Venerable Starbucks (SBUX -1.37%) and relative upstart Dutch Bros (BROS -0.30%) have seen their stock prices go in different directions this year. The former had a share price gain of more than 24%, while the latter lost about 24%.
Is the market sending a signal about future prospects, or are investors focusing too much on the short term? To make that determination, investors need to take a closer look at each company's business prospects in conjunction with their valuations.
Let's examine Starbucks and Dutch Bros to see which one currently offers the better investment potential.
Premium Feature
Moneyball Superscore
67/100
Today's Change
(
-1.37
%) $
-1.44
Current Price
$
103.04
Starbucks' impressive revitalization Starbucks' board of directors hired Brian Niccol in 2024 to turn around sales. With a focus on customer service, revamping restaurants, menu changes, and continued expansion, the company has made progress.
That's not easy for a company that's been around for more than half a century. It currently has more than 41,000 company-owned and licensed locations around the world.
Impressively, Starbucks has produced four straight quarterly same-store (comps) increases. That includes its fiscal third-quarter's 7.9% gain. Importantly, higher traffic accounted for 4.2 percentage points, with increased spending responsible for the balance. This covered the period that ended on June 28.
Broken out, North America had an 8.1% increase in comps, and its international locations posted a 5.7% rise. And management expects this momentum to continue for the fourth quarter. It anticipates U.S. comps growth of at least 6.5% and almost 6% growth globally.
Premium Feature
Moneyball Superscore
77/100
Today's Change
(
-0.30
%) $
-0.14
Current Price
$
46.44
Upstart Dutch Bros looks to sustain growth Founded in 1992, Dutch Bros has grown quickly by operating drive-through locations focused on serving high-quality beverages quickly and with strong attention to customer service.
It has 1,225 franchised and company-operated locations as of June 30. That's up from 1,136 restaurants as of Dec. 31. These are entirely located in the United States, although it has no presence in certain states, particularly in the Northeast and Midwest. Management expects to reach 2,029 restaurants in 2029.
You can see how much its concept has resonated with consumers by looking at its results. Dutch Bros continues to increase comps at a good clip. Its second-quarter comps grew 5.8%, with higher spending responsible for 4.1 percentage points. Management expects a 5% to 6% increase for the year.
Image source: Getty Images.
The decision Before making an investment decision, it's important to look at each stock's valuation. Neither one looks like a bargain, but that shouldn't dissuade you from one of them.
Starbucks' shares have a price-to-earnings (P/E) ratio of 60, although that's down from 70 at the start of the year. Dutch Bros' stock trades at a P/E multiple of 66. Still, that's down from 100, which likely played a role in the stock's downfall this year despite still impressive sales growth. Meanwhile, the S&P 500 index has a P/E ratio of 26.
Those individual stock valuations, particularly in comparison to the market, seem like you should steer clear of both. However, I like one in particular despite the rich valuation.
Starbucks has done a good job turning around its business and should be applauded. However, the expansion opportunities just aren't the same.
Dutch Bros stands out for its growth opportunity. It still has a vast opportunity domestically, and it hasn't even tapped the international market.
The company's methodical approach to expansion has been paying off. Notably, management recently walked away from the bidding for Salad and Go's 65 locations in Arizona, Nevada, Oklahoma, and Texas. Some may balk at the decision, but I applaud management sticking to a financially disciplined approach rather than increasing its offer.
With a financially responsible growth plan, I believe long-term investors will find that paying the higher multiple for Dutch Bros is worthwhile.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Dutch Bros (BROS - Free Report) .
Dutch Bros currently has an average brokerage recommendation (ABR) of 1.22, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.22 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 21 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 84% and 8% of all recommendations.
Brokerage Recommendation Trends for BROS
Check price target & stock forecast for Dutch Bros here>>>
While the ABR calls for buying Dutch Bros, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is BROS a Good Investment?In terms of earnings estimate revisions for Dutch Bros, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $0.97.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Dutch Bros. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Dutch Bros.
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 (BROS +3.65%) stock fell 26% in August, according to data provided by S&P Global Market Intelligence. Although it released a stellar earnings report, it wasn't enough to please the market.
Conquering with coffee Dutch Bros operates a coffee shop chain that's expanding quickly across the country. It has 1,225 stores as of the end of the second quarter, and management says that it has secured 90% of the stores it needs to reach its goal of having 2,029 stores by 2029. It also has a longer-term goal of 7,000 stores.
It's growing rapidly, both with new store count and repeat sales, both of which are driving increased sales. Total revenue increased 32% year over year in the second quarter, and same-shop sales were up 5.8%. Company-owned same-shop sales have been increasing at a faster rate than franchised-store sales, including an 8.3% increase in the second quarter, and the company is transitioning to opening only company-owned stores.
Image source: Dutch Bros.
Dutch Bros is live in 26 states as of the end of the quarter, and it entered its 26th, Mississippi, in July. The company has become a popular destination in its live states, and its first Chicago-area store recently reached a record $7 million in volume.
The chain is known for its drive-thrus, which are fast and cost-efficient, although it has varied store concepts to fit demand. It's also launching a food menu, which it has piloted successfully and has now expanded to 750 locations. The goal of the food rollout is to make stores a more important morning destination, and management says that so far, the results have exceeded expecations.
Priced for perfection So why did Dutch Bros stock fall? It mostly boils down to valuation. Even at the lower price, Dutch Bros stock trades at a P/E ratio of 66, which is rich. Management raised guidance for full-year sales after the second quarter report, but same-shop sales growth is trending slightly down for the remainder of the year. At decelerating rates, the stock can't carry the same valuation.
Premium Feature
Moneyball Superscore
76/100
Today's Change
(
3.65
%) $
1.69
Current Price
$
48.00
Another blow is that costs have increased recently, and management is expecting coffee costs to keep rising in the coming quarters.
Finally, on the last day of the month, it announced that it would not increase its offer for 65 Salad And Go stores that it had planned to acquire, and the implication was that the deal might be off. That could put a dent in its expansion strategy and ability to reach its 2029 goals.
Dutch Bros is growing fast and impressing customers. It has a massive long-term opportunity, and if you can stomach some risk, now could be a good time to buy.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Dutch Bros (BROS - Free Report) Dutch Bros Inc. operates and franchises drive-thru beverage shops focused on hand-crafted drinks served with speed and service. The company was founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, OR. Dutch Bros is incorporated in Delaware and its principal executive offices are in Tempe, AZ. It operates roasting, packing, warehouse and administrative facilities centered in Grants Pass, OR, and a roasting and packing facility in Melissa, TX.
BROS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. BROS has a Growth Style Score of A, forecasting year-over-year earnings growth of 27.6% for the current fiscal year.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $0.97 per share. BROS also boasts an average earnings surprise of +23.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, BROS should be on investors' short list.
Shares of Dutch Bros Inc. (NYSE:BROS) are trading lower on Tuesday afternoon as the quick-service beverage chain faces broader macroeconomic headwinds alongside investor digestion of its latest real estate expansion strategy.
The pullback follows a late Monday announcement detailing the company’s decision to maintain capital discipline in an ongoing bidding process for regional drive-thru locations.
Dutch Bros stock is among today’s weakest performers. Why are BROS shares down? Dutch Bros Elects Not To Raise Offer For Salad and Go Sites Dutch Bros announced late Monday that it has elected not to increase its total offer for the previously disclosed acquisition of up to 65 Salad and Go locations across Arizona, Nevada, Oklahoma and Texas.
While opting against raising its bid, management confirmed that the company remains engaged in the process and will continue evaluating opportunities where total investments deliver appropriate financial returns.
Chief Executive Officer Christine Barone emphasized that new shop expansion remains a critical driver of long-term value, reiterating confidence in the company’s path to reach 2,029 total shops by 2029, up from 1,225 locations operated as of June 30, 2026.
Macro Headwinds and Treasury Yield Surge Compound PressureCompounding the downturn, broader equity market volatility weighed heavily on consumer discretionary and high-growth retail stocks. Bond yields surged on Tuesday, with the 10-year Treasury yield reaching 4.8%, its highest level since January 2025, and the 30-year yield rising to 5.25%. The spike occurred despite the U.S. Treasury Department moving in August to double its long-dated bond buybacks to tame borrowing costs.
Persistent inflation concerns and expanding federal deficits, with total U.S. debt exceeding $40 trillion, continue to push discount rates higher. Additionally, crude oil prices jumped after renewed U.S.-Iran military friction, adding broader consumer spending anxieties that routinely pressure high-multiple growth names.
BROS Price Action: Dutch Bros shares were down 5.44% at $46.20 at the time of publication on Tuesday. The stock is near its 52-week low of $44.58, according to Benzinga Pro data.
Read Next
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
There are various methods for successful investing, but even if you're risk-averse, given a long-term horizon, it's a good idea to own excellent growth stocks. Not all growth stocks are high-risk, and over many years, if you choose the right ones, they can generate life-changing wealth. You don't have to invest in artificial intelligence (AI); if you already do, you should make sure to diversify to other categories as well.
If you're looking for some candidates, MercadoLibre (MELI +0.77%), Dutch Bros (BROS -5.74%), and Global-E Online (GLBE -0.62%) are great picks.
1. MercadoLibre MercadoLibre is the Latin American answer to Amazon, though with a twist. It's the leading e-commerce provider in its region and is still growing rapidly, with a 50% year-over-year sales increase in the second quarter. Gross merchandise volume increased 36%.
Image source: Getty Images.
Management highlighted several metrics that demonstrate consumer engagement and point to the long-term opportunity. Items per buyer increased 14% over last year, even though active users increased 26%, which could dilute the number of items per buyer. In Brazil, where the company lowered its free shipping threshold, items per buyer were up 19%.
It also has a major advertising business, and sales increased 62% over last year in the quarter. MercadoLibre now has more than 10% of the digital advertising market. It recently launched an AI advisor that can be used in WhatsApp to analyze campaigns and make suggestions. And it added HBO Max (a service from Warner Bros. Discovery) to its platform, which increases its addressable video audience by about 50%.
In addition to its e-commerce business, MercadoLibre also has a robust financial technology business with an equally compelling opportunity. Total payment volume increased 56% year over year in the second quarter, and monthly active users were up 30%. Assets under management rose 68%, and the total credit portfolio was up 75%.
Premium Feature
Moneyball Superscore
85/100
Today's Change
(
0.77
%) $
14.87
Current Price
$
1,951.07
MercadoLibre's stock dropped earlier this year after the company reported decreasing operating income and lower overall profitability. Still, it says that it continues "to set the dial in a way that prioritizes long-term value creation over short-term profitability." The lower price looks like an excellent chance to buy on the dip.
2. Dutch Bros Dutch Bros is a young and growing coffee-shop chain with tons of long-term potential. It had 1,225 stores as of the end of the second quarter, but management sees the opportunity for 7,000 stores over the next several years.
Image source: Dutch Bros.
That would be an enormous sales driver, but just as importantly, it's driving higher same-store sales. Total comparable sales increased 5.8% year over year in the second quarter, with company-owned comps up 8.3%. Dutch Bros also operates a franchise business, which is why there are two numbers, and it's taking over more franchise locations and incorporating them into company-owned locations.
The founder-leaders recently handed over the reins to new CEO Christine Barone, a seasoned food executive who has been improving the company's real estate structure and, overall, positioning it better for complete domestic expansion. Dutch Bros is now in 25 states. Most stores are drive-thru-only, but it tailors each location to fit demand. They're all set up to be quick, agile, and customer-friendly, and the company's exclusive customized beverages and models are gaining popularity.
Premium Feature
Moneyball Superscore
76/100
Today's Change
(
-5.74
%) $
-2.81
Current Price
$
46.06
Total revenue increased 32% year over year in the second quarter, an impressive showing in the high-inflation environment, and earnings per share (EPS) were up from $0.20 last year to $0.28 this year. Dutch Bros stock could be a multibagger for investors who hold it long-term.
3. Global-E Global-E is one of the most exciting e-commerce companies in the world, but you could be forgiven for never having heard of it -- it doesn't sell any products to end consumers. Instead, it provides cross-border services for e-commerce retailers. Clients who sign up can start selling globally simply by integrating Global-E's platform into their digital channels, increasing their addressable markets manifold.
Image source: Getty Images.
It's known for working with A-list clients like LVMH Moët Hennessy Louis Vuitton and Walt Disney, and it has a constant pipeline of new business and expanded partnerships. In the second quarter, it signed on many new brands, including Ferrari and J.M. Weston, and it added French brand Officine Universelle Buly to the LVMH deal, in addition to other expanded relationships.
Premium Feature
Moneyball Superscore
85/100
Today's Change
(
-0.62
%) $
-0.23
Current Price
$
37.12
After several years of rapid growth, Global-E has become fully profitable while continuing to generate higher sales. Revenue increased 39% year over year in the second quarter, while adjusted net income rose from $37.9 million to $64.9 million. It also generated $73.2 million in free cash flow, up from $63.5 million last year.
The company also has a working relationship with Shopify, which offers services to its millions of merchants under the white-label name of Shopify Managed Markets. Global-E is in an excellent position to keep growing and rewarding investors for many years.
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
$45.99 -2.87 (-5.87%)
As of 02:28 PM Eastern
$44.58▼
$74.0263.88
$77.15
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%.
Get Dutch Bros alerts:
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.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Should You Invest $1,000 in Dutch Bros Right Now?Before you consider Dutch Bros, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Dutch Bros wasn't on the list.
While Dutch Bros currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.
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' 22% monthly decline likely reflects margin and expansion concerns. Yet transaction growth, digital engagement and new-market strength support its outlook.
Top growth stocks are often in the tech area, but not all of them. In fact, you can often find the best opportunities where others aren't looking.
If you have $1,000 to invest, Coffee shop chain Dutch Bros (NYSE:BROS) is the ultimate growth stock to buy now. Here's why.
Image source: Dutch Bros.
A product people want Successful investors like Warren Buffett and Peter Lynch advise followers to buy stock in companies they know and understand. Instead of chasing hot stock tips, look around at what people are using and liking. If everyone you know is enjoying a certain product, there's a good chance that its stock is going to reward you.
Dutch Bros is a small coffee shop chain that's expanding at a fast pace. It's become popular in the 25 states where it already operates, and it has plans to keep entering new ones.
There are several ways Dutch Bros stands out from other chains. Although it calls itself a coffee shop chain, it's known for its customizable cold beverages that may not even include coffee. It has exclusive drinks and a robust innovation engine. It was the first major chain to popularize the boba concept, and it recently launched a low-calorie energy line called Myst.
Dutch Bros is also opening new stores that meet changing demand. Most of its stores are drive-thru only, but it has walk-up windows and dining areas depending on location.
Premium Feature
Moneyball Superscore
76/100
Today's Change
(
-1.58
%) $
-0.80
Current Price
$
49.91
Solid performance in a challenging environment The proof is in the performance. The company is still demonstrating high growth like a young tech disruptor, with a 32% year-over year increase in the 2026 second quarter. The most important piece of that is the same-store sales, which were up 5.8%. And even more critical is that it was the eighth consecutive quarter with transaction growth -- that implies that people are coming in more, and growth isn't coming only from new stores or higher prices.
