Dutch 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.
Company-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.
Guenser 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.
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