Dutch Bros (NYSE:BROS) Issues Quarterly Earnings Results

Dutch Bros (NYSE:BROS) released its quarterly earnings data on Wednesday. The company reported $0.33 EPS for the quarter, beating the consensus estimate of $0.29 by $0.04, FiscalAI reports. Dutch Bros had a net margin of 4.61% and a return on equity of 9.42%. The business had revenue of $550.85 million for the quarter, compared to the consensus estimate of $525.38 million. During the same period in the prior year, the firm earned $0.26 EPS. The business’s revenue for the quarter was up 32.5% on a year-over-year basis.

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 Stock Performance

Shares of BROS stock traded up $1.52 during mid-day trading on Wednesday, hitting $65.63. 3,784,821 shares of the stock were exchanged, compared to its average volume of 2,584,552. Dutch Bros has a 12-month low of $44.58 and a 12-month high of $74.65. 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 capitalization of $11.46 billion, a price-to-earnings ratio of 102.55, a P/E/G ratio of 1.95 and a beta of 2.32. The stock’s fifty day simple moving average is $65.08 and its two-hundred day simple moving average is $57.57.

Insider Buying and Selling

In other news, Chairman Travis Boersma sold 750,000 shares of the 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 $47,265,000.00. Following the completion of 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through 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 on Thursday, June 11th. The stock was sold at an average price of $63.02, for a total transaction of $16,451,686.10. Following the transaction, the insider directly owned 2,410,800 shares in the company, valued at $151,928,616. The trade was a 9.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 in the last 90 days. 38.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Dutch Bros

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Osterweis Capital Management Inc. purchased a new position in shares of Dutch Bros in the 2nd quarter valued at approximately $27,000. Ankerstar Wealth LLC purchased a new stake in shares of Dutch Bros during the fourth quarter worth approximately $31,000. Rakuten Securities Inc. lifted its holdings in shares of Dutch Bros by 557.4% during the second quarter. Rakuten Securities Inc. now owns 447 shares of the company’s stock worth $31,000 after purchasing an additional 379 shares during the period. Quarry LP lifted its holdings in shares of Dutch Bros by 83.5% during the fourth quarter. Quarry LP now owns 600 shares of the company’s stock worth $37,000 after purchasing an additional 273 shares during the period. Finally, Smartleaf Asset Management LLC grew its position in Dutch Bros by 129.2% in the 4th quarter. Smartleaf Asset Management LLC now owns 635 shares of the company’s stock valued at $39,000 after buying an additional 358 shares during the last quarter. Hedge funds and other institutional investors own 85.54% of the company’s stock.

Wall Street Analyst Weigh In

BROS has been the topic of a number of recent analyst reports. Piper Sandler increased their target price on Dutch Bros from $61.00 to $68.00 and gave the company a “neutral” rating in a research report on Monday, June 22nd. Weiss Ratings restated a “hold (c)” rating on shares of Dutch Bros in a report on Friday, July 17th. TD Cowen reiterated a “buy” rating and issued a $73.00 price objective on shares of Dutch Bros in a report on Wednesday, June 10th. KeyCorp increased their target price on shares of Dutch Bros from $77.00 to $79.00 and gave the stock an “overweight” rating in a research note on Thursday, May 7th. Finally, Barclays cut their price target on shares of Dutch Bros from $76.00 to $75.00 and set an “overweight” rating on the stock in a research note on Thursday, May 7th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Dutch Bros presently has a consensus rating of “Moderate Buy” and a consensus target price of $77.86.

More Dutch Bros News

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, above the $0.29 consensus estimate, while revenue rose 32.5% year over year to $550.9 million, exceeding expectations of approximately $525.4 million. Company-operated same-shop sales increased 8.3%. Dutch Bros Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised its 2026 revenue outlook. Dutch Bros now projects approximately $2.1 billion to $2.13 billion in 2026 revenue, supporting the bullish view on continued sales and unit growth. The company opened 48 shops during the quarter, including 44 company-operated locations, and is targeting 2,029 shops by 2029. Dutch Bros Projects 2026 Revenue and Store Growth
• Positive Sentiment: The planned Salad and Go purchase could accelerate expansion. Dutch Bros has offered $105 million to acquire up to 65 shuttered Salad and Go locations across Arizona, Texas and other states. Reusing existing drive-thru sites could give the company a faster and potentially more efficient path to opening new shops. Dutch Bros to Buy Salad and Go Locations
• Neutral Sentiment: New limited-time drinks may support customer traffic. The Mexican Mocha and Island Potion beverages provide additional menu innovation and promotional opportunities, though the financial impact is not yet quantified. Dutch Bros Adds New Limited-Time Drinks
• Negative Sentiment: Valuation and execution risks remain. With a triple-digit price-to-earnings ratio, expectations are high. The Salad and Go transaction would require substantial capital and integration work, while the stock’s initial post-earnings reaction was pressured despite the earnings beat, suggesting investors may be focused on guidance quality and growth costs.

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.