Another reason it's reliable for long-term growth is its market opportunity. It's not a vague or unsubstantial number, as some tech stocks offer, but management sees the potential to operate 7,000 stores over the next several years, nearly sevenfold from its current count of 1,225 locations. That's a long growth runway from new stores alone.
Dutch Bros is also generating positive and increasing net income, indicating that the company is growing efficiently. It was $51.6 million in the quarter, up from $38.4 million the year before.
Finally, while Dutch Bros stock isn't objectively cheap, it's trading at its lowest P/E ratio since it became profitable.
BROS PE Ratio data by YCharts
If you're in search of an overlooked opportunity, or an excellent growth stock outside of tech, Dutch Bros is an excellent candidate.
Key Takeaways BROS' Q2 revenues rose 32.5%, with same-shop sales up 5.8% and transactions gaining 1.7%.BROS' shop contribution margin fell to 30.6% as coffee, packaging and occupancy costs increased.BROS' 22.9% monthly decline improved valuation, but its premium still requires sustained growth and margins. Dutch Bros Inc.'s (BROS - Free Report) shares have fallen 22.9% in the past month even though second-quarter results showed higher revenues, positive transaction growth and an improved 2026 outlook. The decline has reduced some of the stock’s valuation premium, but it has not removed the operating risks around costs and new-shop expansion.
The investment case now hinges on whether durable traffic and unit growth can offset pressure from coffee inflation, occupancy expense and still-elevated valuation multiples.
Why BROS Fundamentals Still Look ResilientSecond-quarter revenues increased 32.5% year over year to $550.9 million. Adjusted earnings rose 26.9% to 33 cents per share and topped the Zacks Consensus Estimate, showing that the company continued to grow earnings even as cost pressures increased.
Systemwide same-shop sales advanced 5.8%, including 1.7% transaction growth. That marked an eighth consecutive quarter of transaction gains, giving BROS an important demand signal as it continues to expand the shop base.
Coffee and Rent Keep Pressure on Dutch Bros MarginsBeverage, food and packaging costs increased 80 basis points year over year to 26.1% of company-operated revenues. Occupancy and other costs rose 50 basis points to 16.3%, reflecting another source of expense pressure as newer shops enter the system.
Shop contribution margin declined to 30.6% from 31.1%. The drop shows that healthy sales growth does not automatically translate into margin expansion when coffee inflation and newer-shop rent absorb part of the operating leverage.
Expansion Gives BROS More Ways to GrowDutch Bros opened 48 system shops in the second quarter and continues to target at least 185 openings in 2026. Roughly 90% of the pipeline needed to reach 2,029 shops in 2029 has already been identified, while franchise acquisitions and planned drive-thru conversions provide additional development paths.
Starbucks Corporation (SBUX - Free Report) offers a useful industry comparison because its current growth framework also emphasizes comparable-sales growth, coffeehouse expansion and operating leverage. The comparison reinforces why BROS investors will likely watch new-shop productivity and margin conversion as closely as absolute unit growth.
Does the BROS Pullback Create Better Value?BROS trades at 3.5X forward 12-month sales, below its five-year median of 3.9X but above the sub-industry’s 3.1X. The pullback has therefore made the stock cheaper relative to its own trading history without fully eliminating the peer premium.
Restaurant Brands International Inc. (QSR - Free Report) , whose portfolio includes Tim Hortons, provides another relevant quick-service benchmark for coffee-led traffic and store economics. BROS still has to justify its premium through sustained transaction growth, disciplined expansion and better margin performance as cost pressures persist.
BROS Signals Still Favor PatienceThe recent decline has improved the valuation setup, but the operating picture remains mixed. Revenue growth, transactions and expansion are constructive, while lower shop contribution margin and higher input and occupancy costs limit the case for a more aggressive stance.
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, but the Value Score of F remains a clear offset.
The VGM Score of C captures that uneven profile across value, growth and momentum. With a Hold rank and mixed Style Scores, the current signals support a measured approach while investors watch whether unit growth and traffic can translate into stronger margin performance.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
Key Takeaways BROS raised 2026 revenue guidance to $2.10-$2.13 billion and adjusted EBITDA guidance to $385-$390 million.BROS' Q2 systemwide transactions rose 1.7%, extending its streak of transaction gains to eight quarters.BROS plans at least 185 openings in 2026, but rising coffee and occupancy costs could pressure margins. Dutch Bros Inc. (BROS - Free Report) raised its 2026 outlook after a second-quarter earnings beat and the Phoenix franchise acquisition. Higher sales expectations and a larger shop base strengthen the growth case, but rising coffee, occupancy and development costs remain important constraints.
The key test is whether transaction growth and new-shop productivity can support the higher outlook as pricing support moderates.
Dutch Bros Lifts the 2026 BarManagement raised 2026 revenue guidance to $2.10-$2.13 billion from $2.05-$2.08 billion. Adjusted EBITDA guidance increased to $385-$390 million from $370-$380 million.
Systemwide same-shop sales growth is now expected at 5-6%, narrowed upward from the prior 4-6% range. The changes lift management’s full-year sales and profitability expectations while setting a tighter comparable-sales target.
BROS Q2 Beat Had Broad SupportSecond-quarter adjusted earnings of 33 cents per share topped the Zacks Consensus Estimate of 29 cents by 13.8%. Revenues of $550.9 million beat the $524 million consensus mark by 5.1% and increased 32.5% year over year.
Company-operated same-shop sales rose 8.3%, supported by 3.4% transaction growth and a 4.9% increase in ticket. Systemwide same-shop sales advanced 5.8%, giving the raised guidance support from both customer activity and spending.
Traffic Gives Dutch Bros More Quality Behind GuidanceSystemwide transactions increased 1.7% in the quarter, extending transaction gains to eight consecutive quarters. Management expects effective pricing to fall below 1 percentage point in the second half, putting more weight on frequency, food, digital engagement and shop maturation.
Dutch Rewards accounted for 73% of second-quarter transactions, while order-ahead reached about 16% of the mix. Starbucks Corporation (SBUX - Free Report) also reported transaction-led momentum, with fiscal third-quarter 2026 global comparable store sales rising 7.9%, including 4.2% transaction growth.
BROS Expansion Adds Upside and Execution DemandsDutch Bros expects at least 185 system shop openings in 2026 after opening 48 shops in the second quarter. The Phoenix franchise acquisition adds 31 locations, while the agreement for up to 65 Salad and Go sites creates another conversion channel for 2027.
That growth also raises execution demands. Shake Shack Inc. (SHAK - Free Report) opened 16 company-operated and 11 licensed Shacks in its second quarter of 2026 while posting 3.5% same-Shack sales growth, providing a peer reference for balancing unit growth with comparable-sales performance.
Margins Remain the Check on Dutch Bros UpsideCoffee and occupancy costs remain the main pressure points. Dutch Bros expects about 60 basis points of deleverage from cost of goods sold and roughly 50 basis points from occupancy in 2026 as higher coffee costs and build-to-suit rents weigh on the model.
Even with higher adjusted EBITDA guidance, its midpoint implies about 20 basis points of year-over-year margin decline. Operating leverage remains a critical test as the company adds shops, expands food and absorbs a faster development cadence.
Dutch Bros Signals Back Growth but Not a Full Green LightThe raised outlook, sustained traffic gains and visible development pipeline support the growth narrative, but cost pressure and execution demands keep the risk-reward balanced. Investors still need evidence that higher traffic and shop productivity can translate into durable margin performance.
BROS currently carries a Zacks Rank #3 (Hold). Its Growth Score of A and Momentum Score of B indicate favorable growth and momentum characteristics, while the Value Score of F points to weaker value characteristics.
The VGM Score of C reflects a more mixed combined profile across value, growth and momentum. With a Hold rank rather than a top-ranked #1 (Strong Buy) or 2 (Buy), the current setup supports patience even as the company’s operating growth remains notable.
You can see the complete list of today’s Zacks #1 Rank stocks here.
, /PRNewswire/ -- Sweater weather just made a serious comeback with the highly anticipated return of the Caramel Pumpkin Brûlée and Cookie Butter, as well as the debut of the new Autumn Berry. Caramel Pumpkin Brûlée, Cookie Butter and Autumn Berry are now available at all 1,225+ Dutch Bros locations, while supplies last!
Dutch Bros® Brings Back Fall Favorites with an Exciting New Autumn Addition Caramel Pumpkin Brûlée is a beloved fall-time fave featuring pumpkin and salted caramel, covered in a layer of Soft Top®, pumpkin drizzle and raw sugar sprinks. Enjoy it as a breve, latte, chai or Freeze. Cookie Butter is back and better than ever with creamy cookie butter flavor, a cookie butter swirl around the cup, complete with Soft Top® and another layer of cookie butter drizzle. Sip it as a latte, Freeze or chai! Autumn Berry is a vibrantly crisp drink that combines juicy pomegranate, orange and peach flavors with a mixed berry fruit topping. Try this new seasonal flavor as a blended or iced Rebel energy drink or as a Myst Energy Refresher™! "Our customers absolutely loved Caramel Pumpkin Brûlée and Cookie Butter, so naturally, we had to bring them back," said Tana Davila, Chief Marketing Officer at Dutch Bros. "We're excited to feature our newest flavor, Autumn Berry, which is a delicious option for our customers to try this season."
These cozy fall drinks are available starting August 21, at all Dutch Bros locations, while supplies last.
About Dutch Bros Coffee
Dutch Bros Coffee® (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 Coffee, visit www.dutchbros.com, follow Dutch Bros Coffee on Instagram, Facebook & TikTok, and download the Dutch Bros app to order ahead, earn points and score rewards!
Shares of Dutch Bros Inc. (NYSE:BROS – Get Free Report) have received an average recommendation of “Moderate Buy” from the twenty-two research firms that are covering the firm, MarketBeat.com reports. Three investment analysts have rated the stock with a hold rating, eighteen have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $77.15.
Several equities research analysts have commented on the company. DA Davidson cut their price objective on Dutch Bros from $90.00 to $85.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Morgan Stanley lifted their price target on Dutch Bros from $87.00 to $88.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 15th. Piper Sandler boosted their price target on Dutch Bros from $61.00 to $68.00 and gave the stock a “neutral” rating in a research report on Monday, June 22nd. Telsey Advisory Group increased their price objective on Dutch Bros from $66.00 to $74.00 and gave the company an “outperform” rating in a research note on Friday, July 31st. Finally, Freedom Capital upgraded Dutch Bros to a “strong-buy” rating in a report on Wednesday, July 1st.
View Our Latest Report on Dutch Bros
Dutch Bros Stock Down 1.9%
BROS stock opened at $49.30 on Friday. The stock has a market capitalization of $8.61 billion, a P/E ratio of 68.47, a P/E/G ratio of 1.79 and a beta of 2.32. The firm has a 50-day simple moving average of $63.48 and a 200-day simple moving average of $56.90. The company has a quick ratio of 1.19, a current ratio of 1.35 and a debt-to-equity ratio of 0.20. Dutch Bros has a 52 week low of $44.58 and a 52 week high of $74.65.
Dutch Bros (NYSE:BROS – Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.04. The firm had revenue of $550.85 million during the quarter, compared to the consensus estimate of $525.38 million. Dutch Bros had a net margin of 4.91% and a return on equity of 10.01%. The company’s revenue for the quarter was up 32.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.26 EPS. Equities analysts forecast that Dutch Bros will post 0.87 earnings per share for the current fiscal year.
Insider Activity
In related news, major shareholder Dm Individual Aggregator, Llc sold 261,055 shares of the company’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $63.02, for a total transaction of $16,451,686.10. Following the completion of the sale, the insider owned 2,410,800 shares of the company’s stock, valued at approximately $151,928,616. This represents a 9.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Travis Boersma sold 750,000 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $63.02, for a total value of $47,265,000.00. Following the completion of the sale, the chairman owned 2,410,800 shares of the company’s stock, valued at $151,928,616. This trade represents a 23.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 4,086,245 shares of company stock worth $243,021,771. Insiders own 38.90% of the company’s stock.
Institutional Investors Weigh In On Dutch Bros
Hedge funds and other institutional investors have recently bought and sold shares of the company. Osterweis Capital Management Inc. purchased a new stake in shares of Dutch Bros in the 2nd quarter valued at approximately $27,000. Ancora Advisors LLC purchased a new stake in shares of Dutch Bros during the 2nd quarter valued at approximately $29,000. Rakuten Securities Inc. lifted its holdings in Dutch Bros by 557.4% in the second quarter. Rakuten Securities Inc. now owns 447 shares of the company’s stock valued at $31,000 after acquiring an additional 379 shares during the last quarter. Ankerstar Wealth LLC acquired a new position in Dutch Bros in the fourth quarter valued at approximately $31,000. Finally, Quarry LP grew its position in Dutch Bros by 83.5% in the fourth quarter. Quarry LP now owns 600 shares of the company’s stock worth $37,000 after acquiring an additional 273 shares during the period. 85.54% of the stock is currently owned by institutional investors and hedge funds.
About Dutch Bros
(Get Free Report)
Dutch Bros Coffee, trading on the NYSE under the ticker BROS, is an American drive-through coffee chain known for its quick-service model and community-focused brand. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company began as a single coffee stand and has since expanded its footprint across numerous U.S. markets. Dutch Bros specializes in handcrafted espresso drinks, drip coffee, cold brew, energy drinks, smoothies, teas, and a variety of signature “Dutch Freeze” and “Dutch Frost” blended beverages.
The company operates a mix of company-owned and franchised locations, placing a strong emphasis on speed and customer engagement.
Further Reading
Five stocks we like better than Dutch Bros
3 Energy Stocks Raising Dividends as the Sector Surges
5 Reasons the S&P 500 Could Keep Rallying Through Year-End
Walmart’s Post-Earnings Drop Could Be a Buying Opportunity
The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future
Receive News & Ratings for Dutch Bros Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dutch Bros and related companies with MarketBeat.com's FREE daily email newsletter.
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.
Today's Change
(
3.78
%) $
1.83
Current Price
$
50.27
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.
Todd Allan Penegor, Director, executed a direct purchase of 2,000 shares of Dutch Bros Inc. (BROS -3.81%) on Aug. 13, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares purchased (directly held)2,000Transaction value$103,120Post-transaction shares (directly held)7,358Post-transaction value$376,214.54Transaction value based on SEC Form 4 weighted average purchase price ($51.56); post-transaction value based on Aug. 13, 2026, market close ($51.13).
Key questionsWhat was the magnitude of this purchase relative to the director's existing stake?
Todd Allan Penegor expanded his direct equity position by 37%, increasing his total holdings from 5,358 shares to 7,358 shares.How did the purchase price compare to the market valuation on the transaction date?
