billion implies a 40% yearly revenue growth rate. Also, with the recent pullback in the stock price, the P/E ratio has fallen to 55. The continued growth has also reduced the forward P/E ratio to 39, making the stock's valuation attractive as the company's rapid growth continues.
At current levels, investors should consider buying Dutch Bros stock.
While it may have looked like it was in the spotlight for the wrong reasons more recently, the good news about the huge growth driving Dutch Bros' expansion has not disappeared.
Moreover, with a declining valuation and a lower stock price, Dutch Bros looks increasingly like a generational buying opportunity to some investors. As Dutch Bros steadily works toward its goal of 7,000 shops, it appears set to make massive gains over the long term.
Akcie Dutch Bros v září klesly o 21 % po zklamání z výsledků za srpen a obavách z rostoucích nákladů. Firma sice mírně zvýšila výhled na celoroční tržby a same-store sales, ale výrazně navýšila capex z mediánu 280 milionů dolarů na 360 milionů dolarů.
Dutch Bros (BROS +0.15%) stock fell 21% in September, according to data provided by S&P Global Market Intelligence. The company is still feeling negative market sentiment after some disappointing earnings updates in August.
Growing painsDutch Bros is a relatively small coffee shop chain that has ambitious expansion plans. It owns 1,177 stores as of the end of the second quarter, and it plans to reach 2,029 stores by 2029, nearly doubling today's count.
Image source: Dutch Bros.
It consistently reports robust growth, and the second quarter was fantastic, which you probably wouldn't realize based on the market's reaction. The company is still growing fast and becoming more profitable, and it's generating consumer loyalty as it expands across the country.
Revenue increased an impressive 32.5% to $550.9 million in the quarter, and company-owned same-shop sales were up 8.3%. Company-owned same-shop transactions were up 3.4%, indicating that the increase didn't come entirely from price hikes. Systemwide metrics were somewhat lower, at 5.8% and 1.7%, respectively, and Dutch Bros is transitioning from its original franchise model to new company-owned stores only.
So what didn't the market like? There's concern about rising costs, which is why negative market sentiment persisted into September, with inflation remaining strong.
The market also didn't like management's guidance. Although it slightly raised full-year guidance for total revenue and same-store sales, it significantly raised guidance for capital expenditures (capex), from a midpoint of $280 million to a midpoint of $360 million. Management explained that average capex per new store is still $1.4 million, and the higher total reflects aggressive expansion.
After the earnings release, the company announced that a deal to acquire a small restaurant chain that would have made it easy to add 65 new stores fell through, feeding into the negativity about whether Dutch Bros would be able to expand as fast as it's aiming for.
An opportunity to buy on the dip?Dutch Bros has short-term plans to double store count and long-term plans to reach 7,000 stores. These stores are attracting fans and sales, and it's easy to see how it could reward investors despite the short-term drop.
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Dutch Bros' P/E ratio has fallen dramatically along with the price, and it trades at 54 times trailing 12-month sales. That's still expensive, and it demonstrates how much the market expects from it.
The good news is that it's the cheapest P/E ratio ever. The bad news is, it's rich enough that the stock can still fall on any missteps.
I think Dutch Bros is an excellent stock with tons of long-term potential. If you can buy now and hold for at least five years, it's a good time to buy.
If you look at some of the growth trends for Dutch Bros (BROS +0.15%), the drive-through coffee and beverage retailer, you might be intrigued.
In the second quarter, Dutch Bros posted 32% revenue growth, 5.8% systemwide same-store sales growth, and 8.3% company-owned same-store sales growth. It also raised its guidance for revenue, same-store sales, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
However, the stock price has fallen off a cliff since those second-quarter earnings were announced on Aug. 5. Before that, the stock was trading at about $65 per share; now it's at $39 per share and near a 52-week low. That's a 40% drop in less than two months.
Dutch Bros' stock is now down about 36% year to date and 25% over the past year.
Why the steep drive despite positive growth numbers? And is Dutch Bros stock a buy now at its 52-week low?
Image source: Getty Images.
Why did Dutch Bros sink to 52-week low? One of the primary reasons that the stock price has tanked over the past two months is a deal to buy the real estate of 65 Salad and Go drive-through locations in Arizona, Nevada, Oklahoma, and Texas from the bankrupt company for a reported $105 million. The Salad and Go locations would be turned into Dutch Bros stores, expanding its footprint in the Southwest.
But the market did not like the deal as it meant increasing its capital expenditures for 2026 to $350 million to $370 million, up from the previous guidance of $270 million to $290 million. Investors likely saw this as too ambitious, putting a drain on cash flow, not just for the real estate acquisitions, but also for the construction costs to turn them into Dutch Bros shops.
But then, a few weeks later, it decided not to pursue the acquisitions. Normally, this might be a good thing, as investors who balked at the deal in the first place might be relieved that they are not moving ahead. But that was not the case as shares sank further because Dutch Bros was outbid by a rival, 7 Brew Coffee, which offered $123 million.
An overreaction? There are other reasons that the stock price tanked. One of them was a drop in foot traffic growth from the previous quarter to 1.7%. Even though same-store sales were up, the increase was due to higher per-customer ticket prices.
There may also have been some investors who reacted negatively to projected lower Q3 same-store sales growth of 4% to 5%, even though Dutch Bros raised its full-year same-store growth guidance to 5% to 6%, up from 4% to 6%.
These items certainly don't warrant that huge pullback that we saw, especially since Dutch Bros decided not to overpay for the Salad and Go properties.
I think a big factor was its valuation. Dutch Bros P/E had increased to over 100 at the end of June. Much of this sell-off was driven by nervousness about the valuation. The P/E ratio is now back to 56, with a forward P/E of 35. That's lower, but still too high. But if Dutch Bros stock dips lower, it warrants a look, given its growth trends.
DA Davidson snížila cílovou cenu Dutch Bros z 85 dolarů na 60 dolarů, ale doporučení Buy ponechala. Analytik čeká zdravou návštěvnost a růst tržeb z nových poboček.
A 49% capex spike and a lost bidding war cratered Dutch Bros shares, but one analyst just reloaded his Buy rating while shifting his valuation two years forward. The question is whether slowing foot traffic or surging new stores tells…
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DA Davidson analyst Matt Curtis cut his price target on Dutch Bros (NYSE:BROS | BROS Price Prediction) from $85 to $60 on September 28. He kept his Buy rating unchanged.
A cut that large signals the old valuation was too generous, but the business case remains intact.
The drive-thru coffee chain trades at $37.76, about 49% below its fifty-two-week high of $74.02. Shares have lost 24.38% over the past month.
Matt Curtis called the stock’s 26% one-month decline an attractive entry point. Dutch Bros grew second-quarter revenue 32.5% and continues to open shops quickly.
It hinges on one number. Whether the cut target and unchanged rating signals confidence or retreat depends on how many customers actually showed up.
Curtis Moved His Valuation Out to 2027 Matt Curtis based the new target on 23 times fiscal 2027 EBITDA, pushing the return further out instead of anchoring it to this year.
He also wrote that “third-party credit card data and store checks suggest underlying traffic remains healthy.”
Curtis expects Dutch Bros to land near the middle of its 5% to 6% fiscal 2026 comparable sales outlook.
Comparable sales measure revenue at locations open at least a year, stripping out growth from new stores, and the debate turns on whether growth comes from new shops or from existing ones selling more.
A Capex Jump and a Lost Bid Broke the Stock Capital spending triggered the selloff. The Motley Fool noted that 2026 capex guidance jumped 49%, and shares fell 20% in the week after midyear results.
Dutch Bros raised its 2026 capex outlook to $350 million to $370 million, largely for its Phoenix franchise acquisition, even though revenue beat expectations.
Then rival 7 Brew outbid Dutch Bros for 73 Salad and Go locations with an offer of more than $143 million.
Chief executive Christine Barone responded that the company has always been disciplined about capital allocation, which signals real restraint since overpaying for conversion sites would have compounded the spending worry that triggered the slide.
Transactions Are Fading Faster Than Comps Dutch Bros still posted 5.8% same-shop sales growth in the second quarter, but transaction growth slowed to 1.7%.
In the third quarter of 2025, Dutch Bros reported 4.7% transaction growth. That slowing is the most important number in this story.
When comps rise while traffic barely moves, growth comes from price and mix, not more customers. Pricing has a ceiling; traffic can keep compounding.
Management guided third-quarter system comps to 4% to 5%. The company said effective pricing would be less than a point in the back half, so ticket gains shrink as transaction comparisons toughen.
Three Target Cuts Signal a Valuation Reset TD Cowen cut its target to $59 from $73, and Melius Research lowered its target to $70 from $95. Three cuts signal a broad reset in what investors will pay for restaurant growth.
One major data provider’s quote page puts the average target at $75.48, although that provider’s own pages disagree. Ratings stand at 4 Strong Buy, 20 Buy, 1 Hold, and 1 Sell.
Dutch Bros ended 2025 with 1,136 shops and raised 2026 revenue guidance to $2.10 billion to $2.13 billion while targeting at least 185 openings.
The market has ignored that. Shares are down 38.35% this year while the S&P 500 is up 12.27%.
Should You Buy or Sell BROS Stock Dutch Bros looks compelling at $37.76. The price sits well below TD Cowen’s $59 target, and director Todd Penegor bought 2,000 shares at $51.56 on August 13.
Transactions are slowing but still growing. New shops keep lifting revenue, and second-quarter net income rose 101.4%.
Pricing rolls off in the back half, which makes the third quarter a clean test of demand. If system comps land inside the guided range with positive transactions, the stock is pricing in a slowdown the business hasn’t delivered.
One datapoint would change my call. If third-quarter transaction growth turns negative, existing shops are losing customers, and new openings would only be hiding a shrinking base.
BROS stock is a buy, but be prepared for a slow recovery.
Contact [email protected] for any questions or corrections.
Dutch Bros (BROS -0.40%) stock looks like a buy after its recent pullback. The coffee chain posted strong second-quarter results on Aug. 5, with revenue up 32% year over year and healthy margins, but as of Sept. 25, the stock is down 49% from its 52-week high after management's near-term outlook came in softer than investors wanted.
Here's why the market's focus on the third quarter is creating an attractive entry point in this company's long-term growth story.
Image source: Getty Images.
Stock sold off on slower comparable sales growth In the second quarter, Dutch Bros' revenue growth was driven both by 48 new shop openings and 5.8% year-over-year growth in systemwide same-shop sales (a metric that excludes locations opened within the last 15 months). This was the company's 13th straight quarter of same-store sales growth.
Profitability is also improving as the chain scales. On a trailing-12-month basis, net margin reached 7%. In the quarter, net income rose to $51.6 million from $38.4 million a year earlier.
So why did the stock sell off? Four factors stand out:
Third-quarter guidance implied slower momentum. Management expects same-shop sales growth of 4% to 5%. That deceleration in growth reflects that the company faces tougher year-over-year comparisons after last year's food program rollout. Near-term cost pressures. Higher coffee and food costs, along with a shift toward built-to-suit leases, are expected to raise the cost of goods sold and weigh on the company's gross margin. Higher capital spending. The company raised its capex guidance to a range of $350 million to $370 million -- up from its prior range of $270 million to $290 million -- as it aims to stay on pace to hit its goal of operating 2,029 shops by 2029. A deal that didn't happen. On Aug. 5, Dutch Bros said it planned to buy 65 former Salad and Go locations, but later walked away after a competing bid exceeded its maximum price. Wall Street prefers a clean, predictable growth path. When anything clouds a company's near-term outlook -- even if its long-term narrative is intact -- the market often punishes the stock.
But the opportunity hasn't changed. At its March 2025 investor day, management pegged its long-term U.S. expansion potential at over 7,000 shops. With 1,225 locations open as of June 30, 2026, Dutch Bros still has a long runway for growth ahead.
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Dutch Bros is trading at 2.6 times sales The rising profit margin and the discipline to avoid overpaying for Salad and Go suggest management is prioritizing profitable growth and long-term shareholder returns. The stock's near-term volatility has created an opening for long-term investors to buy in at a lower valuation.
Dutch Bros trades at about 2.6 times sales. Restaurant chains like Starbucks and Chipotle often commanded price-to-sales multiples in the 3 to 4 range during their early-stage, high-growth years, so 2.6 is a clear discount. For investors who can hold the stock for at least five years, Dutch Bros looks like a buy on this pullback.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Dutch Bros, and Starbucks. The Motley Fool recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
Akcie Dutch Bros od výsledků za 2. čtvrtletí klesly o 37 %, ale Bank of America říká, že ocenění zůstává atraktivní, a potvrzuje doporučení koupit. Firma zároveň čeká růst tržeb v porovnatelných prodejnách o 4 % až 5 % ve 3. čtvrtletí.
Dutch Bros Inc (NYSE:BROS) shares have fallen 37% since the coffee chain's second-quarter results, but Bank of America (BofA) says the stock's valuation remains attractive and has reiterated its 'buy' rating.
The analyst says concerns over near-term same-store sales and longer-term competition from other drive-through concepts have weighed disproportionately on the stock's valuation.
The away-from-home beverage category is among the fastest-growing segments in the restaurant industry, BofA said.
The coffee and café category has grown at a 7% compound annual rate since 2018, generating $55 billion in annual sales, behind only burgers and chicken among limited-service restaurant categories.
The share of consumers reporting espresso-based beverage consumption in the past week rose to 43% in 2025 from 37% in 2020.
Dutch Bros has guided for same-store sales growth of 4% to 5% in the third quarter, down from 9% in the first half of the year.
BofA said the company's innovation pipeline includes approximately three new items per quarter, while its marketing budget is also growing.
Dutch Bros' marketing spending stands at 1.8% of system sales, compared with an average of 3.9%.
The company's food mix remains in the mid single digits, well below Starbucks' 23% share.
Dutch Bros reported approximately 20% same-store sales growth in Texas in the first quarter, despite a 6-percentage-point year-over-year increase in the share of its stores operating within five miles of the closest 7 Brew location.
BofA noted that new units continue to open at higher volumes and that unit returns remain industry-leading.
Dutch Bros trades at 1.4 times its next-12-month valuation relative to the S&P 500, near a historical trough and almost 50% below its three-year historical relative multiple of 2.5 times.
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The blueprint for investing success when it comes to quick-service concepts early in their expansion cycles is pretty clear. If you buy into a chain that is growing at a healthy clip -- with strong comps stacking on top of new openings -- you should generally do OK. A lack of profitability isn't ideal, but it's understandable when a trendy eatery or beverage shop is focused on ramping up its presence across the country.
Dutch Bros (BROS -0.41%) seems to be ticking all the growth-stock boxes. The chain of small-box stores handcrafting coffees, energy drinks, and other specialty beverages just posted its strongest quarterly revenue growth in more than a year. It's also in the black, working on its fourth consecutive year of growing profitability.
The chain should be a rock star for investors, but the headline doesn't lie. Dutch Bros stock has been cut nearly in half from its June highs. It would have to soar almost 100% -- a double Dutch, if you will -- to revisit those highs. It would have to more than double to return to its all-time peak set in early 2025. This feels like a buying opportunity. Let's take a closer look.
Image source: Getty Images.
Cool beans No one likes it when a cup of coffee goes cold. The same can be said about a coffee chain stock. Dutch Bros used to be a market darling among beverage stocks. Investors fixated on the long drive-thru lines. Its strong grasp of young beverage sippers who flocked to their local Dutch Bros after school made it a rare beverage concept, with afternoon traffic spikes.
All of this remains the same, and it's actually better now. Its long streak of positive comps now stretches 19 years long. Annual unit volumes now top $2 million apiece, a big deal since these are small-box stores averaging a mere 900 square feet. You don't need a lot of space when 90% of your traffic comes through the drive-thru lanes.
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Dutch Bros just posted another blowout quarter. Revenue rose 33% to $550.9 million, its strongest growth since the final quarter of 2024. Revenue topped $500 million for the first time. The lion's share of its growth came on the strength of its expansion. It now has 1,225 stores, 17% more than it had a year ago. It's been prioritizing higher-revenue company-owned stores over its franchising efforts, so revenue is growing even faster than the unit count.
