Dutch Bros (NYSE:BROS) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Dutch Bros reported quarterly EPS of $0.25, beating the $0.24 consensus, while revenue of $549.84 million also topped analyst expectations.
• Revenue and adjusted EBITDA each grew 30%, and system same-shop sales rose 4.4%. The company raised its 2026 outlook to at least $2.1 billion in revenue and expects at least 185 shop openings.
• Management flagged consumer uncertainty, tougher comparisons, and elevated costs—including coffee, packaging, and occupancy expenses—as potential headwinds to near-term growth and margins.

Dutch Bros (NYSE:BROS - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $0.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.24 by $0.01, FiscalAI reports. Dutch Bros had a return on equity of 10.01% and a net margin of 4.91%. The business had revenue of $549.84 million during the quarter, compared to analyst estimates of $548.27 million.

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

• Q3 growth remained strong: Revenue rose 30% to $550 million and adjusted EBITDA increased 30% to $101 million. System same-shop sales grew 4.4%, with company-operated sales up 5.4%, extending the company’s streaks of positive same-shop sales and customer visit growth.
• Dutch Bros raised its 2026 outlook to at least $2.1 billion in revenue, at least 5% system same-shop sales growth, and approximately $380 million in adjusted EBITDA. It also expects at least 185 shop openings in 2026.
• Development is accelerating: the company opened 48 shops in Q3 and expects approximately 250 system openings in 2027, primarily in existing states. Management said its real estate pipeline is at a company high, though denser markets may bring more cannibalization.
• Management cited consumer volatility and tougher comparisons as risks heading into Q4, including higher customer-visit comparisons and a smaller benefit from lapping the food rollout. While executives said October started well, they framed the outlook cautiously amid economic pressures such as gas and utility costs.
• Cost pressures may weigh on margins: Q4 food and packaging costs are expected to rise as seasonal mix shifts and Q3’s $4 million tariff-refund benefit does not recur. Elevated coffee, occupancy, utility, and freight costs may also persist, although management sees longer-term opportunities for operating leverage.

Dutch Bros Price Performance

Shares of BROS stock traded up $0.32 during trading hours on Wednesday, hitting $43.90. 9,753,712 shares of the company's stock were exchanged, compared to its average volume of 4,328,456. Dutch Bros has a 52 week low of $36.51 and a 52 week high of $74.02. The stock has a market cap of $7.67 billion, a price-to-earnings ratio of 60.97, a price-to-earnings-growth ratio of 1.37 and a beta of 1.97. 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 stock's 50-day moving average is $42.26 and its 200-day moving average is $53.25.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on BROS shares. Weiss Ratings cut shares of Dutch Bros from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, October 23rd. TD Cowen reduced their target price on shares of Dutch Bros from $59.00 to $55.00 and set a "buy" rating for the company in a report on Wednesday, October 21st. Mizuho decreased their price target on shares of Dutch Bros from $80.00 to $65.00 and set an "outperform" rating on the stock in a research report on Friday, October 30th. Seaport Research Partners started coverage on shares of Dutch Bros in a research note on Wednesday, September 16th. They issued a "buy" rating and a $50.00 price objective on the stock. Finally, Royal Bank Of Canada downgraded Dutch Bros from an "outperform" rating to a "sector perform" rating and lowered their price target for the company from $70.00 to $46.00 in a report on Thursday, October 22nd. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Dutch Bros presently has an average rating of "Moderate Buy" and a consensus target price of $66.08.

Insider Activity at Dutch Bros

In related news, Director Todd Penegor purchased 2,000 shares of Dutch Bros stock in a transaction that occurred on Thursday, August 13th. The shares were acquired at an average price of $51.56 per share, for a total transaction of $103,120.00. Following the transaction, the director directly owned 7,358 shares in the company, valued at approximately $379,378.48. This represents a 37.33% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, major shareholder Dm Individual Aggregator, Llc sold 142,023 shares of the firm's stock in a transaction dated Thursday, October 29th. The shares were sold at an average price of $44.03, for a total transaction of $6,253,272.69. Following the completion of the sale, the insider owned 2,218,068 shares of the company's stock, valued at $97,661,534.04. The trade was a 6.02% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 823,928 shares of company stock valued at $36,278,271 over the last ninety days. 38.90% of the stock is owned by insiders.

About Dutch Bros

Dutch Bros Inc is a drive-thru beverage company that operates and franchises coffee shops across the United States. The company is known for its made-to-order drinks, fast service and community-focused brand.

Its menu includes hot, iced and blended coffee beverages, along with specialty drinks such as energy drinks, teas, lemonades, smoothies and other noncoffee refreshments. Dutch Bros also offers packaged products and branded merchandise through select locations and digital channels.

Dutch Bros was founded in 1992 in Grants Pass, Oregon, by brothers Dane and Travis Boersma.

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