The purchase was executed at $51.56 per share, a slight premium to the market close of $51.13 on Aug. 13, 2026.What is the insider's total beneficial interest in the company?
Following this transaction, the director holds a direct interest in 7,358 shares, representing 0.0058% of the company's total shares outstanding as of the latest market data.Are there any reported indirect holdings or derivative interests for this insider?
This filing discloses only direct ownership of Class A Common Stock, with no shares held indirectly through entities or trusts, and no reported derivative securities.Company OverviewMetricValueShare Price (as of market close 2026-08-13)$51.13Market Capitalization$8.8 billionRevenue (TTM)$1.9 billionNet Income (TTM)$92.4 millionCompany SnapshotDutch Bros Inc. operates and licenses drive-thru coffee establishments across the United States, generating revenue through both corporate-operated locations and franchising operations under brand names including Dutch Bros, Dutch Bros Coffee, Dutch Bros Rebel, and Blue Rebel.The company operates a dual-revenue model consisting of directly owned and managed shops that generate sales through in-store transactions and online platforms, complemented by a franchising division that generates revenue through licensing agreements and related ventures.Dutch Bros primarily serves convenience-oriented consumers seeking premium coffee and beverage products through its drive-thru format, targeting customers across the United States who value speed and accessibility in their purchasing experience.Dutch Bros Inc. is a significant player in the quick-service restaurant sector, with approximately 24,000 employees and a market capitalization of $8.8 billion. The company has established a distinctive competitive position through its drive-thru coffee model, which emphasizes operational efficiency and customer convenience. With TTM revenue of $1.9 billion and net income of $92.4 million, Dutch Bros demonstrates a scalable business model that leverages both company-operated locations and franchise partnerships to drive growth across the United States.
What this transaction means for investorsAs the saying goes, insiders sell for a variety of reasons, but they buy for only one. That is, they expect the share price to go up. With that in mind, let's have a closer look at this recent insider transaction and the fundamentals of Dutch Bros (BROS).
To start, Todd Allan Penegor, a director at BROS, acquired 2,000 shares of company stock in a transaction valued at approximately $103,000. That amounts to an increase of about 37% in this person's overall BROS holdings. In other words, it's a significant purchase.
As for BROS stock, it has been volatile over the last several years. Overall, shares have delivered a total return of 42%, with a compound annual growth rate (CAGR) of 7.4%. The S&P 500, meanwhile, has generated an 86% total return, with a 13.4% CAGR over the same period.
Today's Change
(
-3.81
%) $
-1.98
Current Price
$
50.04
Most recently, BROS stock plunged following its second-quarter earnings release. The main concerns seemed linked to fears of surging coffee costs and potential tariffs affecting the company's supply lines from South America. At any rate, management reiterated its goal of reaching over 2,000 locations by 2029.
In summary, recent macro headwinds have knocked down BROS stock. However, investors with a growth mindset may want to consider buying shares on a dip, as the company's long-term growth trajectory appears stable.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Dutch Bros (BROS - Free Report) Dutch Bros Inc. operates and franchises drive-thru beverage shops focused on hand-crafted drinks served with speed and service. The company was founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, OR. Dutch Bros is incorporated in Delaware and its principal executive offices are in Tempe, AZ. It operates roasting, packing, warehouse and administrative facilities centered in Grants Pass, OR, and a roasting and packing facility in Melissa, TX.
BROS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. BROS has a Growth Style Score of A, forecasting year-over-year earnings growth of 27.6% for the current fiscal year.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.05 to $0.97 per share. BROS boasts an average earnings surprise of +23.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, BROS should be on investors' short list.
SummaryDutch Bros is now a buy after a sharp post-earnings sell-off, with current pricing attractive amid ongoing rapid expansion.BROS delivered strong Q2 results, beating revenue and EPS estimates, but forward comp sales growth projections and rising costs weighed on sentiment.Despite high valuation metrics (TTM PE 58.32, PS 3.40), BROS’s 29.65% YOY revenue growth and aggressive store expansion support the bullish thesis.I see margin compression as temporary (although it will persist through expansion), with upside potential as new stores scale and revenue growth remains robust.hapabapa/iStock Editorial via Getty Images
I only took one look at Dutch Bros (BROS) before, and came away with, in summary, "I rate BROS as suitable for patient, growth-oriented investors, but will wait for a major catalyst before investing myself." Not long after, BROS enjoyed some
1.34K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in BROS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Dutch Bros delivered a top and bottom line beat in Q2 and raised guidance, yet shares declined sharply. Despite impressive same-store sales growth, valuation remains elevated relative to restaurant industry norms. Market concerns focus on BROS' growth trajectory and margin sustainability, tempering optimism from recent results.
Bank of America Corp DE raised its holdings in shares of Dutch Bros Inc. (NYSE:BROS – Free Report) by 33.4% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,814,815 shares of the company’s stock after buying an additional 454,036 shares during the period. Bank of America Corp DE owned about 1.04% of Dutch Bros worth $91,939,000 at the end of the most recent reporting period.
A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Osterweis Capital Management Inc. purchased a new position in shares of Dutch Bros in the second quarter worth about $27,000. Brown Lisle Cummings Inc. purchased a new stake in Dutch Bros during the 4th quarter valued at about $31,000. Rakuten Securities Inc. boosted its holdings in Dutch Bros by 557.4% during the 2nd quarter. Rakuten Securities Inc. now owns 447 shares of the company’s stock valued at $31,000 after acquiring an additional 379 shares during the period. Ankerstar Wealth LLC bought a new position in Dutch Bros during the 4th quarter worth approximately $31,000. Finally, Quarry LP grew its position in Dutch Bros by 83.5% during the 4th quarter. Quarry LP now owns 600 shares of the company’s stock worth $37,000 after acquiring an additional 273 shares during the last quarter. 85.54% of the stock is owned by institutional investors.
Dutch Bros News Summary Here are the key news stories impacting Dutch Bros this week:
Positive Sentiment: Q2 results exceeded expectations. Dutch Bros reported adjusted earnings of $0.33 per share versus the $0.29 consensus estimate, while revenue increased 32.5% year over year to $550.85 million, topping estimates of $525.39 million. Strong same-store sales, customer traffic and new-store growth supported the beat. Dutch Bros Q2 Earnings and Revenues Beat Estimates Positive Sentiment: Management raised its outlook. Dutch Bros projected 2026 revenue of approximately $2.1 billion to $2.13 billion and highlighted sustained traffic growth, digital initiatives and food offerings that could increase customer visits. The company also continues targeting 2,029 shops by 2029. Dutch Bros 2026 Revenue Outlook Positive Sentiment: Analysts remain generally bullish. Stephens reaffirmed its overweight rating with an $80 price target, while Royal Bank of Canada maintained an outperform rating despite reducing its target from $75 to $70. Royal Bank of Canada Price Target Neutral Sentiment: Dutch Bros agreed to acquire up to 65 closed Salad and Go locations for $105 million. The sites across four states could accelerate store expansion and provide attractive real estate, but the transaction adds capital requirements and integration and redevelopment risk. Dutch Bros Salad and Go Acquisition Negative Sentiment: The market’s reaction suggests expectations were elevated. Even with the earnings beat and higher guidance, investors may be taking profits or questioning whether rapid expansion and the Salad and Go purchase can justify Dutch Bros’ premium valuation. The stock trades at roughly 73.5 times earnings and remains below its 50-day moving average, contributing to near-term selling pressure. Insider Activity at Dutch Bros In related news, Chairman Travis Boersma sold 750,000 shares of the firm’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $63.02, for a total value of $47,265,000.00. Following the completion of the sale, the chairman owned 2,410,800 shares of the company’s stock, valued at $151,928,616. This trade represents a 23.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Dm Individual Aggregator, Llc sold 261,055 shares of the firm’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $63.02, for a total value of $16,451,686.10. Following the completion of the sale, the insider directly owned 2,410,800 shares of the company’s stock, valued at $151,928,616. The trade was a 9.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 4,086,245 shares of company stock worth $243,021,771 over the last three months. Insiders own 38.90% of the company’s stock.
Dutch Bros Stock Down 0.7% NYSE BROS opened at $52.94 on Friday. Dutch Bros Inc. has a 1 year low of $44.58 and a 1 year high of $74.65. The stock has a market capitalization of $9.25 billion, a PE ratio of 73.52, a PEG ratio of 1.61 and a beta of 2.32. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.35 and a quick ratio of 1.19. The business’s 50-day moving average is $64.91 and its 200 day moving average is $57.47.
Dutch Bros (NYSE:BROS – Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.33 EPS for the quarter, beating analysts’ consensus estimates of $0.29 by $0.04. Dutch Bros had a return on equity of 10.01% and a net margin of 4.91%.The business had revenue of $550.85 million during the quarter, compared to analyst estimates of $525.38 million. During the same quarter in the prior year, the company posted $0.26 EPS. Dutch Bros’s quarterly revenue was up 32.5% compared to the same quarter last year. Sell-side analysts forecast that Dutch Bros Inc. will post 0.84 earnings per share for the current year.
Analyst Ratings Changes A number of brokerages have commented on BROS. Stephens reaffirmed an “overweight” rating and issued a $80.00 price target on shares of Dutch Bros in a research note on Thursday. TD Cowen reissued a “buy” rating and set a $73.00 price objective on shares of Dutch Bros in a research note on Wednesday, June 10th. Telsey Advisory Group raised their target price on shares of Dutch Bros from $66.00 to $74.00 and gave the stock an “outperform” rating in a report on Friday, July 31st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Dutch Bros in a research note on Friday, July 17th. Finally, DA Davidson lowered their price target on shares of Dutch Bros from $90.00 to $85.00 and set a “buy” rating for the company in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $77.15.
Read Our Latest Analysis on BROS
About Dutch Bros (Free Report)
Dutch Bros Coffee, trading on the NYSE under the ticker BROS, is an American drive-through coffee chain known for its quick-service model and community-focused brand. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company began as a single coffee stand and has since expanded its footprint across numerous U.S. markets. Dutch Bros specializes in handcrafted espresso drinks, drip coffee, cold brew, energy drinks, smoothies, teas, and a variety of signature “Dutch Freeze” and “Dutch Frost” blended beverages.
The company operates a mix of company-owned and franchised locations, placing a strong emphasis on speed and customer engagement.
See Also Five stocks we like better than Dutch Bros Quantum Earnings Week: Winners and Losers Are Finally Emerging Axon’s Post-Earnings Pullback May Be More About Valuation Than Growth Uber Stock Lags in 2026, But Cash Flow and AV Bets Fuel Upside AppLovin Stock Hits 52-Week Low as Analysts Trim Targets, Stay Bullish Want to see what other hedge funds are holding BROS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Dutch Bros Inc. (NYSE:BROS – Free Report).
Receive News & Ratings for Dutch Bros Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dutch Bros and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEnLight (NASDAQ:LASR) Shares Gap Down – Here’s Why
NEXT HEADLINE »Bank of America Corp DE Buys 102,956 Shares of Old National Bancorp $ONB
Empowered Funds LLC acquired a new position in shares of Dutch Bros Inc. (NYSE:BROS – Free Report) during the 1st quarter, according to its most recent filing with the SEC. The institutional investor acquired 25,830 shares of the company’s stock, valued at approximately $1,309,000.
Several other hedge funds have also modified their holdings of the stock. Marshall Wace LLP grew its stake in shares of Dutch Bros by 15.1% during the 4th quarter. Marshall Wace LLP now owns 3,098,288 shares of the company’s stock valued at $189,677,000 after buying an additional 407,528 shares during the period. Ninety One UK Ltd raised its position in shares of Dutch Bros by 1.5% in the 4th quarter. Ninety One UK Ltd now owns 2,625,483 shares of the company’s stock worth $160,732,000 after buying an additional 39,781 shares during the period. Invesco Ltd. raised its position in shares of Dutch Bros by 4.0% in the 3rd quarter. Invesco Ltd. now owns 2,426,657 shares of the company’s stock worth $127,011,000 after buying an additional 93,515 shares during the period. Geode Capital Management LLC boosted its holdings in Dutch Bros by 1.8% in the fourth quarter. Geode Capital Management LLC now owns 2,265,083 shares of the company’s stock valued at $138,699,000 after acquiring an additional 39,349 shares during the last quarter. Finally, State Street Corp boosted its holdings in Dutch Bros by 1.8% in the fourth quarter. State Street Corp now owns 2,020,112 shares of the company’s stock valued at $123,671,000 after acquiring an additional 35,854 shares during the last quarter. 85.54% of the stock is owned by institutional investors and hedge funds.
Key Stories Impacting Dutch Bros Here are the key news stories impacting Dutch Bros this week:
Positive Sentiment: Q2 results exceeded expectations. Dutch Bros reported adjusted earnings of $0.33 per share versus the $0.29 consensus estimate, while revenue increased 32.5% year over year to $550.85 million, topping estimates of $525.39 million. Strong same-store sales, customer traffic and new-store growth supported the beat. Dutch Bros Q2 Earnings and Revenues Beat Estimates Positive Sentiment: Management raised its outlook. Dutch Bros projected 2026 revenue of approximately $2.1 billion to $2.13 billion and highlighted sustained traffic growth, digital initiatives and food offerings that could increase customer visits. The company also continues targeting 2,029 shops by 2029. Dutch Bros 2026 Revenue Outlook Positive Sentiment: Analysts remain generally bullish. Stephens reaffirmed its overweight rating with an $80 price target, while Royal Bank of Canada maintained an outperform rating despite reducing its target from $75 to $70. Royal Bank of Canada Price Target Neutral Sentiment: Dutch Bros agreed to acquire up to 65 closed Salad and Go locations for $105 million. The sites across four states could accelerate store expansion and provide attractive real estate, but the transaction adds capital requirements and integration and redevelopment risk. Dutch Bros Salad and Go Acquisition Negative Sentiment: The market’s reaction suggests expectations were elevated. Even with the earnings beat and higher guidance, investors may be taking profits or questioning whether rapid expansion and the Salad and Go purchase can justify Dutch Bros’ premium valuation. The stock trades at roughly 73.5 times earnings and remains below its 50-day moving average, contributing to near-term selling pressure. Dutch Bros Trading Down 0.7% Shares of BROS opened at $52.94 on Friday. Dutch Bros Inc. has a one year low of $44.58 and a one year high of $74.65. The stock has a 50-day moving average price of $64.91 and a 200 day moving average price of $57.47. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.19 and a current ratio of 1.35. The company has a market capitalization of $9.25 billion, a P/E ratio of 73.52, a P/E/G ratio of 1.61 and a beta of 2.32.
Dutch Bros (NYSE:BROS – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.33 EPS for the quarter, topping analysts’ consensus estimates of $0.29 by $0.04. Dutch Bros had a return on equity of 10.01% and a net margin of 4.91%.The business had revenue of $550.85 million during the quarter, compared to the consensus estimate of $525.38 million. During the same period last year, the firm earned $0.26 earnings per share. The company’s revenue for the quarter was up 32.5% compared to the same quarter last year. Sell-side analysts forecast that Dutch Bros Inc. will post 0.84 EPS for the current fiscal year.
