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

Dutch Bros (NYSE:BROS) posted its quarterly earnings data on Wednesday. The company reported $0.25 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.01, FiscalAI reports. Dutch Bros had a net margin of 4.91% and a return on equity of 10.01%. The company had revenue of $549.84 million for the quarter, compared to analyst estimates of $548.27 million. During the same period in the previous year, the business posted $0.19 earnings per share. Dutch Bros’s quarterly revenue was up 29.8% on a year-over-year basis.

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 Trading Down 21.9%

BROS stock traded down $9.65 on Thursday, hitting $34.34. 8,197,282 shares of the company were exchanged, compared to its average volume of 4,346,200. 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 has a market capitalization of $6.00 billion, a price-to-earnings ratio of 47.32, a price-to-earnings-growth ratio of 1.36 and a beta of 1.97. Dutch Bros has a twelve month low of $34.09 and a twelve month high of $74.02. The business’s fifty day moving average is $42.11 and its two-hundred day moving average is $53.16.

Insiders Place Their Bets

In related news, major shareholder Dm Individual Aggregator, Llc sold 359,284 shares of the stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $44.73, for a total transaction of $16,070,773.32. Following the completion of the sale, the insider owned 1,366,580 shares of the company’s stock, valued at approximately $61,127,123.40. This represents a 20.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Travis Boersma sold 1,032,216 shares of the firm’s stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $44.73, for a total value of $46,171,021.68. Following the completion of the transaction, the chairman directly owned 1,366,580 shares in the company, valued at $61,127,123.40. This trade represents a 43.03% 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. In the last quarter, insiders sold 4,044,220 shares of company stock worth $179,732,644. 38.90% of the stock is owned by company insiders.

Dutch Bros News Summary

Here are the key news stories impacting Dutch Bros this week:

• Positive Sentiment: Third-quarter adjusted earnings of $0.25 per share topped the $0.24 consensus, while revenue of $549.8 million slightly exceeded estimates and grew 29.8% year over year. Dutch Bros Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Dutch Bros is planning roughly 250 system shop openings in 2027 and expects at least $2.1 billion in 2026 revenue. