Dutch Bros (NYSE:BROS) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Dutch Bros beat quarterly expectations: EPS came in at $0.33 versus the $0.29 consensus, while revenue reached $550.85 million, up 32.5% year over year.
• The company raised its 2026 outlook: Dutch Bros now expects $2.10 billion–$2.13 billion in revenue, $385 million–$390 million in adjusted EBITDA, 5%–6% system same-shop sales growth, and at least 185 new locations.
• Expansion remains strong but costs are rising: The company opened 48 shops in the quarter and is pursuing additional acquisitions, while higher coffee, food-program, and occupancy costs are expected to pressure margins in 2026.

Dutch Bros (NYSE:BROS - Get Free Report) released its earnings results on Wednesday. The company reported $0.33 EPS for the quarter, topping the consensus estimate of $0.29 by $0.04, FiscalAI reports. The firm had revenue of $550.85 million for the quarter, compared to the consensus estimate of $525.38 million. Dutch Bros had a net margin of 4.61% and a return on equity of 9.42%. The company's quarterly revenue was up 32.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.26 earnings per share.

Here are the key takeaways from Dutch Bros' conference call:

• Strong Q2 performance: Revenue rose 32% to $551 million, adjusted EBITDA increased 28% to $114 million, and adjusted EPS grew to $0.33 from $0.26. Company-operated same-shop sales rose 8.3%, including 3.4% transaction growth, while system same-shop sales increased 5.8%.
• Full-year guidance was raised: Dutch Bros now expects 2026 revenue of $2.10 billion-$2.13 billion, adjusted EBITDA of $385 million-$390 million, system same-shop sales growth of 5%-6%, and at least 185 new shop openings.
• Expansion momentum remains significant: The company opened 48 shops in Q2, has approximately 90% of the pipeline needed to reach 2,029 shops by 2029, completed its acquisition of 31 Phoenix-area locations, and agreed to acquire up to 65 Salad and Go sites for potential 2027 conversions.
• New sales drivers are gaining traction: The food program reached roughly 750 shops ahead of schedule, Myst Energy Refreshers increased the energy sales mix and will become a permanent menu item, while Dutch Rewards accounted for more than 73% of transactions and Order Ahead reached approximately 16% of transactions.
• Input and occupancy costs remain headwinds: Higher coffee costs, food-program expenses, and the shift toward build-to-suit leases are expected to create approximately 60 basis points of COGS pressure and contribute to roughly 20 basis points of adjusted EBITDA margin pressure in 2026.

Dutch Bros Trading Up 2.4%

Shares of BROS traded up $1.52 during midday trading on Wednesday, hitting $65.63. The stock had a trading volume of 3,784,821 shares, compared to its average volume of 2,584,552. The stock's 50 day moving average is $65.08 and its 200 day moving average is $57.57. The firm has a market cap of $11.46 billion, a PE ratio of 102.55, a price-to-earnings-growth ratio of 1.95 and a beta of 2.32. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.33 and a quick ratio of 1.19. Dutch Bros has a 1 year low of $44.58 and a 1 year high of $74.65.

Insider Activity

In other 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 value of $16,451,686.10. Following the transaction, the insider directly owned 2,410,800 shares in the company, valued at approximately $151,928,616. This represents a 9.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, 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 Dutch Bros stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $63.02, for a total transaction of $47,265,000.00. Following the sale, the chairman directly owned 2,410,800 shares of the company's stock, valued at $151,928,616. This represents a 23.73% 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 a total of 4,086,245 shares of company stock worth $243,021,771 over the last quarter. 38.90% of the stock is currently owned by insiders.

Institutional Trading of Dutch Bros

Institutional investors have recently modified their holdings of the company. Mercer Global Advisors Inc. ADV acquired a new stake in Dutch Bros in the fourth quarter valued at approximately $397,000. Fuller & Thaler Asset Management Inc. grew its holdings in shares of Dutch Bros by 7.5% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 1,117,797 shares of the company's stock valued at $68,432,000 after buying an additional 77,669 shares during the last quarter. NewEdge Advisors LLC grew its stake in Dutch Bros by 13,162.0% during the 4th quarter. NewEdge Advisors LLC now owns 6,631 shares of the company's stock valued at $406,000 after purchasing an additional 6,581 shares during the last quarter. XTX Topco Ltd boosted its position in Dutch Bros by 40.7% in the fourth quarter. XTX Topco Ltd now owns 18,846 shares of the company's stock valued at $1,154,000 after buying an additional 5,451 shares during the last quarter. Finally, Wellington Management Group LLP increased its stake in shares of Dutch Bros by 22.8% in the fourth quarter. Wellington Management Group LLP now owns 1,324,107 shares of the company's stock worth $81,062,000 after acquiring an additional 246,210 shares during the period. 85.54% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have commented on BROS. Royal Bank Of Canada reiterated an "outperform" rating on shares of Dutch Bros in a research note on Wednesday, May 20th. Weiss Ratings restated a "hold (c)" rating on shares of Dutch Bros in a report on Friday, July 17th. Barclays reduced their price objective on Dutch Bros from $76.00 to $75.00 and set an "overweight" rating on the stock in a research note on Thursday, May 7th. UBS Group reissued a "buy" rating on shares of Dutch Bros in a report on Tuesday, July 28th. Finally, KeyCorp increased their price objective on shares of Dutch Bros from $77.00 to $79.00 and gave the company an "overweight" rating in a research report on Thursday, May 7th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $77.86.

About Dutch 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.

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