Wall Street Analysts Forecast Growth Several research firms have recently weighed in on BROS. KeyCorp lifted their price objective on Dutch Bros from $77.00 to $79.00 and gave the company an “overweight” rating in a research note on Thursday, May 7th. Weiss Ratings restated a “hold (c)” rating on shares of Dutch Bros in a report on Friday, July 17th. Piper Sandler lifted their price target on shares of Dutch Bros from $61.00 to $68.00 and gave the company a “neutral” rating in a research report on Monday, June 22nd. Freedom Capital upgraded shares of Dutch Bros to a “strong-buy” rating in a research note on Wednesday, July 1st. Finally, DA Davidson dropped their price objective on shares of Dutch Bros from $90.00 to $85.00 and set a “buy” rating for the company in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Dutch Bros has a consensus rating of “Moderate Buy” and an average price target of $77.15.
Get Our Latest Report on Dutch Bros
Insider Buying and Selling at Dutch Bros In other Dutch Bros news, Chairman Travis Boersma sold 750,000 shares of the firm’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $63.02, for a total value of $47,265,000.00. Following the transaction, the chairman owned 2,410,800 shares of the company’s stock, valued at $151,928,616. This trade represents a 23.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Dm Individual Aggregator, Llc sold 261,055 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $63.02, for a total value of $16,451,686.10. Following the completion of the sale, the insider directly owned 2,410,800 shares in the company, valued at approximately $151,928,616. This trade represents a 9.77% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 4,086,245 shares of company stock worth $243,021,771 over the last 90 days. Insiders own 38.90% of the company’s stock.
Dutch Bros Company Profile (Free Report)
Dutch Bros Coffee, trading on the NYSE under the ticker BROS, is an American drive-through coffee chain known for its quick-service model and community-focused brand. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company began as a single coffee stand and has since expanded its footprint across numerous U.S. markets. Dutch Bros specializes in handcrafted espresso drinks, drip coffee, cold brew, energy drinks, smoothies, teas, and a variety of signature “Dutch Freeze” and “Dutch Frost” blended beverages.
The company operates a mix of company-owned and franchised locations, placing a strong emphasis on speed and customer engagement.
Featured Articles Five stocks we like better than Dutch Bros Quantum Earnings Week: Winners and Losers Are Finally Emerging Axon’s Post-Earnings Pullback May Be More About Valuation Than Growth Uber Stock Lags in 2026, But Cash Flow and AV Bets Fuel Upside AppLovin Stock Hits 52-Week Low as Analysts Trim Targets, Stay Bullish Want to see what other hedge funds are holding BROS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Dutch Bros Inc. (NYSE:BROS – Free Report).
Receive News & Ratings for Dutch Bros Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dutch Bros and related companies with MarketBeat.com's FREE daily email newsletter.
Dutch Bros (BROS -0.60%) is arguably one of the best growth stories in the restaurant sector, but its shares collapsed nearly 20% following its second-quarter earnings report, as investors were disappointed by the coffee shop operator's outlook.
The stock is now down more than 10% on the year, and the sell-off reverses the strong momentum the stock has seen since the spring.
However, the core investment thesis for owning the stock over the long term remains intact.
Image source: The Motley Fool.
A great expansion story Above all else, Dutch Bros is an expansion story. Its small-footprint stores, generally with two drive-thrus and no indoor seating, are relatively cheap to build. However, they generate a lot of sales, with average unit volumes nearing $2.2 million, and have quick payback periods. Meanwhile, Dutch Bros can build out its stores with the robust cash flow it generates.
The company is gradually expanding westward, and it called its recent entry into the Chicago market a big success, with record sales for an opening day in the market. It also continues to increase the number of shops in existing markets, which helps increase brand awareness and drive operational efficiencies in these markets.
Today's Change
(
-0.60
%) $
-0.32
Current Price
$
53.01
On its earnings call, Dutch Bros reiterated its goal of reaching 2,029 shops by 2029. After adding 48 new locations in Q2, of which 44 were company-owned, it now has 1,225 stores, of which 888 are company-operated. It plans to open at least 185 new locations this year. Its longer-term goal is to support 7,000 shops across the U.S.
After the quarter, it acquired 31 locations in the Phoenix market from a longtime franchise for $63.5 million. It also announced that it was buying the real estate of bankrupt Salad and Go, which had 65 locations in Arizona, Nevada, Oklahoma, and Texas. It will convert them to Dutch Bros locations next year, pending the deal's close.
At the same time, Dutch Bros continues to deliver strong same-store sales. For Q2, comparable-store sales jumped by 5.8%, as transactions increased by 1.7%. Company-owned stores once again outperformed, with comparable-shop sales surging 8.3% on a 3.4% increase in transactions. The company credited its new food offerings, loyalty program, and brand marketing for the strong sales results.
Dutch Bros' overall revenue soared 32.5% to $550.9 million, while earnings per share (EPS) surged 40% to $0.28. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 27.8% to $113.7 million.
Despite the strong results, investors were disappointed by the company's outlook. While it did boost the low end of its prior same-store guidance of 4% to 6% up to a new range of 5% to 6%, that would mark a deceleration in the second half. The company noted that it faces tougher comparisons after the start of its food rollout in the third quarter of last year, and that the benefit of a price increase last year lapped in early July.
On the call, analysts asked about whether higher gas prices or competition from Starbucks were affecting the company. Dutch Bros said the same-store slowdown was largely lapping its own success. It said the gap between company-operated stores and franchised ones was largely because newer store vintages, which are primarily company-owned, have been seeing stronger same-store sales growth.
Dutch Bros also increased its full-year revenue guidance to $2.1 billion to $2.13 billion, up from a prior outlook of $2.05 billion to $2.08 billion, and its adjusted EBITDA forecast to $385 million to $390 million, up from $370 million to $380 million.
Same-store growth in the restaurant industry is always going to have some ups and downs based on the economy, pricing, and lapping popular new menu introductions. Despite some expected growth deceleration, this is still an area of strength for Dutch Bros. Importantly, its expansion story remains on track.
Dutch Bros stock looks very cheap in my book. It's trading at a forward price-to-sales (P/S) ratio of 3.1, which is the same multiple as the much more mature Starbucks. Dutch Bros has a much longer store growth runway, and also doesn't have the monumental task of recovering lost margins like its Seattle-based rival. Given its much higher growth potential, Dutch Bros should trade at a much higher P/S valuation than Starbucks.
Between its growth and its valuation, Dutch Bros is one of the best growth stocks in the consumer space to own long-term, in my view.
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.
Today's Change
(
-0.60
%) $
-0.32
Current Price
$
53.01
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.
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.
Today's Change
(
-0.28
%) $
-0.15
Current Price
$
53.18
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.
Key Takeaways Dutch Bros beat Q2 estimates with EPS up 26.9% and revenues rising 32.5% year over year.BROS' growth was driven by new shops, 5.8% comps, and higher transactions and ticket sizes.Dutch Bros raised 2026 revenue and EBITDA outlook, backed by expansion and strong demand. Dutch Bros Inc. (BROS - Free Report) reported second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
The quarter benefited from new shop growth, sustained comparable-shop momentum and transaction-driving initiatives. Systemwide same-shop sales rose 5.8% year over year, supported by a 1.7% increase in transactions.
However, following the earnings release, BROS stock declined 8.6% during the after-hours yesterday.
BROS’ Q2 Earnings & Revenue DiscussionIn the second quarter of 2026, Dutch Bros reported adjusted earnings per share of 33 cents, topping the Zacks Consensus Estimate of 29 cents by 13.8%. The figure increased 26.9% from 26 cents in the prior-year quarter.
Quarterly revenues of $550.9 million surpassed the consensus mark of $524 million by 5.1%. The top line increased 32.5% year over year from $415.81 million, reflecting contributions from new shops and higher comparable sales.
Dutch Bros’ Revenue Growth Broadens Across the ModelCompany-operated shop revenues climbed 34% year over year to $510 million from $380.5 million. The increase reflected contributions from new locations and continued growth across comparable company-operated shops.
Franchising and other revenues advanced to $40.8 million from $35.3 million in the prior-year quarter. Dutch Bros opened 48 system shops during the period, comprising 44 company-operated shops and four franchised locations, and ended the quarter with 1,225 system shops.
BROS’ Q2 Comps Reflect Traffic and Ticket GainsCompany-operated same-shop sales increased 8.3% year over year. The result included 3.4% transaction growth and a 4.9% rise in ticket, showing that higher customer visits and spending supported the sales increase.
Systemwide same-shop sales advanced 5.8%, with ticket up 4.1%. Management cited the food rollout, maturation of newer shop vintages, brand marketing initiatives and customer segmentation within Dutch Rewards as key contributors to performance.
Dutch Bros’ Margins Reflect Cost Pressure and LeverageCompany-operated shop contribution increased 31.9% year over year to $155.97 million. The contribution margin was 30.6%, down from 31.1%, as higher coffee, food and occupancy costs offset part of the benefit from sales growth.
Beverage, food and packaging costs increased 80 basis points to 26.1% of company-operated shop revenues. Labor costs improved 120 basis points to 25.4% on sales leverage, while occupancy and other costs increased 50 basis points to 16.3%. Adjusted EBITDA rose 27.9% to $113.71 million.
BROS’ Q2 Balance Sheet and LiquidityDutch Bros ended the quarter with $268.6 million in cash and cash equivalents, compared with $254.4 million at the end of 2025. Total liquidity was approximately $699 million, including availability under its undrawn revolving credit facility.
Average capital expenditures per new shop were approximately $1.4 million. The company continued shifting toward build-to-suit leases and maintained its long-term target of deriving 60% of its shop portfolio from that development structure.
BROS’ Strategic Site Deal Supports ExpansionDutch Bros entered into an agreement to acquire the real estate and related site assets of up to 65 Salad and Go locations across Arizona, Nevada, Oklahoma and Texas. The transaction is expected to close in the third quarter of 2026, subject to approvals and customary conditions.
The company expects to convert the acquired drive-thru locations into Dutch Bros shops in 2027. Management believes the sites will deepen density in markets where the brand already has awareness and support continued footprint growth. BROS’ 2026 outlook excludes any impact from the transaction.
Dutch Bros Raises 2026 OutlookFollowing the second-quarter performance and the Phoenix franchise acquisition, management raised its 2026 revenue outlook to $2.10-$2.13 billion from $2.05-$2.08 billion. Systemwide same-shop sales growth is now expected between 5% and 6%, compared with the prior 4%-6% range.
Adjusted EBITDA is projected between $385 million and $390 million, up from $370-$380 million. Capital expenditures are expected to be $350-$370 million, while Dutch Bros continues to forecast at least 185 system shop openings in 2026.
BROS’ Zacks Rank & Key PicksDutch Bros currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
Victoria's Secret & Co. (VSXY - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 81.9%, on average. VSXY stock has surged 65.9% in the year-to-date period. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Victoria's Secret’s 2027 sales and EPS indicates growth of 11.9% and 55.7%, respectively, from the year-ago period’s levels.
Five Below, Inc. (FIVE - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 70.1%, on average. FIVE stock has gained 19% in the year-to-date period.
The Zacks Consensus Estimate for Five Below’s 2026 sales and EPS indicates growth of 23.9% and 36.1%, respectively, from the year-ago period’s levels.
FIGS, Inc. (FIGS - Free Report) has a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 212.5%, on average. FIGS stock has declined 3.8% in the year-to-date period.
The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 15.5% and 36.8%, respectively, from the prior-year levels.
Key Takeaways Dutch Bros raised 2026 revenue guidance to $2.1-$2.13 billion after Q2 results exceeded expectations.Company-operated same-shop sales rose 8.3%, including 3.4% transaction growth, extending traffic gains.Food reached 750 shops, Rewards topped 73% of transactions and Order Ahead reached about 16% of mix. Dutch Bros Inc. (BROS - Free Report) used its second-quarter 2026 earnings call to emphasize sustained transaction growth, stronger new-shop productivity and more customer occasions. Management raised full-year guidance after results exceeded expectations and the company completed a Phoenix franchise acquisition.
Adjusted earnings of 33 cents per share beat the Zacks Consensus Estimate of 29 cents. Revenues of $550.9 million topped the Zacks Consensus Estimate of $524.2 million and increased 32.5% year over year.
BROS Raises Its Full-Year OutlookCFO Joshua Guenser raised 2026 revenue guidance to $2.1 billion to $2.13 billion and adjusted EBITDA guidance to $385 million to $390 million. At least 185 system shop openings remain planned.
Systemwide same-shop sales are now expected to grow 5% to 6%, with results trending toward the midpoint. Management expects 4% to 5% growth in the third quarter.
A UBS analyst asked about the back-half outlook. Guenser cited tougher transaction comparisons, lower effective pricing and the anniversary of the food rollout, while CEO and president Christine Barone said the company’s sales initiatives remained effective.
Dutch Bros Extends Transaction GrowthBarone said the quarter marked the eighth consecutive period of transaction growth and the 13th straight quarter of positive same-shop sales.
Company-operated same-shop sales rose 8.3%, including 3.4% transaction growth. Systemwide same-shop sales increased 5.8%, with transactions up 1.7%.
When a TD Cowen analyst questioned the implied third-quarter slowdown, Guenser again identified comparisons and pricing as the primary drivers. Barone emphasized mobile ordering, rewards, food and menu innovation as continuing traffic drivers.
BROS Expands Shops and Its PipelineDutch Bros opened 48 shops during the quarter, including 44 company-operated locations. Management said it has about 90% of the pipeline required to reach 2,029 shops in 2029.
The company acquired franchise rights and assets for 31 Phoenix-area locations for $63.5 million. Management expects about $25 million of incremental 2026 revenues and $5 million of adjusted EBITDA from the transaction.
Dutch Bros also agreed to acquire up to 65 Salad and Go sites for conversions beginning in 2027. Guenser told a Guggenheim analyst that the sites provide suitable real estate in markets where management still sees substantial white space.
Dutch Bros Broadens Customer OccasionsBarone said the food program reached about 750 system shops by quarter-end, ahead of schedule. The offering is designed to strengthen the morning daypart and capture visits previously lost to breakfast competitors.
A Baird analyst asked about the platform’s next phase. Barone said food attach rises quickly after launch and that the current nine-item lineup leaves room for broader awareness and seasonal offerings.
Myst Energy Refreshers earned a permanent menu position after strong trial and repeat rates. Dutch Rewards represented more than 73% of transactions, while Order Ahead reached about 16% of transaction mix, giving management additional tools to build frequency.
BROS Balances Growth With Cost PressureCompany-operated shop contribution margin was 30.6%, compared with 31.1% a year earlier. Higher coffee, food and occupancy costs offset labor and administrative leverage.
Guenser said 2026 guidance includes about 60 basis points of cost-of-goods pressure and roughly 50 basis points of occupancy pressure. Adjusted SG&A is expected to produce about 90 basis points of leverage.