The story gets better at the store level, where comps rose 5.8%, with an even more robust 8.3% jump for company-operated locations. Its company stores have consistently outperformed franchisee-run shops for at least the last three years.
This isn't a bottom-line story, but Dutch Bros is profitable. Net income rose 34% in its latest quarter. The shares aren't cheap, but at 30 times next year's earnings, that's a discount to its heady growth.
There are many outstretched hands waiting to hold a Dutch Bros coffee, a handcrafted energy drink, or a colorful, sweet beverage. Having 1,225 stores may seem like a lot, but the chain is sticking to its goal of 2,029 units by 2029. It now sees 7,000 eventual stores. It's a story the market isn't hearing, but grab a drink and gather 'round. Others will come later.
Key Takeaways Dutch Bros posted 3.4% company-operated transaction growth and 8.3% same-shop sales growth in Q2.Rewards drove 73% of transactions and its strongest comp-sales contribution since segmentation began.Dutch Bros raised its 2026 systemwide same-shop sales outlook to 5-6% despite tougher comparisons. Dutch Bros Inc. (BROS - Free Report) continues to build traffic momentum, with the second quarter of 2026 marking its eighth consecutive quarter of same-shop transaction growth. The streak is particularly notable as it comes against increasingly difficult comparisons and reflects the company’s efforts to broaden customer occasions, strengthen loyalty and drive demand through product innovation.
In the second quarter, company-operated same-shop transactions increased 3.4%, while systemwide transactions rose 1.7%. This helped company-operated same-shop sales advance 8.3% and systemwide same-shop sales increase 5.8%. Dutch Bros also recorded its 13th consecutive quarter of positive same-shop sales growth.
The strongest support for continued traffic growth is the company’s expanding set of demand drivers. The food rollout, newer-shop maturation, brand marketing and deeper segmentation within Dutch Rewards all contributed to second-quarter performance. Rewards accounted for 73% of transactions in the quarter, and management said the program delivered its strongest contribution to comparable sales since its customer-segmentation efforts began.
Product innovation is also helping Dutch Bros broaden customer occasions. Myst Energy Refreshers strengthened afternoon demand while also gaining traction in the morning, complementing the company’s food strategy and broader push to become part of customers’ daily routines.
The challenge is tougher comparisons. Management expects transaction comparisons to step up through the rest of 2026 as Dutch Bros laps last year’s food rollout, while effective pricing declines. Even so, the company raised its full-year systemwide same-shop sales outlook to 5-6%, suggesting confidence that Rewards, food, innovation and stronger customer frequency can help sustain traffic growth.
Traffic Growth Remains a Key Competitive FocusDutch Bros’ eight-quarter streak of same-shop transaction growth highlights its ability to generate repeat visits through food, rewards, beverage innovation and broader daypart occasions. Peers such as Starbucks Corporation (SBUX - Free Report) and McDonald’s Corporation (MCD - Free Report) are likewise focused on strengthening traffic through loyalty, menu innovation and improved restaurant execution.
Starbucks is seeing stronger transaction momentum under its Back to Starbucks strategy. In the third quarter of fiscal 2026, U.S. comparable sales rose 7.9%, with transactions up 4.2%. Management said growth was broad-based across dayparts, income levels and access points. Starbucks Rewards reached 35.8 million 90-day active U.S. members, while Refreshers continued to expand customer occasions across both morning and afternoon periods.
McDonald’s is also working to rebuild baseline guest traffic through value, digital engagement and operational improvements. U.S. comparable sales increased 0.8% in the second quarter, though management said traffic fell short of expectations amid inconsistent value execution and reduced digital offers. The company is responding with more national digital promotions, personalized offers for loyal customers and greater marketing support behind proven value platforms, while simplifying restaurant operations to improve service.
Both peers reinforce the importance of loyalty, relevant innovation and consistent execution in sustaining traffic, the same levers Dutch Bros is using to extend its current transaction-growth streak.
BROS’ Price Performance, Valuation & EstimatesShares of Dutch Bros have declined 23.7% in the past six months, underperforming the Zacks Retail - Restaurants industry, the broader Retail and Wholesale sector and the S&P 500 Index.
BROS Stock’s Six-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Dutch Bros stock trades at a forward price-to-sales ratio of 2.76, below the industry’s average of 2.99.
BROS’ P/s Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BROS’ 2026 earnings per share (EPS) implies a year-over-year uptick of 27.6%. The EPS estimates for 2026 have increased in the past 60 days.
EPS Trend of BROS Stock
Image Source: Zacks Investment Research
Dutch Bros currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dutch Bros ve 2. čtvrtletí zvýšil tržby provozovaných poboček o 34 % na 510 mil. USD, ale marže z příspěvku provozovaných poboček se snížila na 30,6 % kvůli vyšším nákladům na kávu a balení.
Key Takeaways Dutch Bros' Q2 shop contribution rose 32% to nearly $156M, with margin at 30.6%.Beverage, food and packaging costs rose 80 bps to 26.1%, led by coffee and food rollout expenses.Labor and SG&A leverage offset some pressure as same-shop sales rose 8.3% and transactions grew 3.4%. Dutch Bros Inc. (BROS - Free Report) continues to demonstrate resilient unit-level economics despite rising input and occupancy costs. In the second quarter of 2026, revenues from company-operated locations increased 34% year over year to $510 million, while company-operated shop contribution rose 32% to nearly $156 million. Company-operated shop contribution margin was 30.6%, or approximately 31%, compared with 31.1% a year ago, reflecting a 50-basis-point contraction despite strong sales growth.
Costs are the key pressure. Beverage, food and packaging expenses rose to 26.1% of company-operated shop revenues, up 80 basis points year over year, primarily due to higher coffee costs and expenses tied to the food rollout. Management expects coffee inflation to remain a headwind in the second half, with its 2026 outlook incorporating about 60 basis points of COGS pressure. Occupancy costs are another drag, with the shift toward build-to-suit leases expected to create roughly 50 basis points of pressure in 2026.
However, rising sales productivity is providing an important offset. Labor costs declined 120 basis points as a percentage of company-operated shop revenues, largely due to sales leverage. Adjusted SG&A also benefited from scale, falling to 13.2% of revenues and generating 90 basis points of leverage. Management now expects roughly 90 basis points of adjusted SG&A leverage for the full year.
Dutch Bros’ traffic and sales momentum could help preserve healthy shop economics. Company-operated same-shop sales increased 8.3% in the second quarter, supported by 3.4% transaction growth, while food, Dutch Rewards and newer-shop maturation continue to support demand. Still, management expects some margin pressure to persist, with the midpoint of its $385-$390 million adjusted EBITDA guidance incorporating roughly 20 basis points of year-over-year margin compression from higher coffee and occupancy costs, partly offset by SG&A leverage.
Margin Resilience Remains a Key Competitive FocusDutch Bros’ ability to sustain a roughly 31% shop contribution margin despite higher coffee and occupancy costs places margin execution at the center of its competitive positioning. Peers such as Starbucks Corporation (SBUX - Free Report) and McDonald’s Corporation (MCD - Free Report) are likewise relying on sales leverage, productivity and cost discipline to protect profitability amid persistent inflationary pressures.
Starbucks is seeing improving margin momentum under its Back to Starbucks strategy. In the third quarter of fiscal 2026, North America operating margin expanded about 280 basis points year over year, supported by stronger sales leverage, operational improvements and cost savings. Management noted that coffee remained a cost headwind, though its impact eased from earlier quarters. Starbucks also expects sales leverage and ongoing cost-saving initiatives to help offset investments in service and menu innovation, while its broader $2 billion cost-savings plan runs through fiscal 2028.
McDonald’s is also focused on balancing inflation with restaurant-level productivity. Management highlighted continued pressure from food, paper and labor costs, while emphasizing productivity opportunities across company and franchise restaurant P&Ls. The company generated more than $4 billion in restaurant margins in the second quarter and is working to simplify restaurant operations, improve execution and support profitable traffic growth.
BROS’ Price Performance, Valuation & EstimatesShares of Dutch Bros have declined 12.6% in the past six months, slightly outperforming the Zacks Retail - Restaurants industry, but underperforming the broader Retail and Wholesale sector and the S&P 500 Index.