At the midpoint of guidance, adjusted EBITDA margin would face about 20 basis points of year-over-year pressure. Management maintained that shop economics and sales growth support continued expansion despite those cost pressures.
Dutch Bros Maintains a Scalable Growth PlaybookManagement’s tone remained confident but focused on execution. Its priorities are transaction growth, stronger customer routines, disciplined development and enough leadership depth to support national expansion.
The call showed Dutch Bros relying on coordinated growth levers rather than a single promotion or pricing action. Food, energy innovation, digital engagement and real estate development remain central to the company’s direction.
BROS Zacks Signals Remain MixedBROS carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings-estimate revision outlook. Its Growth Score of A is favorable, while the Value Score of F, Momentum Score of C and VGM Score of C create a mixed style profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Style Scores complement the Zacks Rank, with A and B grades representing stronger characteristics. The Zacks Rank can change as analyst estimates are revised following the just-reported results.
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.
Subscribe to the Daily newsletter.Fast Company's trending stories delivered to you every day
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.
, /PRNewswire/ -- The United Kingdom Competition and Markets Authority has today formally cleared the acquisition of Warner Bros. Discovery, Inc. (NASDAQ: WBD) ("WBD") by Paramount Skydance Corporation (NASDAQ: PSKY) ("Paramount"), representing an important milestone in completing the transaction.
Paramount is grateful to the CMA for its constructive engagement and its review of the transaction.
Separately, Paramount has entered into a deed of covenant and undertaking with the UK Department for Digital, Culture, Media and Sport. Paramount welcomed the opportunity to engage with DCMS and is pleased to have agreed on a path forward.
Paramount has already received competition clearances from antitrust and competition authorities in: the United States, Australia, Brazil, Canada, China, Kuwait, Montenegro, New Zealand, North Macedonia, Saudi Arabia, Serbia, South Africa, South Korea, Ukraine, and by the European Commission, and the COMESA Competition Commission.
Additionally, Paramount has received foreign direct investment clearances in Australia, Belgium, Czechia, Germany, France, Italy, New Zealand, Romania, Spain, and Slovenia. The transaction was also unconditionally approved by European Commission under its Foreign Subsidies Regulation regime and by the Austrian Federal Competition Authority under its media merger control regime.
With the clearance from the Competition and Markets Authority, bodies and governments representing 66 jurisdictions have either cleared the transaction or chosen not to challenge it on competition and/or foreign direct investment grounds.
These clearances recognize that the combination of Paramount and WBD will enhance consumer choice and enable a creative-first company to invest in more projects and bring stories to audiences worldwide. It will create a scaled media and entertainment company capable of competing with the tech companies that have come to dominate the industry, strengthening the media ecosystem and creating more opportunities for creatives both in front of and behind the camera.
As we have noted, this transaction does not raise antitrust concerns in any market. Today's clearance by the CMA further reinforces that. Similar to the European Commission, which cleared the transaction on 22 July 2026 after months of careful review, the conclusions reached by the CMA directly refute the assumptions that underpin the US state AGs' complaint seeking to block the transaction, despite federal approval. When considering theatrical film distribution, the CMA concluded that the merged entity "would continue to face competition from these three major studios and a range of other smaller studios." At several points, the CMA review considered how other forms of content distribution directly compete with SVOD. Moreover, in its assessment of linear cable and in particular children's TV channels, the CMA highlighted the competitive constraint from free-to-air channels and children's content available via SVOD, and in relation to the supply of SVOD services, the constraint imposed by broadcast video on demand services and other SVOD suppliers. These conclusions further demonstrate the misguided and gerrymandered market definitions relied upon by the US state AGs in their antitrust complaint in California.
About Paramount, a Skydance Corporation
Paramount, a Skydance Corporation is a next-generation global media and entertainment company, comprised of three business segments: Studios, Direct-to-Consumer, and TV Media. Paramount's portfolio unites legendary brands, including Paramount Pictures, Paramount Television, CBS, CBS News, CBS Sports, Nickelodeon, MTV, BET, Comedy Central, Showtime, Paramount+, Pluto TV, and Skydance Animation, Film, Television, Interactive/Games, and Paramount Sports Entertainment.
This communication contains "forward-looking statements" regarding the merger. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Paramount or WBD. Risks and uncertainties include, but are not limited to: the risk that the closing conditions for the merger will not be satisfied, including the risk that clearances under applicable antitrust or regulatory laws will not be obtained; the possibility that the transaction will not be completed in the expected timeframe or at all; potential adverse effects to the businesses of Paramount or WBD during the pendency of the transaction, such as employee departures or distraction of management from business operations; the risk of stockholder litigation relating to the transaction, including resulting expense or delay; the potential that the expected benefits and opportunities of the merger, if completed, may not be realized or may take longer to realize than expected; risks related to Paramount's streaming business; the adverse impact on Paramount's advertising revenues as a result of changes in consumer behavior, advertising market conditions and deficiencies in audience measurement; risks related to operating in highly competitive and dynamic industries; the unpredictable nature of consumer behavior, as well as evolving technologies and distribution models; risks related to Paramount's decisions to invest in new businesses, products, services and technologies, and the evolution of Paramount's business strategy; the potential for loss of carriage or other reduction in, or the impact of negotiations for, the distribution of Paramount's content; damage to Paramount's reputation or brands; losses due to asset impairment charges for goodwill, content and long-lived assets, including finite-lived intangible assets; liabilities related to discontinued operations and former businesses; increasing scrutiny of, and evolving expectations for, sustainability initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; challenges in protecting and maintaining Paramount's intellectual property rights; domestic and global political, economic and regulatory factors affecting Paramount's businesses generally; the inability to hire or retain key employees or secure creative talent; disruptions to Paramount's operations as a result of labor disputes; risks and costs associated with the integration of, and Paramount's ability to integrate, the businesses of Paramount Global and Skydance successfully and to achieve anticipated synergies; litigation relating to the transactions contemplated by the transaction agreement entered into on July 7, 2024, between Paramount Global and Skydance, potentially resulting in substantial costs; volatility in the price of Paramount's Class B common stock; the effect Paramount's dual-class capital structure and the concentrated ownership may have on the price of its Class B common stock or business; risks related to a private sale of a controlling interest in Paramount, including that Paramount's stockholders may not realize any change of control premium on shares of Paramount's Class B common stock and that Paramount may become subject to the control of a presently unknown third party; risks associated with Paramount's status as a "controlled company" under Nasdaq rules, including its exemption from certain corporate governance requirements; risks associated with the lack of voting rights of Paramount's Class B common stock; risks that anti-takeover provisions in Paramount's amended and restated certificate of incorporation (the "Charter") and amended and restated bylaws, and under Delaware law, could deter, delay, or prevent a change of control; risks that exclusive forum provisions in the Charter could limit a stockholder's choice of forum for certain claims and discourage lawsuits against Paramount's directors and officers; risks that corporate opportunity provisions in the Charter could permit certain persons to pursue competitive opportunities that might otherwise be available to Paramount; risks associated with Paramount's holding company structure, including its dependence on distributions from its subsidiaries to meet tax obligations and other cash requirements; disruptions the merger may cause to Paramount's and WBD's business and commercial relationships; the negative impact that a failure to consummate the merger could have on Paramount's business, financial condition, results of operations and stock price; the risk that the merger may be prevented or delayed or the anticipated benefits reduced if Paramount does not obtain certain regulatory approvals; the risk that the Merger Agreement may be terminated in accordance with its terms, including if any conditions to the closing of the merger are not satisfied; the risk that litigation relating to the merger could prevent or further delay the closing of the merger or result in the payment of damages after closing; challenges realizing synergies and other anticipated benefits expected from the merger, including integrating WBD's business successfully; risks to Paramount's business, financial condition or results of operations as a result of the incurrence of substantial costs and indebtedness in connection with the merger; and risks of reduced ownership and economic interest by Paramount's existing stockholders as a result of the merger. A further list and description of these risks, uncertainties and other factors and the general risks associated with the respective businesses of Paramount and WBD can be found in Paramount's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 25, 2026, Paramount's Form 10-Q for the quarterly period ended March 31, 2026, filed with the SEC on May 4, 2026, and Paramount's Form 10-Q for the quarterly period ended June 30, 2026, filed with the SEC on August 4, 2026, including, in each case, in the sections captioned "Cautionary Note Concerning Forward-Looking Statements" and "Item 1A. Risk Factors," and Paramount's subsequent filings with the SEC, and WBD's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 27, 2026, and WBD's Form 10-Q for the quarterly period ended March 31, 2026, filed with the SEC on May 6, 2026, including, in each case, in the sections captioned "Cautionary Note Concerning Forward-Looking Statements" and "Item 1A. Risk Factors," and WBD's subsequent filings with the SEC. Copies of these filings, as well as subsequent filings, are available online at www.sec.gov, ir.wbd.com or on request from Paramount or WBD. Paramount undertakes no obligation to update any forward-looking statement as a result of new information or future events or developments, except as required by law.
Starbucks Builds Sovereign AI to Cut $400 Million in Software CostsDutch Bros NYSE: BROS reported second-quarter 2026 revenue growth of 32% and raised its full-year outlook, citing transaction gains, food-program adoption, menu innovation and continued new-shop productivity.
Total revenue for the quarter ended June 30 reached $551 million, while adjusted EBITDA increased 28% year over year to $114 million. Adjusted earnings per share were $0.33, compared with $0.26 in the prior-year quarter, CFO Josh Guenser said on the company’s Aug. 5 earnings call.
Get Dutch Bros alerts:
Dutch Bros Q1 Earnings: The Newest Starbucks Rival Faces Its First Big Reality CheckCompany-operated same-shop sales rose 8.3% during the quarter, including 3.4% transaction growth. Systemwide same-shop sales increased 5.8%, with transactions up 1.7%. CEO and President Christine Barone said the quarter marked the company’s eighth consecutive quarter of transaction growth and its 13th straight quarter of positive comparable sales.
Guidance Raised Following Strong First Half and Franchise Acquisition Dutch Bros raised its 2026 outlook following its year-to-date performance and the acquisition of a Phoenix East Valley franchisee. The company now expects total revenue of $2.1 billion to $2.13 billion, representing 28% to 30% year-over-year growth, and adjusted EBITDA of $385 million to $390 million.
System same-shop sales growth is projected at 5% to 6% for the full year, with the company trending toward the midpoint of that range. Third-quarter system same-shop sales are expected to increase about 4% to 5%. The company expects to open at least 185 system shops during 2026. Capital expenditures are projected at $350 million to $370 million. 2026 Food Inflation Outlook: This ETF Could OutperformGuenser said the third-quarter comparable-sales outlook reflects more difficult transaction comparisons, lower effective pricing and the anniversary of the food-program rollout that began in the third quarter of 2025. He said pricing taken during the year will contribute less than one percentage point to ticket growth in the second half after another price increase rolled off in early July.
The company expects higher coffee costs to continue affecting results in the back half of the year. Its updated outlook includes roughly 60 basis points of full-year cost-of-goods pressure, including food-program costs. The midpoint of adjusted EBITDA guidance assumes approximately 20 basis points of year-over-year margin pressure from coffee and occupancy costs, partly offset by leverage in adjusted SG&A.
Development Pipeline Expands Dutch Bros opened 48 system shops in the second quarter and said it now has about 90% of the pipeline needed to reach its goal of 2,029 shops in 2029. Barone said new-market results in Chicago, Atlanta, Charlotte and Tampa have supported management’s confidence in the national expansion strategy.
The company’s first greater Chicago shop had been pacing toward approximately $4 million in volume, while its Melrose Park location is pacing toward approximately $7 million, according to Barone. The Melrose Park opening also established a company opening-day record. Dutch Bros entered its 26th state, Mississippi, in July.
Last week, Dutch Bros completed the purchase of franchise rights and assets for 31 Phoenix-area locations, including one location under development, for $63.5 million. The company expects the deal to provide about $25 million in net incremental revenue and approximately $5 million in incremental adjusted EBITDA for the remainder of 2026, with the revenue figure including a roughly $5 million reduction in franchise and other revenue.
The company also agreed to acquire real estate and related site assets for up to 65 Salad and Go locations in Arizona, Nevada, Oklahoma and Texas. Dutch Bros expects to close that transaction during the current quarter, subject to approvals and customary conditions, with conversions expected in 2027. Guenser said the locations are comparable in size to Dutch Bros shops and could offer relatively straightforward conversions.
Food, Energy and Digital Programs Support Sales Dutch Bros completed the rollout of its new food program at roughly 750 system shops by the end of the second quarter, ahead of schedule. Barone said the offering has helped the company serve more morning occasions and has produced quick food-attachment gains in shops as the program launches.
Food rollout to franchise locations is expected to begin next quarter. Barone noted that about 300 shops will not be able to offer the hot-food program and that these locations are disproportionately within the franchise system.
The company also introduced Myst Energy Refreshers during the quarter, a plant-powered energy-drink platform that complements its Rebel energy lineup. Dutch Bros said Myst drove trial through a Coffee Fill-A-Tray event, increased energy’s overall sales mix and generated retention rates ahead of recent limited-time-offer benchmarks. The company has decided to add Myst permanently to the menu.
Barone said Myst demand has been strongest in the afternoon, although the product is also gaining morning occasions. She said customer demographics are broadly similar to Rebel’s, while the product has also drawn some demand from lemonade purchases.
Digital engagement continued to rise, with more than 73% of transactions flowing through Dutch Rewards at quarter-end. Registered members per shop have increased more than 50% over the past three years, Barone said. Order Ahead represented about 16% of transactions.
Management attributed the rewards program’s contribution to comparable sales to increased data segmentation, personalized offers and new engagement capabilities, including customer “streaks.”
Margins and Operations Company-operated shop revenue rose 34% to $510 million, while company-operated shop contribution increased 32% to $156 million. Shop contribution margin was approximately 31%.
Beverage, food and packaging costs represented 26.1% of company-operated shop revenue, up 80 basis points year over year. Labor expense was 25.4% of shop revenue, improving 120 basis points due primarily to sales leverage. Occupancy and other costs increased 50 basis points to 16.3% of revenue, reflecting higher rent as Dutch Bros shifts more of its portfolio toward build-to-suit leases.
The company ended June with approximately $699 million of total liquidity, including $269 million of cash and cash equivalents. Average capital expenditures per shop were approximately $1.4 million in the second quarter.
Barone said the company is working to improve throughput through labor deployment, shop layouts, equipment and operational processes. Dutch Bros also introduced a Vibe Check Scorecard during the quarter to provide leaders with visibility into employee turnover, customer feedback, staffing and business performance at the shop level.
About Dutch Bros (NYSE:BROS)Dutch Bros Coffee, trading on the NYSE under the ticker BROS, is an American drive-through coffee chain known for its quick-service model and community-focused brand. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company began as a single coffee stand and has since expanded its footprint across numerous U.S. markets. Dutch Bros specializes in handcrafted espresso drinks, drip coffee, cold brew, energy drinks, smoothies, teas, and a variety of signature “Dutch Freeze” and “Dutch Frost” blended beverages.
The company operates a mix of company-owned and franchised locations, placing a strong emphasis on speed and customer engagement.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Should You Invest $1,000 in Dutch Bros Right Now?Before you consider Dutch Bros, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Dutch Bros wasn't on the list.
While Dutch Bros currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent in 2026. Explore companies poised to replicate the growth, innovation, and value creation of the tech giants dominating today's markets.
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 it has entered into an agreement to acquire the real estate and related site assets of up to 65 Salad and Go™ locations across Arizona, Nevada, Oklahoma, and Texas. The closing is expected to occur in the third quarter of 2026 and is subject to applicable approvals and other customary closing conditions. The si.
Dutch Bros (BROS - Free Report) reported $550.85 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 32.5%. EPS of $0.33 for the same period compares to $0.26 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $524.2 million, representing a surprise of +5.08%. The company delivered an EPS surprise of +13.79%, with the consensus EPS estimate being $0.29.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Dutch Bros performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
System same shop sales and transactions: 5.8% versus the six-analyst average estimate of 5.4%.Shop count, end of period - Total shop count: 1,225 versus 1,218 estimated by six analysts on average.Shop count, end of period - Franchised: 337 versus 336 estimated by five analysts on average.Shop count, end of period - Company-operated: 888 compared to the 882 average estimate based on five analysts.Total net - new shop openings: 48 compared to the 42 average estimate based on four analysts.Franchised new openings: 4 versus the four-analyst average estimate of 3.Company-operated same shop sales and transactions: 8.3% versus 6.8% estimated by four analysts on average.Company-operated new openings: 44 compared to the 39 average estimate based on four analysts.Revenues- Franchising and other: $40.82 million versus the seven-analyst average estimate of $38.68 million. The reported number represents a year-over-year change of +15.6%.Revenues- Company-operated shops: $510.03 million compared to the $485.52 million average estimate based on seven analysts. The reported number represents a change of +34% year over year.View all Key Company Metrics for Dutch Bros here>>>
Shares of Dutch Bros have returned -3.3% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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
Market News and Data brought to you by Benzinga APIs
Dutch Bros (BROS - Free Report) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +13.79%. A quarter ago, it was expected that this drive-thru coffee chain operator and franchisor would post earnings of $0.16 per share when it actually produced earnings of $0.16, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Dutch Bros, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $550.85 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.08%. This compares to year-ago revenues of $415.81 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Dutch Bros shares have added about 4.7% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for Dutch Bros?While Dutch Bros has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Dutch Bros was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.24 on $538.76 million in revenues for the coming quarter and $0.93 on $2.08 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Cava Group (CAVA - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11.
This Mediterranean restaurant chain is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +6.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Cava Group's revenues are expected to be $353.31 million, up 25.9% from the year-ago quarter.
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 reported financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Highlights
Opened 48 new shops, 44 of which were company-operated. Total revenues grew 32.5% to $550.9 million as compared to $415.8 million in the same period of 2025. Company-operated same shop sales1 increased 8.3% and company-operated same shop transactions increased 3.4% relative to the same period of 2025. Systemwide same shop sales1 increased 5.8% and systemwide same shop transactions increased 1.7% relative to the same period in 2025. Net income was $51.6 million as compared to $38.4 million in the same period of 2025. Adjusted EBITDA2 grew 27.8% to $113.7 million as compared to $89.0 million in the same period of 2025. Christine Barone, Chief Executive Officer and President of Dutch Bros, said, “Our second quarter performance reflects the strength of the Dutch Bros brand, powered by our differentiated people-led culture and our compelling value proposition that continues to resonate with customers. The success of our strategy was evident in the second quarter as we delivered our thirteenth consecutive quarter of positive same shop sales growth and our eighth consecutive quarter of same shop transaction growth. We also maintained exceptionally strong development momentum, while AUVs climbed to record levels. This performance is the result of years of foundational investments across the business, giving us tremendous confidence in our ability to continue growing Dutch Bros for the long-term.”
Josh Guenser, Chief Financial Officer of Dutch Bros, concluded, “Based on the performance so far this year and the recent acquisition from one of our Phoenix franchisees, we are increasing our full-year guidance on Total Revenues, Systemwide Same Shop Sales Growth and Adjusted EBITDA. 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.”
2026 Guidance3
Total revenues are now projected to be between approximately $2.1 billion and $2.13 billion. Same shop sales1 growth is now estimated to be in the range of 5% to 6%. Adjusted EBITDA4 is now estimated to be between $385 million and $390 million. Capital expenditures are now estimated to be between $350 million and $370 million. The item below remains unchanged.
Total system shop openings are estimated to be at least 185. 1
Same shop sales is defined in the section “Select Financial Metrics”.
2
This is a non-GAAP financial measure. Reconciliation of U.S. GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures”.
3
Excludes any impact from the Salad and Go™ transaction announced on August 5, 2026.
4
We have not reconciled guidance for Adjusted EBITDA to the corresponding U.S. GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliation to the corresponding U.S. GAAP financial measure is not available without unreasonable effort.
Conference Call and Webcast Today
Christine Barone, Chief Executive Officer and President, and Joshua Guenser, Chief Financial Officer, will host a conference call and webcast today at 5:00 p.m. Eastern Time (ET) to discuss financial results for the second quarter ended June 30, 2026.
Event: Second Quarter 2026 Conference Call and Webcast
Date: Wednesday, August 5, 2026
Time: 5:00 p.m. ET
Dial In: 1-201-493-6779
Webcast: https://investors.dutchbros.com under “Events & Presentations”.
The webcast will be archived shortly after the conference call has concluded. We will also publish earnings presentation slides related to these financial results on our website https://investors.dutchbros.com under “Events & Presentations”.
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 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 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 on Instagram, Facebook, X, and TikTok, and download the Dutch Bros app to earn points and score rewards!
Dutch Bros, our Windmill logo, Dutch Bros Rebel, and our other registered and common law trade names, trademarks and service marks are the property of Dutch Bros Inc. All other trademarks, trade names and service marks appearing in this press release are the property of their respective owners. Solely for convenience, the trademarks and trade names in this press release may be referred to without the ® and ™ symbols, but such references should not be construed as any indicator that their respective owners will not assert their rights thereto.
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 Dutch Bros’ growth trajectory, and Dutch Bros’ potential or assumed future results of operations, including updated guidance for 2026, new shop openings, estimated capital expenditures, business strategies, and potential sales and revenue growth. These statements are based on Dutch Bros’ current expectations and beliefs, as well as a number of assumptions concerning future events. When used in this press release, the words “intend,” “may,” “target,” “estimates,” “predict,” “project,” “expect,” “should,” “guidance,” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. 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 past growth being indicative of future results, whether Dutch Bros’ foundational investments result in continued growth for Dutch Bros, including increases in customer engagement and sales, the success of Dutch Bros’ food offering sales translating to sales of food offerings in other markets, changes in consumer preference due to new information or regulations regarding additives, diet and health or otherwise, acquisitions or partnerships not ultimately strengthening Dutch Bros’ competitive position, or achieving the intended goals of such acquisition or partnership, any problems that may arise in successfully integrating acquired businesses or assets, which may result in Dutch Bros not operating as effectively and efficiently as expected or divert management from their primary responsibilities, general economic conditions, changes in general consumer discretionary spending, including due to higher gas prices, inflation or lack of consumer confidence, commodity inflation, the ability to navigate evolving macroeconomic conditions, the effects of disruption between the U.S. and its trading partners due to military conflicts, tariffs or other policies, disruptions in our supply chain, increased labor costs, ability to hire and retain employees, the availability of suitable new shop sites and our ability to negotiate acceptable agreements regarding the new shop sites, and other risks, including those described in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 13, 2026, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 filed with the SEC on May 6, 2026, and in our future reports to be filed with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. 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 INC.
Condensed Consolidated Statements of Operations
Three Months Ended
June 30,
Six Months Ended
June 30,
(in thousands, except per share amounts; unaudited)
2026
2025
2026
2025
Revenues
Company-operated shops
$
510,031
$
380,500
$
939,088
$
706,921
Franchising and other
40,820
35,313
76,175
64,044
Total revenues
550,851
415,813
1,015,263
770,965
Costs and Expenses
Cost of sales
399,795
295,769
756,731
560,928
Selling, general and administrative
80,651
65,385
153,827
124,306
Total costs and expenses
480,446
361,154
910,558
685,234
Income from operations
70,405
54,659
104,705
85,731
Other expense
Interest expense, net
(7,038
)
(7,076
)
(14,258
)
(14,191
)
Other income (expense), net
861
(1,983
)
786
(2,001
)
Total other expense
(6,177
)
(9,059
)
(13,472
)
(16,192
)
Income before income taxes
64,228
45,600
91,233
69,539
Income tax expense
12,623
7,243
15,964
8,702
Net income
$
51,605
$
38,357
$
75,269
$
60,837
Less: Net income attributable to non-controlling interests
14,195
12,733
21,762
19,860
Net income attributable to Dutch Bros Inc.
$
37,410
$
25,624
$
53,507
$
40,977
Net income per share of Class A common stock:
Basic
$
0.28
$
0.20
$
0.41
$
0.33
Diluted
$
0.28
$
0.20
$
0.41
$
0.33
Weighted-average shares of Class A common stock outstanding:
Basic
134,494
126,390
130,837
123,615
Diluted
134,765
126,830
131,263
124,178
DUTCH BROS INC.
Company-Operated Shops Results
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
(dollars in thousands; unaudited)
$
%
$
%
$
%
$
%
Company-operated shops revenue
510,031
100.0
380,500
100.0
939,088
100.0
706,921
100.0
Beverage, food and packaging costs
133,108
26.1
96,468
25.3
245,430
26.1
177,847
25.2
Labor costs
129,460
25.4
101,270
26.6
241,765
25.8
190,709
27.0
Occupancy and other costs
83,085
16.3
59,984
15.8
159,870
17.0
113,911
16.1
Pre-opening costs
8,408
1.6
4,542
1.2
14,749
1.6
10,153
1.4
Depreciation and amortization
32,669
6.4
25,684
6.8
68,191
7.2
50,251
7.1
Company-operated shops costs and expenses
386,730
75.8
287,948
75.7
730,005
77.7
542,871
76.8
Company-operated shops gross profit
123,301
24.2
92,552
24.3
209,083
22.3
164,050
23.2
Company-operated shops contribution1
155,970
30.6
118,236
31.1
277,274
29.5
214,301
30.3
DUTCH BROS INC.
Summary Cash Flows Data
Six Months Ended
June 30,
(in thousands; unaudited)
2026
2025
Net cash provided by operating activities
$
196,933
$
126,781
Net cash used in investing activities
(149,048
)
(99,731
)
Net cash used in financing activities
(48,665
)
(65,989
)
Net decrease in cash and cash equivalents
$
(780
)
$
(38,939
)
Cash and cash equivalents at beginning of period
269,404
293,354
Cash and cash equivalents at end of period
$
268,624
$
254,415
DUTCH BROS INC.
Condensed Consolidated Balance Sheets
(in thousands; unaudited)
June 30,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents
$
268,624
$
269,404
Accounts receivable, net
18,871
18,387
Inventories, net
41,253
48,917
Prepaid expenses and other current assets
23,745
20,670
Total current assets
352,493
357,378
Property and equipment, net
905,241
824,502
Lease right-of-use assets, net
984,000
855,339
Deferred income tax assets, net
1,111,070
946,571
Other long-term assets
23,885
25,524
Total assets
$
3,376,689
$
3,009,314
Liabilities and Equity
Current liabilities:
Accounts payable
$
44,319
$
37,625
Other current liabilities
123,394
99,173
Deferred revenue
47,160
55,658
Current portion of tax receivable agreements liability
686
7,696
Current portion of lease liabilities
41,639
36,466
Current portion of long-term debt
3,883
3,881
Total current liabilities
261,081
240,499
Deferred revenue, net of current portion
6,524
8,918
Lease liabilities, net of current portion
967,206
852,380
Long-term debt, net of current portion
194,600
196,295
Tax receivable agreements liability, net of current portion
972,264
813,353
Total liabilities
2,401,675
2,111,445
Equity:
Common stock
1
1
Additional paid in capital
644,589
581,261
Accumulated other comprehensive income
47
48
Retained earnings
153,015
99,508
Total stockholders' equity attributable to Dutch Bros Inc.
797,652
680,818
Non-controlling interests
177,362
217,051
Total equity
975,014
897,869
Total liabilities and equity
$
3,376,689
$
3,009,314
DUTCH BROS INC.
Select Financial Metrics
Three Months Ended
June 30,
Six Months Ended
June 30,
(dollars in thousands; unaudited)
2026
2025
2026
2025
Shop count, beginning of period
Company-operated
844
695
811
670
Franchised
333
317
325
312
1,177
1,012
1,136
982
Company-operated new openings
44
30
77
55
Franchised new openings
4
1
12
6
Shop count, end of period
Company-operated
888
725
888
725
Franchised
337
318
337
318
Total shop count
1,225
1,043
1,225
1,043
Systemwide AUV1
N/A
N/A
$
2,193
$
2,053
Company-operated shops AUV1
N/A
N/A
$
2,164
$
1,982
Systemwide same shop sales1, 2
5.8
%
6.1
%
6.9
%
5.3
%
Ticket
4.1
%
2.4
%
3.6
%
3.0
%
Transactions
1.7
%
3.7
%
3.3
%
2.3
%
Company-operated same shop sales1
8.3
%
7.8
%
9.3
%
7.2
%
Ticket
4.9
%
1.9
%
4.3
%
2.6
%
Transactions
3.4
%
5.9
%
5.0
%
4.6
%
Systemwide sales2
$
703,320
$
571,273
$
1,312,919
$
1,060,945
Company-operated operating weeks3
11,189
9,184
21,682
17,921
Franchising and other operating weeks3
4,353
4,119
8,583
8,130
Dutch Rewards transactions as a percentage of total transactions4
73
%
72
%
74
%
72
%
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
(dollars in thousands; unaudited)
$
%
$
%
$
%
$
%
Company-operated shops revenues
510,031
100.0
380,500
100.0
939,088
100.0
706,921
100.0
Company-operated shops gross profit
123,301
24.2
92,552
24.3
209,083
22.3
164,050
23.2
Company-operated shops contribution5
155,970
30.6
118,236
31.1
277,274
29.5
214,301
30.3
Selling, general, and administrative expenses
80,651
14.6
65,385
15.7
153,827
15.2
124,306
16.1
Adjusted selling, general, and administrative expenses5
72,491
13.2
58,709
14.1
138,003
13.6
112,206
14.6
Net income
51,605
9.4
38,357
9.2
75,269
7.4
60,837
7.9
Adjusted EBITDA5
113,714
20.6
89,003
21.4
193,087
19.0
151,909
19.7
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Systemwide shop base
982
831
982
794
Company-operated shop base
670
542
670
510
2
Systemwide sales and systemwide same shop sales are operating measures that include sales at company-operated shops and sales at franchised shops during the comparable periods presented. Franchise sales represent sales at all franchise shops and are revenues to our franchisees. We do not record franchise sales as revenues; however, our royalty revenues and advertising fund contributions are calculated based on a percentage of franchise sales. As these metrics include sales reported to us by our non-consolidated franchise partners, these metrics should be considered as a supplement to, not a substitute for, our results as reported under U.S. GAAP. Management uses these metrics as indicators of our system’s overall financial health, growth and future expansion prospects.