BROS Stock’s Six-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Dutch Bros stock trades at a forward price-to-sales ratio of 3.06, below the industry’s average of 3.12.
BROS’ P/s Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BROS’ 2026 earnings per share (EPS) implies a year-over-year uptick of 27.6%. The EPS estimates for 2026 have increased in the past 60 days.
Image Source: Zacks Investment Research
EPS Trend of BROS StockDutch Bros currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dutch Bros v poslední seanci klesl o 3,38 % na 43,44 USD a za poslední měsíc odepsal 11,88 %. Trh čeká na výsledky, kde EPS má být 0,23 USD a výnosy 551,71 mil. USD.
In the latest trading session, Dutch Bros (BROS - Free Report) closed at $43.44, marking a -3.38% move from the previous day. This move lagged the S&P 500's daily loss of 0.59%. Meanwhile, the Dow lost 0.6%, and the Nasdaq, a tech-heavy index, lost 0.65%.
Coming into today, shares of the drive-thru coffee chain operator and franchisor had lost 11.88% in the past month. In that same time, the Retail-Wholesale sector lost 8.48%, while the S&P 500 lost 1.37%.
The upcoming earnings release of Dutch Bros will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.23, reflecting a 21.05% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $551.71 million, up 30.25% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.97 per share and a revenue of $2.14 billion, signifying shifts of +27.63% and +30.59%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Dutch Bros. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Dutch Bros boasts a Zacks Rank of #3 (Hold).
Investors should also note Dutch Bros's current valuation metrics, including its Forward P/E ratio of 46.24. This represents a premium compared to its industry average Forward P/E of 21.35.
We can additionally observe that BROS currently boasts a PEG ratio of 1.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants industry had an average PEG ratio of 1.77 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 157, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Key Takeaways BROS maintains its 5-6% systemwide comp outlook for 2026, with Q3 growth expected at about 4-5%.BROS posted 5.8% systemwide comps in Q2, extending its positive comparable-sales streak to 13 quarters.BROS faces tougher 2H comparisons as pricing eases below 1% and transaction comparisons become challenging. Dutch Bros Inc. (BROS - Free Report) maintains its 2026 systemwide same-shop sales growth outlook of 5-6%, with performance expected to trend toward the midpoint of the range. The outlook incorporates an anticipated moderation to approximately 4-5% in the third quarter. Second-quarter systemwide comps increased 5.8%, including transaction growth of 1.7%, while company-operated comps advanced 8.3% on a 3.4% increase in transactions.
The second quarter of 2026 extended BROS’ streak to 13 consecutive quarters of positive comparable sales and eight straight quarters of transaction growth. Performance benefited from the continued food rollout, maturation of newer shop vintages, brand-marketing initiatives and customer segmentation within Dutch Rewards. Comparable sales remained positive across all dayparts, with particular strength during the morning.
The second-half outlook reflects a more demanding comparison profile. Approximately one percentage point of pricing rolled off in early July, reducing the expected effective pricing contribution to less than one percentage point during the period. Transaction comparisons are also expected to become progressively more difficult through the remainder of the year.
The anniversary of the food rollout creates an additional comparison. BROS began introducing the program in the third quarter of 2025 and expanded it more meaningfully during the fourth quarter. Consequently, second-half 2026 results will be measured against periods that already included food sales. The company expects this comparison to affect primarily net ticket.
Despite the anticipated moderation in third-quarter comparable-sales growth, BROS has not changed its full-year systemwide comparable-sales outlook. Continued maturation of newer shops and strength in the morning daypart are likely to support comparable-sales performance during the remainder of 2026.
How MCD and SBUX Compare on Comparable-Sales MomentumMcDonald’s Corporation (MCD - Free Report) is pursuing a more measured comparable-sales recovery. McDonald’s reported second-quarter global comp growth of 1.3%, with the United States increasing 0.8%. U.S. comps turned slightly negative in July as execution challenges carried into the third quarter. McDonald’s is focused on placing its U.S. baseline momentum in a stronger position by the end of 2026. International markets present a firmer outlook, with third-quarter comp growth in IOM and IDL expected to accelerate sequentially from second-quarter rates of 1.5% and 1.9%, respectively.
Starbucks Corporation (SBUX - Free Report) enters its fiscal fourth quarter with stronger comparable-sales momentum. The company generated fiscal third-quarter global and U.S. comp growth of 7.9%, while U.S. transactions increased 4.2%. Starbucks expects fiscal fourth-quarter U.S. comps to rise 6.5% or better, implying full-year U.S. growth of slightly more than 6% and global growth approaching 6%. Starbucks acknowledged the tougher year-over-year traffic comparisons and continued variability in the broader consumer environment.
BROS’ Price Performance, Valuation & EstimatesShares of Dutch Bros have declined 12.7% in the past six months compared with the industry’s fall of 10.9%.
BROS’ Stock’s Six-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Dutch Bros stock trades at a forward price-to-sales ratio of 3.25, below the industry’s average of 3.27.
BROS’ P/s Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BROS’ 2026 earnings per share (EPS) implies a year-over-year uptick of 27.6%. The EPS estimates for 2026 have increased in the past 30 days.
EPS Trend of BROS Stock
Image Source: Zacks Investment Research
Dutch Bros stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dutch Bros Inc. NYSE: BROS has spent the past five years proving that a drive-thru, specialty drink and coffee chain can grow like a technology company.
Dutch Bros Today
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Many times in recent years it has shown that it can. Same-shop sales have kept climbing and new locations keep opening at a breakneck pace.
But investors don’t seem completely convinced. The stock has been on a wild up-and-down ride since the start of 2025. And when the company reported one of its strongest quarters ever on Aug. 5, shares plunged roughly 19%.
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Analysts are positive on the stock. But share price and the company’s trajectory don’t always line up. The question is whether Dutch Bros is a growth stock or not.
Second-Quarter Results Beat ExpectationsThe company’s second quarter suggests that it is. Revenue climbed 32.5% year-over-year to $550.9 million, comfortably ahead of the $525.4 million analysts had modeled. Adjusted earnings per share came in at 33 cents, beating the 29-cent consensus by roughly 14% and up from 26 cents a year earlier.
Consolidated net income jumped to $51.6 million from $38.4 million in the prior-year quarter, a 34% increase, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 27.8% to $113.7 million.
Same-Shop Sales Remain a Key StrengthThe engine behind those numbers is not merely new locations. It is same-shop sales, the metric investors watch most closely at any restaurant chain. Company-operated same-shop sales rose 8.3%, with transactions up 3.4%, the company reported, while systemwide same-shop sales grew 5.8% on 1.7% higher traffic.
The rise marked the 13th consecutive quarter of positive same-shop sales and the eighth straight quarter of positive traffic growth.
As a result, management raised full-year 2026 guidance across the board. Revenue is now expected between $2.1 billion and $2.13 billion, up from a prior $2.05 billion-to-$2.08 billion range. While systemwide same-shop sales growth was tightened to 5%-6%, adjusted EBITDA guidance rose to between $385 million and $390 million from $370 million to $380 million.
Dutch Bros Accelerates Its ExpansionIn all, Dutch Bros ended the quarter with 1,225 total locations, and management expects a total of 185 new shops this year.
The company also agreed to acquire up to 65 shuttered Salad and Go drive-thru sites across Arizona, Nevada, Oklahoma, and Texas, which it plans to convert into Dutch Bros locations in 2027, a low-cost path to real estate in markets where the brand wants to densify.
Investors React to a Softer OutlookYet, following the recent quarterly report, shares fell nearly 19% the day after, extending a decline that reached roughly 22% within two weeks. It’s not that the numbers were bad; it’s just that the immediate future did not look as shiny.
Dutch Bros Inc. (BROS) Price Chart for Tuesday, September, 1, 2026
Third-quarter same-shop sales guidance of 4% to 5% apparently looked light after the acceleration seen earlier in the year. The company’s capital-expenditure guidance of $350 million to $370 million also signaled that heavy, store-building spending is not slowing down.
In other words, the company’s history exceeded its own targets, but disappointed investors with only strong guidance.
The stock is currently down about 22% from the start of the year and 34% over the past 12 months.