3
Company-operated and franchise shops operating weeks are calculated based on the number of operating days for the shop base and dividing by 7. Our shop base is defined as shops opened as of the end date of the periods presented. The operating weeks calculations reflect re-acquired franchises. Management uses these metrics as indicators of our system’s overall financial health, growth and future expansion prospects.
4
Dutch Rewards is our digitally-based rewards program available exclusively through the Dutch Rewards app. Management uses this metric as an indicator of customer loyalty adoption of our Dutch Rewards app and future promotional plans.
5
Reconciliation of U.S. GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures”.
Non-GAAP Financial Measures
In addition to disclosing financial results in accordance with U.S. GAAP, this press release contains references to the non-GAAP financial measures below. We believe these non-GAAP financial measures provide investors with useful supplemental information about our operating performance, enable comparison of financial trends and results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business and measuring our performance.
Our non-GAAP financial measures reflect adjustments based on one or more of the following items, as well as the related income tax effects where applicable. Income tax effects have been calculated based on the combined total non-GAAP adjustments using our total effective tax rate. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP, and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated.
Company-operated shops contribution (in dollars and as a percentage of revenue)
Definition and/or calculation
Company-operated shops segment gross profit, before company-operated shops depreciation and amortization.
Usefulness to management and investors
This non-GAAP measure is used by our management in making performance decisions without the impact of non-cash depreciation and amortization charges. This is a standard metric used across our industry by investors.
EBITDA, Adjusted EBITDA (in dollars and as a percentage of revenue)
EBITDA — definition and/or calculation
Net income before interest expense (net of interest income), income tax expense, and depreciation and amortization expense.
Adjusted EBITDA — definition and/or calculation
Defined as EBITDA (as defined above), excluding equity-based compensation, expenses associated with credit facility refinancing, acquisition-related costs, TRA remeasurements, and organization realignment and restructurings costs.
Usefulness to management and investors
These non-GAAP measures are supplemental operating performance measures we believe facilitate comparisons to historical performance and competitors’ operating results. We believe these non-GAAP measures presented provide investors with a supplemental view of our operating performance that facilitates analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of our ongoing operating performance.
Adjusted selling, general, and administrative (in dollars and as a percentage of revenue)
Definition and/or calculation
Selling, general, and administrative expenses, excluding depreciation and amortization, equity-based compensation, acquisition-related costs, and organization realignment and restructurings costs.
Usefulness to management and investors
This non-GAAP measure is used as a supplemental measure of operating performance that we believe is useful to evaluate our performance period over period and relative to our competitors. We believe the non-GAAP measure presented provides investors with a supplemental view of our operating performance that facilitates analysis and comparisons of our ongoing business operations because it excludes items that may not be indicative of our ongoing operating performance.
Adjusted net income
Definition and/or calculation
Net income, excluding equity-based compensation, expenses associated with credit facility refinancing, acquisition-related costs, TRA remeasurements, organization realignment and restructurings costs, and income tax effects of items excluded from net income.
Usefulness to management and investors
This non-GAAP measure is used as a supplemental measure of operating performance that we believe is useful to evaluate our performance period over period and relative to our competitors. We believe this measure facilitates a better comparison with other companies that have different organizational and tax structures, as well as comparisons period over period.
Adjusted fully exchanged weighted-average shares of diluted common stock outstanding
Definition and/or calculation
Weighted-average shares of Class A common stock outstanding - basic with addition of dilutive impacts of restricted stock units, as well as the assumed exchange of all of the Dutch Bros OpCo Class A common units not held by Dutch Bros Inc. for Dutch Bros Inc. Class A common stock.
Usefulness to management and investors
This non-GAAP measure is used as a supplemental measure of operating performance that we believe is useful to evaluate our performance period over period and relative to our competitors. By adding in the assumed exchange of all of the outstanding Dutch Bros OpCo Class A common units not held by Dutch Bros Inc. for Dutch Bros Inc. Class A common stock, we believe this measure facilitates a better comparison with other companies that have different organizational and tax structures, as well as comparisons period over period.
Adjusted net income per fully exchanged share of diluted common stock
Definition and/or calculation
Net income per share of Class A common stock - diluted, excluding per share impacts of equity-based compensation, expenses associated with credit facility refinancing, acquisition-related costs, TRA remeasurements, organization realignment and restructurings costs, income tax effects of items excluded from net income, and removal of per share impacts of controlling and non-controlling interests.
Usefulness to management and investors
This non-GAAP measure is used as a supplemental measure of operating performance that we believe is useful to evaluate our performance period over period and relative to our competitors. By assuming the full exchange of all of the outstanding Dutch Bros OpCo Class A common units not held by Dutch Bros Inc. for Dutch Bros Inc. Class A common stock and related net income adjustments, we believe this measure facilitates a better comparison with other companies that have different organizational and tax structures, as well as comparisons period over period.
Non-GAAP adjustments
Below are the definitions of the non-GAAP adjustments that are used in the calculation of our non-GAAP measures, as described above.
Equity-based compensation
Non-cash expenses related to the grant and vesting of stock awards, including restricted stock units and performance restricted stock units in Dutch Bros Inc. to certain eligible employees.
Expenses associated with 2022 credit facility refinancing
Costs incurred as a result of refinancing our credit facility in May 2025, including write-off of unamortized loan costs related to the amendment and restatement of our 2022 Credit Facility, and intermediary fees and other costs related to our 2025 Credit Facility.
Acquisition-related costs
Costs incurred in connection with our purchase of the franchise rights and assets from a franchisee.
TRAs remeasurements
(Gain) loss impacts related to adjustments of our TRAs liabilities.
Organization realignment and restructurings
Fees and costs incurred in connection with our comprehensive initiatives to develop and implement a long-term strategy involving changes to our organizational structure to support our growth.
Dilutive effects of restricted stock awards and units
Addition of incremental shares of restricted stock units calculated under the treasury stock method, when they are dilutive for the calculation of weighted-average shares on a non-GAAP basis.
Assumed exchange of weighted-average LLC interests for shares of Class A common stock
Weighted-average of all outstanding Dutch Bros OpCo Class A common units not held by Dutch Bros Inc. that are assumed to be exchanged for Dutch Bros Inc. Class A common stock.
Supplemental Reconciliations of U.S. GAAP Actuals to Non-GAAP Actuals
Following are the reconciliations of the most comparable GAAP financial measure to non-GAAP financial measure. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP, and the reconciliations from U.S. GAAP to Non-GAAP measures should be carefully evaluated. Please refer to “Non-GAAP Financial Measures” in this press release for a detailed explanation of the adjustments made to the comparable U.S. GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
(dollars in thousands; unaudited)
$
%
$
%
$
%
$
%
Company-operated shops gross profit
123,301
24.2
92,552
24.3
209,083
22.3
164,050
23.2
Depreciation and amortization
32,669
6.4
25,684
6.8
68,191
7.2
50,251
7.1
Company-operated shops contribution
155,970
30.6
118,236
31.1
277,274
29.5
214,301
30.3
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
(dollars in thousands; unaudited)
$
%
$
%
$
%
$
%
Net income
51,605
9.4
38,357
9.2
75,269
7.4
60,837
7.9
Depreciation and amortization
35,481
6.4
27,893
6.7
73,736
7.3
54,323
7.0
Interest expense, net
7,038
1.3
7,076
1.8
14,258
1.4
14,191
1.9
Income tax expense
12,623
2.3
7,243
1.7
15,964
1.6
8,702
1.1
EBITDA
106,747
19.4
80,569
19.4
179,227
17.7
138,053
17.9
Equity-based compensation
6,879
1.2
4,671
1.1
12,157
1.2
8,865
1.1
Expenses associated with 2022 credit facility refinancing
—
—
2,000
0.5
—
—
2,000
0.3
Acquisition-related costs
309
0.1
—
—
309
—
—
—
TRAs remeasurements
(437)
(0.1)
—
—
(437)
—
—
—
Organization realignment and restructurings
216
—
1,763
0.4
1,831
0.1
2,991
0.4
Adjusted EBITDA
113,714
20.6
89,003
21.4
193,087
19.0
151,909
19.7
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
(dollars in thousands; unaudited)
$
%
$
%
$
%
$
%
Selling, general, and administrative
80,651
14.6
65,385
15.7
153,827
15.2
124,306
16.1
Depreciation and amortization
(1,656)
(0.3)
(817)
(0.2)
(3,086)
(0.3)
(1,219)
(0.2)
Equity-based compensation
(5,979)
(1.0)
(4,096)
(1.0)
(10,598)
(1.2)
(7,890)
(0.9)
Acquisition-related costs
(309)
(0.1)
—
—
(309)
—
—
—
Organization realignment and restructurings
(216)
—
(1,763)
(0.4)
(1,831)
(0.1)
(2,991)
(0.4)
Adjusted selling, general, and administrative
72,491
13.2
58,709
14.1
138,003
13.6
112,206
14.6
Three Months Ended
June 30,
Six Months Ended
June 30,
(in thousands; unaudited)
2026
2025
2026
2025
Net income
$
51,605
$
38,357
$
75,269
$
60,837
Equity-based compensation
6,879
4,671
12,157
8,865
Expenses associated with 2022 credit facility refinancing
—
2,000
—
2,000
Acquisition-related costs
309
—
309
—
TRAs remeasurements
(437
)
—
(437
)
—
Organization realignment and restructuring
216
1,763
1,831
2,991
Income tax effects
(232
)
(1,280
)
(2,225
)
(4,381
)
Adjusted net income
$
58,340
$
45,511
$
86,904
$
70,312
Three Months Ended
June 30,
Six Months Ended
June 30,
(in thousands, except per share amounts; unaudited)
2026
2025
2026
2025
Weighted-average shares of Class A common stock outstanding - basic
134,494
126,390
130,837
123,615
Dilutive effects of restricted stock units
271
440
426
563
Weighted-average shares of Class A common stock outstanding - diluted
134,765
126,830
131,263
124,178
Assumed exchange of weighted-average Dutch Bros OpCo Class A common units for shares of Dutch Bros Inc. Class A common stock
43,248
51,086
46,844
53,766
Adjusted fully exchanged weighted-average shares of common stock outstanding - diluted
178,013
177,916
178,107
177,944
Net income per share of Class A common stock - diluted
$
0.28
$
0.20
$
0.41
$
0.33
Controlling and non-controlling interest adjustments
0.01
0.02
0.01
0.01
Equity-based compensation
0.04
0.03
0.07
0.05
Expenses associated with 2022 credit facility refinancing
—
0.01
—
0.01
Acquisition-related costs
—
—
—
—
TRAs remeasurements
—
—
—
—
Organization realignment and restructurings
—
0.01
0.01
0.02
Income tax effects
—
(0.01
)
(0.01
)
(0.02
)
Adjusted net income per fully exchanged share of diluted common stock
In its upcoming report, Dutch Bros (BROS - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.29 per share, reflecting an increase of 11.5% compared to the same period last year. Revenues are forecasted to be $524.2 million, representing a year-over-year increase of 26.1%.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some Dutch Bros metrics that are commonly tracked and projected by analysts on Wall Street.
The average prediction of analysts places 'Revenues- Franchising and other' at $38.68 million. The estimate indicates a change of +9.5% from the prior-year quarter.
Analysts expect 'Revenues- Company-operated shops' to come in at $485.52 million. The estimate indicates a year-over-year change of +27.6%.
Analysts predict that the 'System same shop sales and transactions' will reach 5.4%. Compared to the current estimate, the company reported 6.1% in the same quarter of the previous year.
The consensus among analysts is that 'Shop count, end of period - Total shop count' will reach 1,218 . The estimate compares to the year-ago value of 1,043 .
It is projected by analysts that the 'Shop count, end of period - Franchised' will reach 336 . Compared to the current estimate, the company reported 318 in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Shop count, end of period - Company-operated' of 882 . Compared to the present estimate, the company reported 725 in the same quarter last year.
The combined assessment of analysts suggests that 'Total net - new shop openings' will likely reach 42 . Compared to the present estimate, the company reported 31 in the same quarter last year.
Based on the collective assessment of analysts, 'Company-operated same shop sales and transactions' should arrive at 6.8%. The estimate is in contrast to the year-ago figure of 7.8%.
Analysts' assessment points toward 'Company-operated new openings' reaching 39 . Compared to the present estimate, the company reported 30 in the same quarter last year.
View all Key Company Metrics for Dutch Bros here>>>
Shares of Dutch Bros have experienced a change of -4.6% in the past month compared to the +1.7% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), BROS is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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%.
Coffee chain operator Dutch Bros (BROS +0.61%) is scheduled to report second-quarter 2026 results after the closing bell on Wednesday.
It's a polarizing stock with a "strong buy" consensus from Wall Street analysts but a sizable short-seller contingent. At the mid-July checkpoint, nearly 35% of Dutch Bros shares were on loan to bearish investors. Due to its volatile market profile, Dutch Bros' stock often makes a big move after earnings reports. Over the last two years, it has posted next-day moves ranging from a 20% price drop to a 29% jump.
Is the stock poised for another surge next week, or is it better to wait and see from the sidelines? Let's take a look.
Image source: The Motley Fool.
The bull case Dutch Bros has a proven model built on fanatical customer loyalty and a people-first culture that's hard to replicate. With fewer than 1,200 shops today against a total addressable market (TAM) of at least 7,000 locations, the company has a long runway for unit growth.
The stated goal of reaching 2,029 shops in 2029 is just a milestone on a longer growth journey.
Q1 showed 30% revenue growth and 8% comparable store growth. The Dutch Rewards program (involving 74% of transactions) gives management strong visibility and powerful customer engagement tools. Further catalysts include untapped pricing power, a growing opportunity to gain market share in the morning rush, and nascent food products.
If Dutch Bros' execution stays on track, the current valuation could prove justified or even cheap by years of compounding growth.
The bear case The bear case isn't that Dutch Bros is a bad business. The stock already reflects an optimistic scenario.
With triple-digit P/E and price-to-free-cash-flow multiples, rising coffee prices, tougher year-over-year comparisons ahead, and well-funded competitors entering its core categories, there's not much margin for error at current prices.
Today's Change
(
0.61
%) $
0.40
Current Price
$
65.83
What to do before this report I love this stock, but I'm not buying or selling before the Aug. 5 event. Investing is more Tour de France than velodrome sprint. Missing one breakaway won't decide the race, if you get my drift.