Analysts Maintain a Bullish ViewDespite the volatility, 23 analysts currently cover the stock with a consensus rating of Moderate Buy. The consensus breaks down to two Strong Buys, 18 Buy ratings, and three Holds. In the past month, two analysts have lowered their price targets, though they kept their ratings as Buy or Outperform.
Overall, the stock has a 12-month target of $77.15, implying an upside of 62%. The highest target is now $88 per share, while the lowest is $68, still a strong premium for a stock trading at about $49.
Competition and Spending Create RisksHaving gone public five years ago at $23 per share, Dutch Bros is still young as a public company. Its success has come despite stiff competition against deep-pocketed rivals. But the competition continues with companies including Starbucks NASDAQ: SBUX, Black Rock Coffee Bar NASDAQ: BRCB, and even fast-casual concepts like CAVA Group NYSE: . CAVA.
Same-shop sales growth, though strong, has also decelerated some from the double-digit pace seen previously. And with heavy capital spending, these are trends and pressures on free cash flow that deserve attention.
The Growth Story Remains IntactDutch Bros remains one of the more compelling growth stories in the restaurant sector. Its expansion and execution does not depend on any single quarter, and the company has shown it can expand with a profit.
But what makes it exciting can also make it volatile. The combination of high expectations, aggressive expansion, and some deceleration in same-shop sales growth can spook investors with little hesitation.
Post-earning pullbacks can still be attractive entry points. Analysts think it’s worth it. Interested investors might need to be ready for a ride.
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Dutch Bros nezvýší svou původní nabídku na akvizici až 65 lokalit Salad and Go v Arizoně, Nevadě, Oklahomě a Texasu. Firma ale zůstává v procesu a dál hledá růst nových poboček.
TEMPE, Ariz.--(BUSINESS WIRE)--Dutch Bros Inc. (NYSE: BROS) ("Dutch Bros" or the "Company"), one of the fastest-growing brands in the U.S. quick-service beverage industry, today announced that it elected not to increase its total offer for the previously announced site acquisition of up to 65 Salad and Go™ locations across Arizona, Nevada, Oklahoma and Texas.
“New shop growth is one of the most important drivers of our long-term strategy, and we remain highly confident in our path to 2,029 shops in 2029,” said Christine Barone, Chief Executive Officer and President of Dutch Bros. “We’ve always been disciplined in how we allocate capital. While we have chosen not to increase our original offer, we remain engaged in the process and will continue to evaluate opportunities where the total investment provides the appropriate return.”
Looking ahead, Dutch Bros will remain focused on its long-term strategy of investing in its people, delivering exceptional customer experiences, and thoughtfully expanding its presence across the country.
About Dutch Bros Inc.
Dutch Bros Inc. (NYSE: BROS) is a fun-loving, mind-blowing drive-thru specialty beverage leader dedicated to making a massive difference, one cup at a time. It was founded in Grants Pass, Oregon, in 1992 and now shares its vibrant culture and fully customizable drinks at 1,225 locations as of June 30, 2026. Dutch Bros Coffee serves a wide variety of unique, handcrafted beverages such as its exclusive Dutch Bros Rebel® energy drink, Myst Energy Refresher™, specialty coffee, nitrogen-infused cold brew, tea, lemonade, soda and more.
Dutch Bros Coffee is wholeheartedly focused on radiating kindness and sharing the Dutch Luv®. In addition to its mission of speed, quality and service, the Dutch Bros Foundation® is passionate about giving back to the communities it serves. Through local giving and annual nation-wide initiatives, the Dutch Bros Foundation makes impactful contributions to causes across the country.
To learn more about Dutch Bros, visit www.dutchbros.com, follow Dutch Bros Coffee on Instagram, Facebook, X, and TikTok, and download the Dutch Bros app to earn points and score rewards!
Forward-Looking Statements
In addition to historical information, this press release contains a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding: receipt of applicable approvals and consummation of the proposed site acquisitions, and the timing and anticipated benefits of the proposed site acquisitions. These statements are based on Dutch Bros’ current expectations and beliefs, as well as a number of assumptions concerning future events. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Dutch Bros’ control that could cause actual results to differ materially from the results discussed in the forward-looking statements, including those related to Dutch Bros’ inability to recognize the anticipated benefits of the site acquisitions, Dutch Bros’ ability to hire and retain employees in connection with the site acquisitions or otherwise, any problems that may arise in successfully integrating acquired sites and assets, which may result in Dutch Bros not operating as effectively and efficiently as expected, or general economic conditions, and other risks, including those described in Dutch Bros’ Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (SEC) on February 13, 2026, Dutch Bros’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on August 5, 2026, and in our future reports to be filed with the SEC. Forward-looking statements contained in this press release are made as of this date, and Dutch Bros undertakes no duty to update such information except as required under applicable law.
Dutch Bros zvýšil výhled tržeb pro rok 2026 na 2,10–2,13 miliardy USD a stále plánuje alespoň 185 otevření poboček. Akcie se ale obchodují za 50,9násobek forward zisku, což ponechává jen malý prostor pro chyby.
Key Takeaways BROS raised 2026 revenue guidance to $2.10-$2.13 billion and plans at least 185 system shop openings.BROS' loyalty, order-ahead, food and energy offerings provide additional growth drivers.BROS trades at 50.9X forward earnings, making sustained growth and productivity crucial. Dutch Bros Inc. (BROS - Free Report) is growing quickly, with rising revenues, positive traffic and a broader development pipeline. Yet the stock still commands a premium valuation while coffee, rent and expansion costs remain elevated.
That mix makes the investment case less about whether Dutch Bros can grow and more about whether that growth can support the price investors are being asked to pay.
Dutch Bros Growth Case Remains StrongManagement raised 2026 revenue guidance to $2.10-$2.13 billion and adjusted EBITDA guidance to $385-$390 million. Systemwide same-shop sales are expected to increase 5-6%, while the company still plans at least 185 system shop openings this year.
The operating base also remains supportive. Second-quarter revenues increased 32.5% year over year to $550.9 million, while systemwide same-shop sales advanced 5.8% with 1.7% transaction growth. That marked an eighth consecutive quarter of transaction gains, a useful indicator that expansion is not relying only on price.
BROS Has Multiple Transaction DriversDutch Rewards represented 73% of second-quarter transactions, showing the scale of the company’s loyalty program. Order-ahead reached roughly 16% of the mix, giving Dutch Bros another channel to improve convenience and encourage repeat visits.
Food had expanded to about 750 system shops, while Myst Energy Refreshers became a permanent menu item after broadening the company’s energy offering. These initiatives give BROS more ways to drive frequency without depending entirely on menu pricing.
Starbucks Corporation (SBUX - Free Report) offers a relevant coffee-shop benchmark. Its fiscal third-quarter 2026 global comparable sales rose 7.9%, led by 4.2% transaction growth. SBUX opened 175 net new stores during the period, reinforcing how traffic and unit growth can work together when execution is effective.
Premium Valuation Leaves Less Room for BROS ErrorBROS trades at 3.5X forward 12-month sales versus 3.1X for its sub-industry and carries a forward price-to-earnings multiple of 50.9X. The premium means investors are already paying for a sizable portion of the company’s expected growth.
That raises the importance of sustaining transaction gains, new-shop productivity and earnings growth as pricing support moderates. A premium multiple can remain justified when operating results stay ahead of expectations, but it also leaves less room for execution misses or slower-than-planned margin improvement.
Execution Risks Could Test Dutch Bros ReturnsManagement expects 2026 capital expenditures of $350-$370 million as Dutch Bros accelerates shop openings, acquisitions and conversions. The scale of that spending increases the need for new locations to mature efficiently and contribute enough sales to offset the capital required to build the network.
Higher coffee costs, greater build-to-suit rent exposure and added food complexity could make that task harder. Restaurant Brands International Inc. (QSR - Free Report) , which owns Tim Hortons, provides another useful industry reference. Tim Hortons had delivered 20 consecutive quarters of positive comparable sales through the first quarter of 2026, while RBI continued to target more than 3% comparable sales and over 5% net restaurant growth toward the end of its 2024-2028 algorithm.
BROS Scores Point to Selective OptimismDutch Bros still presents a credible growth case, but the valuation and execution demands argue against treating growth alone as sufficient reason to buy. The better setup would be one in which transaction momentum, shop productivity and earnings growth keep pace with the premium embedded in the shares.
BROS currently carries a Zacks Rank #3 (Hold). Its Growth Score of A and Momentum Score of B point to favorable growth and momentum characteristics, while the Value Score of F highlights the valuation challenge.
The VGM Score of C reflects that uneven mix across value, growth and momentum. With the Zacks Rank at #3 and the Style Scores split between favorable growth signals and weak value characteristics, the stock fits a more selective, wait-and-see stance rather than an aggressive buying case.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dutch Bros oznámil silné výsledky za 2. čtvrtletí, včetně růstu tržeb v porovnatelných prodejnách o 8,3 % u vlastních poboček. Akcie přesto po zveřejnění výsledků klesly o 18 % a ocenění se stlačilo na 46násobek forwardového zisku.
Dutch Bros (BROS +3.78%) has been remarkably consistent in a tough consumer spending environment, but its premium price tag creates volatility.
On Aug. 5, the Oregon-based coffee chain reported strong second-quarter results, including 8.3% same-store sales growth for company-owned stores. Loyal Dutch Rewards customers continue to drive results, with the rewards program now accounting for 74% of transactions.
Yet Dutch Bros stock fell 18% the next day and recently was down about 22%, despite beating expectations and raising guidance for the year. A reaction like that typically says more about the stock's valuation than the health of the business.
Image source: The Motley Fool.
Loyal customers drive consistent results The company was lapping a challenging comparison after increasing same-store sales by 7.8% in Q2 2025. Building on those results, company-owned stores grew roughly 16% on a two-year stacked basis.
This was the company's 13th consecutive quarter of positive same-store sales and its eighth straight quarter of transaction growth. That traffic, up 3.4% this quarter, makes Dutch Bros stand out in a restaurant industry where many chains are struggling with declining visits.
The drive-thru specialist continues to benefit from rising demand for convenient, customized caffeinated beverages. Starbucks launched its blended energy refreshers last month to compete for that same afternoon crowd.
Is the valuation still stretched? Before earnings, the stock traded at around 66 times forward earnings estimates. After the drop, the multiple compressed to a more reasonable, but still premium, 46 times. Conservative guidance for third-quarter same-store sales of 4% to 5%, a step down from recent results, may have contributed to the sell-off.
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Higher costs continued this quarter, as expected, weighing on profit margins. Food costs rose to 26.1% of company-operated revenue, up 80 basis points year over year, driven by higher coffee costs and the rollout of its new food offerings. Occupancy costs also climbed 50 basis points as the company shifted toward build-to-suit leases.
Despite rising costs, earnings are still expected to grow by 70% in fiscal 2026 to $0.92 per share.
The simplicity of the drive-thru model is part of the appeal, but the addressable market is what makes the investment case compelling. The cold beverage chain has 1,225 shops today and management says it could reach 3,500 locations just by expanding in its current markets.
Management's aspirational goal is to reach up to 7,000 domestic shops, offering investors a rare long-term growth story in the restaurant industry. The recent pullback provides an opportunity to add shares, though the stock's still not cheap, warranting a disciplined approach.
Shares of Dutch Bros (BROS -0.60%) are taking it on the chin. They tanked 19% on Aug. 6, the day following the company's release of second-quarter financial results (quarter ended June 30).
The market's reaction doesn't seem warranted. The coffee stock posted 32.5% year-over-year revenue growth, with diluted earnings per share (EPS) soaring 40%. And it opened 48 new stores in the quarter.
Is it time to buy Dutch Bros on the dip?
Image source: Getty Images.
I think the stock's latest blip presents investors with a good opportunity to add this business to their portfolios. Dutch Bros has what it takes to be a winning investment in the coming five years.
The company's growth trajectory remains intact. It plans to open 185 net new coffee shops in 2026. And by 2029, the goal is for there to be 2,029 Dutch Bros locations, up from 1,225 today.
It's also worth highlighting how each shop is performing. Even in a highly uncertain macro backdrop, systemwide same-store sales rose 5.8% last quarter, continuing a 19-year streak of positive growth last year.
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The consensus view among sell-side analysts is that Dutch Bros' revenue will surge at a compound annual rate of 27% between 2025 and 2028. Adjusted diluted EPS is projected to rise at a 28% annualized clip during that time.
With the stock trading at a reasonable price-to-sales multiple of 3.8, this forecast could propel the share price.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros. The Motley Fool has a disclosure policy.
Dutch Bros tento týden klesl o 20 % navzdory růstu tržeb o 32 % a zisku o 34 % ve 2. čtvrtletí. Trh znepokojily vyšší kapitálové výdaje ve výši 350 až 370 milionů USD a oznámená akvizice 65 poboček Salad and Go.
Shares of quickly growing, hand-crafted beverages chain Dutch Bros (BROS -0.28%) are down 20% this week after the company reported second-quarter earnings on Wednesday. The company grew sales and net income by 32% and 34%, respectively, easily sailing past analysts' expectations. Same-shop sales rose 5.8% during the quarter as well, highlighting that this was not solely expansion-driven growth. Management also raised sales guidance for 2026 to roughly a 29% increase compared to last year.
Despite the impressive figures, Dutch Bros' stock dropped as the market wrestled with a couple of surprising new items.
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The first thing the market seems to be assessing is Dutch Bros' hefty capital expenditures guidance of $350 million to $370 million. While the company is in high-growth mode as it tries to expand from 1,200 locations today to 2,029 by 2029, this new capex outlook represented a 49% increase from 2025 -- surpassing its sales growth this year. That said, this isn't an inherently bad thing. It just means that Dutch Bros is making a bigger bet on its growth opportunities right now, slightly upping its risk-reward potential.
Image source: The Motley Fool.
In addition to this guidance, management announced it was acquiring 65 Salad and Go locations across Texas, Oklahoma, Nevada, and Arizona after the chain went bankrupt. While this probably helps explain some of the higher 2026 capex, it also suggests that 2027's capex may be elevated as the company transforms these locations into new Dutch Bros shops. Again, this isn't inherently bad, but it raises the stakes for Dutch Bros' already ambitious expansion plans.
Ultimately, I think this was an excellent quarter from the company -- especially considering that cash from operations still covers its expansion spending. Trading at 27 times cash from operations, Dutch Bros isn't outrageously priced considering its growth prospects, loyal customer base, and nascent food and rewards programs. I'll be looking to add to my position in the company over the coming weeks and believe Dutch Bros' culture and blend of iced coffees, homemade energy drinks, and other handcrafted drinks stand out from the crowd.
Dutch Bros kupuje 51 provozoven Salad and Go po jejím bankrotu a náhlém uzavření všech poboček. Mezi nimi jsou lokality v Arizoně, Nevadě, Texasu a Oklahomě.
The dust has not yet settled on Salad and Go’s surprise bankruptcy and the abrupt closure of all of its locations, but a fellow Arizona-based restaurant brand is not wasting any time.
Dutch Bros Coffee is moving to buy 51 locations from Salad and Go, which collapsed this week after the ongoing cyclosporiasis outbreak proved to be the final blow for the long-suffering salad chain.
Court documents filed in federal bankruptcy court on Tuesday identified an LLC linked to Dutch Bros as the buyer of dozens of Salad and Go restaurants in Arizona and Nevada, along with additional leases for former Salad and Go locations in Texas and Oklahoma.
Dutch Bros announced the sale on Wednesday, in addition to its second-quarter earnings, after the closing bell. Shares of the coffee chain (NYSE: BROS) fell more than 13% in after-hours trading.
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Salad and Go, founded in Arizona but now headquartered in Texas, had already gone through multiple waves of closures over the last year. Its Chapter 11 filings show that the company suffered financially after an aggressive 2021 expansion had left it over-leveraged.
The salad chain announced this week that it would close all of its remaining locations, with today as its final day of operations.
Limited options in search for a buyerIn shopping for a buyer for its restaurants, Salad and Go explained in court documents that it had very limited options. For instance, its restaurants are drive-through-focused and have no indoor seating for dining, a format that Salad and Go shares with Dutch Bros.