With 35% short interest and a history of double-digit post-earnings swings, waiting for Q2 clarity looks like the right idea. Win or lose on Wednesday, the same growth story will still be there on Aug. 6 -- and you'll understand it better.
Dutch Bros (BROS +1.27%) is an exciting coffee chain company that's quickly spreading across the country and attracting fans to its assortment of exclusive, customized beverages. It's been reporting healthy growth and profits, and it sees a long growth runway.
Here's one green flag for its second-quarter earnings on Aug. 5.
Image source: Dutch Bros.
Dutch Bros' same-shop sales growth has been accelerating, and the company is well positioned to report another quarter of robust growth. Here's how it's looked over the past five quarters.
The same-shop sales piece is a critical measure of the company's short-term health and long-term viability. Management sees the opportunity to open up to 7,000 stores, or to expand nearly sevenfold from today's store count. But all growth coming from new stores is a warning sign, since stores can't continue to grow unless they're generating loyalty and bringing in new customers. That's measured by same-store sales growth.
Today's Change
(
1.27
%) $
0.82
Current Price
$
65.43
The company is investing in building its brand through large marketing campaigns as it enters new markets, creating a network effect in which each store becomes more prominent as new stores open and more people discover the brand. When Dutch Bros releases its second-quarter report, look out for same-store sales growth.
Jennifer Saibil has positions in Dutch Bros. The Motley Fool has positions in and recommends Dutch Bros. The Motley Fool has a disclosure policy.
As investors look for growth opportunities in 2026, the contrast between a rapidly expanding coffee chain and a plant-based pioneer undergoing a deep restructuring offers a unique choice between Dutch Bros (BROS +0.45%) and Beyond Meat (BYND -1.55%).
Dutch Bros is a high-growth beverage company focused on drive-thru convenience and a cult-like culture, while Beyond Meat produces plant-based protein alternatives for global markets. They are compared here as two different paths within the evolving consumer landscape.
The case for Dutch BrosDutch Bros operates over 1,136 shops as of Dec. 31, 2025, specializing in hand-crafted hot and cold beverages like its proprietary Rebel energy drinks. It focuses on a high-growth drive-thru model that has quickly gained traction among retail stocks in the competitive quick-service space. Expansion is currently a major priority, highlighted by the 2026 acquisition of the Phoenix East Valley franchise and the purchase of Clutch Coffee for conversion into new locations.
In FY 2025, revenue reached nearly $1.6 billion, representing growth of roughly 28% compared to the previous year. The company reported net income of approximately $117.3 million, which was a significant increase from the $66.5 million reported in 2024. This growth trend reflects the company's ability to scale its shop count while maintaining a net margin of close of 7.2%.
As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 1.6x. This ratio measures total debt against shareholder equity, indicating the company uses a mix of debt and equity to fund its growth. The current ratio, which measures the ability to pay short-term obligations, was nearly 1.5x. Free cash flow, or cash from operations minus capital expenditures, was approximately $54.4 million for the year.
The case for Beyond MeatBeyond Meat produces plant-based meat products available in more than 80 countries through both retail and foodservice channels. In early 2026, the company partnered with Big Geyser to distribute its new functional beverage line, marking a strategic expansion beyond its traditional protein focus. The company has also streamlined its operations by exiting the Chinese market and consolidating its manufacturing footprint to reduce costs.
In FY 2025, revenue was nearly $275.5 million, representing a decline of roughly 15.6% year-over-year as the plant-based meat category faced headwinds. Despite the lower revenue, the company reported net income of approximately $219.9 million, resulting in a net margin of close to 79.8%. This high net income figure was influenced by a $548.7 million non-cash gain on debt restructuring.
As of December 2025, the company operated with a significant shareholder deficit, meaning total liabilities exceeded total assets. The current ratio, measuring short-term liquidity, was approximately 4.6x, indicating a strong position to meet immediate liabilities. Free cash flow, which is cash from operations minus capital expenditures, was nearly negative $172.8 million as the company continued to invest in its business turnaround.
Risk profile comparisonDutch Bros faces risks related to commodity volatility, as its profitability depends heavily on the price of coffee, dairy, and syrups. It also faces intense competition from established giants like Starbucks and McDonald's for both customer traffic and prime real estate. Furthermore, with roughly 65% of its shops in the Western U.S., the company is vulnerable to regional economic shifts or extreme weather events.
Beyond Meat deals with a persistent decline in consumer demand for plant-based meat as some shoppers return to animal-based proteins. The business relies on a limited number of suppliers for key ingredients like pea protein and avocado oil, making it sensitive to supply chain disruptions. Additionally, the company faces stiff competition from large food conglomerates such as Tyson Foods and Nestle, which have significant distribution advantages.
Valuation comparisonDutch Bros carries a higher sales multiple reflecting its rapid growth, while Beyond Meat trades at a lower valuation following several years of declining revenue and restructuring.
MetricDutch BrosBeyond MeatForward P/E70.6xN/AP/S ratio6.8x1.0xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
I'd go with Dutch Bros, and this one isn't close. Beyond Meat is fighting for its life right now. Revenue has been shrinking for several quarters and the stock has traded near delisting territory. The company is in the middle of a painful restructuring that includes massive layoffs and a retreat from international markets. The pivot into protein beverages might eventually find an audience, but right now this is a company in survival mode, not growth mode.
This is a really exciting time for Dutch Bros. Revenue is surging and same-store sales are climbing. Management raised its full-year outlook after a strong first quarter. The company is opening new shops at an aggressive pace, rolling out a food program, and expanding into markets across the country that have never had a Dutch Bros location. I love that the brand has a loyal following that keeps driving traffic higher.
Dutch Bros has the brand momentum, the growth trajectory, and the financial footing to be a solid long-term hold. Beyond Meat needs to prove it can survive before it can think about thriving.
One of the arguably surprising growth stories in recent years has been Dutch Bros (BROS +2.64%). The beverage chain is well into a regional-to-national expansion as it seeks to compete with Starbucks and other coffee shops.
Moreover, as Starbucks is in the process of revamping itself, Dutch Bros is on a full-steam-ahead path to growth. That likely means the coffee stock could double in value by the end of the decade, and here's why.
Image source: Dutch Bros.
The path to a double One aspect of Dutch Bros' growth is glaringly obvious because its footprint is on track to nearly double by 2029.
The company has outlined a plan to grow to 2,029 locations by 2029. As of the end of the first quarter of 2026, it operated 1,177 shops in 25 states.
That means an approximate 72% increase in the number of shops. Fortunately, that is likely achievable since it operates in tiny, drive-thru locations that it can build relatively quickly.
The remaining growth will come from its rising popularity. Dutch Bros increased same-store sales by 8.3% year over year. Also, transaction growth came to 5.1% during the same period.
Today's Change
(
2.64
%) $
1.69
Current Price
$
65.69
Dutch Bros has overcome intense competition in its industry by doing things differently. For one, it designed its drive-thru model for rapid orders, using staff to take orders in the line and accept payments ahead of time, increasing the number of cars that it can serve.
Additionally, its employees emphasize enthusiasm and speed, improving the customer experience. Thus, customers tend to visit for that interaction. Also, the proprietary energy drinks they order and the toppings and syrups they often buy tend to command high margins and premium pricing, which helps Dutch Bros' top line.
Knowing that, it is little wonder the company grew by 31% in Q1. Also, the fact that revenue grew 28% during 2025 shows that the growth is not a one-time event.
Indeed, that resulted in only a profit increase of just 5% in Q1. Nonetheless, Dutch Bros is investing heavily in growing its business, which should accelerate profit growth in the longer term.
The lower profit makes the 101 P/E ratio a misleading valuation measurement. However, if they compare Dutch Bros' price-to-sales (P/S) ratio to that of Starbucks, investors will likely become more comfortable with paying a premium.
BROS PS Ratio data by YCharts
Considering its growing footprint and increased popularity, Dutch Bros stock should double in value over the rest of the decade.
Although expansion costs are high in the near term, the added footprint should cover most of the needed increase in revenue. The remainder should come as Dutch Bros builds a following in its local markets, which should keep same-store sales rising.
Thus, while a doubling of the stock may not be the most surprising development given its rapid expansion, its business model could make it the best investment opportunity in the eyes of many investors.
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.
Entropy Technologies LP acquired a new stake in Dutch Bros Inc. (NYSE:BROS – Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 41,686 shares of the company’s stock, valued at approximately $2,112,000.
Other institutional investors and hedge funds have also made changes to their positions in the company. Alyeska Investment Group L.P. acquired a new stake in shares of Dutch Bros during the fourth quarter worth about $113,880,000. Westfield Capital Management Co. LP acquired a new position in Dutch Bros in the 4th quarter valued at about $108,948,000. Norges Bank purchased a new stake in Dutch Bros during the 4th quarter valued at approximately $96,951,000. Balyasny Asset Management L.P. raised its stake in Dutch Bros by 196.0% during the 3rd quarter. Balyasny Asset Management L.P. now owns 1,817,201 shares of the company’s stock valued at $95,112,000 after acquiring an additional 1,203,338 shares during the last quarter. Finally, Interval Partners LP purchased a new stake in Dutch Bros during the 4th quarter valued at approximately $57,276,000. 85.54% of the stock is owned by hedge funds and other institutional investors.
Dutch Bros Stock Performance Shares of BROS stock opened at $64.01 on Monday. The stock has a fifty day moving average price of $63.20 and a 200 day moving average price of $57.41. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.19 and a current ratio of 1.33. The stock has a market cap of $11.18 billion, a PE ratio of 100.02, a P/E/G ratio of 1.94 and a beta of 2.31. Dutch Bros Inc. has a 1 year low of $44.58 and a 1 year high of $74.65.
Dutch Bros (NYSE:BROS – Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported $0.16 earnings per share for the quarter, meeting the consensus estimate of $0.16. Dutch Bros had a return on equity of 9.42% and a net margin of 4.61%.The company had revenue of $464.41 million for the quarter, compared to analyst estimates of $449.69 million. During the same quarter in the prior year, the company earned $0.14 earnings per share. Dutch Bros’s revenue was up 30.7% compared to the same quarter last year. Sell-side analysts forecast that Dutch Bros Inc. will post 0.84 earnings per share for the current fiscal year.
Insider Buying and Selling In related news, Chairman Travis Boersma sold 750,000 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $63.02, for a total value of $47,265,000.00. Following the sale, the chairman directly owned 2,410,800 shares of the company’s stock, valued at approximately $151,928,616. This represents a 23.73% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Dm Individual Aggregator, Llc sold 261,055 shares of the firm’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $63.02, for a total transaction of $16,451,686.10. Following the transaction, the insider owned 2,410,800 shares of the company’s stock, valued at $151,928,616. This trade represents a 9.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 4,086,245 shares of company stock worth $243,021,771 in the last three months. Corporate insiders own 38.90% of the company’s stock.
Analyst Ratings Changes A number of analysts have weighed in on the company. Citigroup increased their price objective on Dutch Bros from $84.00 to $85.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Weiss Ratings reissued a “hold (c)” rating on shares of Dutch Bros in a report on Friday, July 17th. Oppenheimer upped their price target on Dutch Bros from $72.00 to $82.00 and gave the stock an “outperform” rating in a research note on Tuesday, June 30th. TD Cowen reaffirmed a “buy” rating and set a $73.00 price target on shares of Dutch Bros in a report on Wednesday, June 10th. Finally, Telsey Advisory Group began coverage on shares of Dutch Bros in a research report on Wednesday, April 8th. They issued an “outperform” rating and a $66.00 price objective on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $77.50.
Check Out Our Latest Research Report on Dutch Bros
About Dutch Bros (Free Report)
Dutch Bros Coffee, trading on the NYSE under the ticker BROS, is an American drive-through coffee chain known for its quick-service model and community-focused brand. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company began as a single coffee stand and has since expanded its footprint across numerous U.S. markets. Dutch Bros specializes in handcrafted espresso drinks, drip coffee, cold brew, energy drinks, smoothies, teas, and a variety of signature “Dutch Freeze” and “Dutch Frost” blended beverages.
The company operates a mix of company-owned and franchised locations, placing a strong emphasis on speed and customer engagement.
See Also Five stocks we like better than Dutch Bros RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit
Receive News & Ratings for Dutch Bros Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dutch Bros and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEEverest Financial Group LLC Purchases Shares of 9,484 Dimensional US Marketwide Value ETF $DFUV
NEXT HEADLINE »Bradley Foster & Sargent Inc. CT Has $3.70 Million Position in SPDR Portfolio S&P 600 Small Cap ETF $SPSM
For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Dutch Bros (BROS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Dutch Bros is one of 187 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Dutch Bros is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for BROS' full-year earnings has moved 3.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, BROS has moved about 6.1% on a year-to-date basis. At the same time, Retail-Wholesale stocks have lost an average of 0.1%. This means that Dutch Bros is performing better than its sector in terms of year-to-date returns.
Williams-Sonoma (WSM - Free Report) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 24.5%.
Over the past three months, Williams-Sonoma's consensus EPS estimate for the current year has increased 2%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Dutch Bros is a member of the Retail - Restaurants industry, which includes 36 individual companies and currently sits at #209 in the Zacks Industry Rank. On average, stocks in this group have lost 1.5% this year, meaning that BROS is performing better in terms of year-to-date returns.
Williams-Sonoma, however, belongs to the Retail - Home Furnishings industry. Currently, this 10-stock industry is ranked #80. The industry has moved -6.1% so far this year.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Dutch Bros and Williams-Sonoma as they attempt to continue their solid performance.
TEMPE, Ariz.--(BUSINESS WIRE)--Dutch Bros Inc. (“Dutch Bros”) (NYSE: BROS), one of the fastest-growing brands in the U.S. quick service beverage industry, will host a conference call and webcast to review financial results for the second quarter, which ended on June 30, 2026. The conference call and webcast will take place on Wednesday, August 5, 2026 at 5:00 p.m. Eastern Time (ET). Dutch Bros will report financial results for the second quarter 2026 after the market close that same day. Event:.
Dutch Bros (BROS - Free Report) ended the recent trading session at $66.25, demonstrating a -3.09% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.59%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
Shares of the drive-thru coffee chain operator and franchisor witnessed a loss of 3.34% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.41%, and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of Dutch Bros in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.29, reflecting a 11.54% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $522.89 million, showing a 25.75% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.93 per share and a revenue of $2.08 billion, representing changes of +22.37% and +26.87%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Dutch Bros. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.9% higher. Dutch Bros is currently a Zacks Rank #2 (Buy).
With respect to valuation, Dutch Bros is currently being traded at a Forward P/E ratio of 73.33. This represents a premium compared to its industry average Forward P/E of 20.71.
Investors should also note that BROS has a PEG ratio of 1.99 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 192, positioning it in the bottom 22% of all 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.
To follow BROS in the coming trading sessions, be sure to utilize Zacks.com.