Dutch Bros Inc (NYSE:BROS) stock is trading lower after the company reported second-quarter financial results Wednesday after market close.
• Dutch Bros stock is feeling bearish pressure.
Here are the key highlights.
Dutch Bros Q2 ResultsDutch Bros reported second-quarter revenue of $550.9 million, up 32.5% year-over-year. The revenue total beat a Street consensus estimate of $525.5 million, according to data from Benzinga Pro.
The company reported earnings of 33 cents per share, beating a Street consensus estimate of 29 cents per share.
Company-owned same-shop sales were +8.3% year-over-year in the quarter. Systemwide same shop sales growth was +5.8% year-over-year in the quarter.
Dutch Bros opened 48 new stores in the quarter, with 44 being company-operated.
This marked the 13th consecutive quarter of positive same-shop sales growth and eighth consecutive quarter of same-shop transaction growth.
"We also maintained exceptionally strong development momentum, while AUVs climbed to record levels," Dutch Bros CEO Christine Barone said.
What’s Next for Dutch BrosThe company raised guidance for revenue, EBITDA and same-shop sales growth after the quarterly results.
Dutch Bros now expects full-year revenue to be between $2.1 billion and $2.13 billion. The previous guidance was $2.05 billion to $2.08 billion. The Street is estimating full-year revenue at $2.084 billion, according to data from Benzinga Pro.
Guidance for same-shop sales growth is in the range of 5% to 6%.
Adjusted EBITDA is expected to be in a range of $385 million to $390 million.
"We enter the second half of the year from a position of strength, with a focused plan, strong visibility into our growth initiatives, and a clear path to turning the significant whitespace ahead of us into durable growth," Dutch Bros Chief Financial Officer Josh Guenser said.
The company expects to open at least 185 new shops in the fiscal year.
Company Announces Real Estate AcquisitionWhile the double beat and raised guidance comes in strong, investors may be reacting to news that Dutch Bros has acquired the real estate and related site assets of up to 65 Salad and Go locations across Arizona, Nevada, Oklahoma and Texas.
Salad and Go recently filed for bankruptcy and is shutting down all locations.
The company’s announcement said the deal is expected to close in the third quarter and will give Dutch Bros a portfolio of "established drive-thru locations" that will be converted to Dutch Bros stores in 2027.
"New shop growth is one of the most important drivers of our long-term strategy, and this potential site acquisition demonstrates how we’re investing to accelerate that growth," Barone said.
Financial terms of the acquisition were undisclosed.
Dutch Bros Stock Price ActionDutch Bros stock is down 14.47% to $56.17 in after-hours trading Wednesday versus a 52-week trading range of $44.58 to $74.65.
Photo: Shutterstock
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Dutch Bros má za 2. čtvrtletí 2026 vykázat EPS 29 centů, tedy meziroční růst o 11,5 %, a tržby 524,2 milionu USD, což je o 26,1 % více. Marže ale mohou stlačit vyšší náklady na kávu, food rollout a nájem.
Key Takeaways Dutch Bros' Q2 EPS is projected to rise 11.5% YoY to 29 cents, while revenues are seen up 26.1% to $524.2M.BROS may benefit from same-shop sales growth, food rollout and stronger digital engagement in Q2.Higher coffee costs, food rollout expenses and build-to-suit lease costs may pressure BROS' margins. Dutch Bros Inc. (BROS - Free Report) is scheduled to report second-quarter 2026 results on Aug. 5.
BROS’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 31.6%.
Trend in the Estimate Revision of BROSThe Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at 29 cents, indicating a rise of 11.5% from 26 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $524.2 million. The metric suggests a rise of 26.1% from the year-ago quarter’s figure.
Let us take a look at how things might have shaped up in the quarter to be reported.
Factors Likely to Shape BROS’ Quarterly ResultsDutch Bros’ second-quarter 2026 performance is likely to have benefited from sustained transaction growth, healthy customer demand and continued same-shop sales momentum. The company expects system same-shop sales growth to approach 5% for the quarter, supported by underlying brand strength and transaction growth beyond the unusually successful limited-time offering that aided first-quarter results.
The continued expansion of Dutch Bros’ food platform is likely to have supported second-quarter sales. The program had reached 485 system shops by the end of the first quarter, with attachment rates tracking in the low teens and ahead of initial expectations. Shops offering food continued to generate an approximately 4% comparable-sales lift, while the platform strengthened the morning beverage occasion. Further rollout during the quarter is likely to have supported same-shop sales, transactions and morning-daypart demand.
Strength in company-operated shop revenues and franchising and other revenues is expected to have driven the second-quarter top line. The Zacks Consensus Estimate for company-operated shop revenues is pegged at $485.5 million, up from $380.5 million reported in the prior-year quarter. The consensus estimate for franchising and other revenues is pegged at $38.7 million, compared with $35.3 million a year ago.
Digital engagement and menu innovation may also have supported second-quarter results. Continued adoption of Order Ahead, stronger in-app offer effectiveness and expanded rewards segmentation are likely to have encouraged repeat visits and strengthened customer engagement. The May launch of Myst Energy Refreshers may have provided an additional transaction catalyst by broadening Dutch Bros’ customized energy platform and addressing additional customer occasions.
Pricing and shop expansion are expected to have provided second-quarter top-line support. Dutch Bros carried approximately 1.5 percentage points of pricing into the quarter, benefiting average ticket. The company entered the period with its shop-opening cadence ahead of schedule, while new-shop productivity remained in line with record system-wide AUVs. Strong early performance at converted Clutch Coffee Bar locations and continued openings across existing and new markets may have further expanded the revenue base.
However, elevated input costs are likely to have pressured profitability in the second quarter. Coffee-cost pressure is expected to become more pronounced as 2026 progresses, while expenses associated with the continued food rollout are likely to have weighed on the cost of goods sold. In addition, higher rental expenses stemming from the shift toward build-to-suit leases are expected to have constrained company-operated shop margins in the to-be-reported quarter.
What Our Model Says About BROS StockOur proven model does not conclusively predict an earnings beat for Dutch Bros this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.
Earnings ESP for BROS: Dutch Bros currently has an Earnings ESP of -4.68%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Dutch Bros’ Zacks Rank: The company currently has a Zacks Rank #2.
Stocks Poised to Beat on EarningsIn the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 35% year-over-year increase. SG’s earnings missed estimates in each of the trailing four quarters, with the average miss being 42.4%.
CAVA Group, Inc. (CAVA - Free Report) currently has an Earnings ESP of +20.30% and a Zacks Rank of 3.
In the to-be-reported quarter, CAVA’s earnings are expected to increase 6.3% year over year. CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, with the average surprise being 16.6%.
Brinker International, Inc. (EAT - Free Report) currently has an Earnings ESP of +0.12% and a Zacks Rank of 3.
In the to-be-reported quarter, Brinker earnings are expected to register a 23.3% year-over-year decline. EAT’s earnings surpassed estimates in all of the trailing four quarters, with the average surprise being 6.8%.
Dutch Bros v poslední seanci vzrostl o 2,66 % na 65,70 USD, ale za poslední měsíc klesl o 10,93 %. Trh čeká výsledky za 5. srpna 2026; odhad je EPS 0,29 USD a tržby 524,2 mil. USD.
Dutch Bros (BROS - Free Report) ended the recent trading session at $65.70, demonstrating a +2.66% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.02% for the day. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Shares of the drive-thru coffee chain operator and franchisor have depreciated by 10.93% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 1.33%, and the S&P 500's gain of 0.77%.
The upcoming earnings release of Dutch Bros will be of great interest to investors. The company's earnings report is expected on August 5, 2026. On that day, Dutch Bros is projected to report earnings of $0.29 per share, which would represent year-over-year growth of 11.54%. Meanwhile, the latest consensus estimate predicts the revenue to be $524.2 million, indicating a 26.07% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.94 per share and a revenue of $2.08 billion, indicating changes of +23.68% and +26.96%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dutch Bros. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.6% higher. Currently, Dutch Bros is carrying a Zacks Rank of #2 (Buy).
Looking at valuation, Dutch Bros is presently trading at a Forward P/E ratio of 68.41. This valuation marks a premium compared to its industry average Forward P/E of 20.28.
We can additionally observe that BROS currently boasts a PEG ratio of 1.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.95.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 205, placing it within the bottom 17% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Key Takeaways Dutch Bros saw rewards members make up 74% of all transactions in Q1 2026.Dutch Bros' system same-shop transactions rose 5.1%, marking a seventh straight quarter of growth.Dutch Bros plans at least 185 new shops in 2026 and projects revenues of $2.05B-$2.08B. Dutch Bros Inc. (BROS - Free Report) has steadily transformed its digital rewards platform into one of its strongest competitive advantages. During the first quarter of 2026, 74% of all transactions were made by Dutch Rewards members, highlighting how deeply the loyalty program has become embedded in customer behavior. Rather than simply rewarding repeat visits, the platform is increasingly serving as a growth engine that drives frequency, supports new product launches, enhances marketing efficiency and encourages higher customer engagement.
A loyalty program is most valuable when it increases customer visits rather than merely rewarding existing purchases. Dutch Bros appears to be achieving that objective. During the first quarter, system same-shop transactions increased 5.1%, marking the company's seventh consecutive quarter of transaction growth. System same-shop sales rose 8.3%, while company-operated same-shop sales increased 10.6%. Unlike many restaurant companies that continue relying heavily on pricing, Dutch Bros generated healthy transaction growth alongside moderate ticket expansion, indicating that more customers are visiting its shops rather than simply paying higher prices.
Management credited the momentum to stronger customer engagement and rising Dutch Rewards adoption. The app gives Dutch Bros better visibility into purchase frequency, favorite beverages, seasonal demand and regional trends. These insights help the company personalize offers, target limited-time beverages to the right customers and support food promotions more effectively. Higher digital engagement also creates opportunities to launch new beverages more efficiently, promote food offerings and communicate seasonal campaigns without significantly increasing marketing expenses. As the rewards ecosystem expands, customer acquisition costs could decline while repeat visitation continues improving.
The loyalty platform becomes even more valuable as Dutch Bros continues opening new locations. The company finished the first quarter with 1,177 shops after opening 41 new stores during the quarter and now expects to open at least 185 new shops during 2026. Management also raised its full-year outlook, projecting revenues between $2.05 billion and $2.08 billion and same-shop sales growth of approximately 4-6%.
Dutch Bros' 74% rewards penetration represents far more than a loyalty statistic. It reflects an increasingly data-driven customer ecosystem that supports repeat visits, personalized marketing and more efficient expansion into new markets. The company's recent transaction growth suggests the strategy is already delivering tangible benefits. If Dutch Bros continues combining strong rewards engagement with disciplined new-store expansion, menu innovation and effective digital marketing, its loyalty platform could remain an important catalyst for sustaining faster traffic growth over the coming years.
Rewards Programs Become a Key Competitive BattlegroundDutch Bros' success in driving 74% of transactions through its Dutch Rewards program reflects a broader industry trend, with peers like Starbucks Corporation (SBUX - Free Report) and Shake Shack Inc. (SHAK - Free Report) increasingly investing in digital ecosystems to boost customer frequency, personalization and long-term loyalty.
Starbucks continues to strengthen its Rewards platform as part of its "Back to Starbucks" strategy. SBUX reported a record 35.6 million active U.S. Rewards members in the second quarter of fiscal 2026 and introduced new redemption options and personalized benefits to encourage more frequent visits. Management noted that the redesigned program is already increasing customer engagement and visit frequency, positioning Rewards as a key growth engine rather than simply a discount program.
Shake Shack is also expanding its digital engagement strategy. While the company has yet to launch its loyalty program, management plans to introduce it later in 2026 as part of its broader Project Catalyst initiative. The platform is designed to deepen guest engagement, improve retention and increase lifetime value through personalized experiences rather than points-based discounts, while SHAK’s growing digital customer base provides the data needed to support targeted marketing.
Against this backdrop, Dutch Bros appears well positioned with an already mature rewards ecosystem. With nearly three-fourths of transactions flowing through Dutch Rewards, the company has built a sizable base for personalized marketing, product launches and customer retention.
BROS’ Price Performance, Valuation & EstimatesShares of Dutch Bros have gained 22.7% in the past three months against the industry’s decline of 0.4%.
BROS Stock’s Three-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Dutch Bros stock trades at a forward price-to-sales ratio of 5.13, above the industry’s average of 3.41.
BROS’ P/s Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BROS’ 2026 earnings per share (EPS) implies a year-over-year uptick of 22.4%. EPS estimates for 2026 have increased in the past 30 days.
EPS Trend of BROS Stock
Image Source: Zacks Investment Research
Dutch Bros currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dutch Bros dosáhl 52týdenního maxima 74,65 USD po růstu tržeb o 31 % a zvýšení celoročního výhledu. Firma čeká růst tržeb o 25 % až 27 %, růst tržeb ve stejných pobočkách o 4 % až 6 % a otevření alespoň 185 nových poboček.
Investing in restaurant stocks at their early stages of expansion can be a simple and rewarding strategy for building wealth in the stock market. Dutch Bros fits the profile of a growth stock that famous investor Peter Lynch loved to find during his career managing Fidelity's Magellan Fund.
After consolidating for over a year, Dutch Bros' (BROS 1.57%) shares recently surged to a 52-week high of $74.65. The company's growth amid inflation and other economic headwinds is a testament to its brand strength. Here are three reasons the stock is a solid buy right now.
Image source: Dutch Bros.
1. Brand resilience The stock's recent surge followed another strong quarter. Revenue grew 31% year over year, driven by new shop openings and a healthy same-shop sales increase of 8.3%. This shows the brand driving balanced growth from existing and new locations.
What's more, management raised full-year guidance for revenue, same-shop sales, profitability, and new shop openings. It expects full-year revenue to be up 25% to 27%, to open at least 185 new locations, and to deliver same-store sales growth of 4% to 6%.
The first quarter marked the company's fifth straight quarter of transaction growth, which is a strong showing. Even iconic consumer brands like Starbucks and Nike have struggled to deliver meaningful growth to push their share prices higher. Dutch Bros' consistency in a challenging macroeconomic environment reflects a strong brand in the making.
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2. Passionate culture These results reflect strength in a highly competitive beverage-chain market. While its menu, which spans energy drinks, sodas, smoothies, and coffee, is certainly a draw for customers, management says the brand's biggest differentiator is its people.
The company emphasizes friendly interactions with customers, and this matters because Dutch Bros promotes new shop operators from within. And some of these operators are so passionate about the company that they have the brand tattooed on them.
These are intangible qualities that Wall Street analysts will overlook, but that can be vital to a company's long-term success. This is especially true in the restaurant industry, where making customers happy is fundamental to driving sales. Clearly, this company is run by incredibly passionate people. That's rare, and it says a lot about why Dutch Bros continues to post strong financial results.
3. Profitable expansion strategy Dutch Bros had 1,177 shops open as of March 31, 2026. That covers 25 states, leaving plenty of room for nationwide expansion. Management is targeting 2,029 shops by 2029. But investors shouldn't think that it is recklessly expanding for the sake of growth.
Management scouts each location carefully. Its strategy is to cluster locations in a market so consumers will build their daily routine around visiting a Dutch Bros shop. This lays the foundation for billions in annual revenue through high daily sales volume over the long term.
This detailed planning is starting to show up in profitability. The company operated at a small loss through 2022, but since mid-2023, net income has been steadily growing. It generated $118 million in net income on $1.75 billion in revenue over the trailing 12 months.
The stock isn't cheap, trading at a forward earnings multiple of 76. But the stock looks expensive on a price-to-earnings basis because it's still in the early stages of scaling the business and leveraging expenses.
The price-to-sales ratio is a more useful valuation metric for valuing this company in the early innings of its long-term expansion. On that measure, Dutch Bros shares trade at 5.3 times trailing revenue. That's more reasonable and consistent with the ranges that Starbucks and Chipotle historically traded.
Overall, Dutch Bros' momentum in a tough environment, its passionate workforce, and its expansion opportunities make it a solid growth stock to buy in July.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Dutch Bros, Nike, and Starbucks. The Motley Fool recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
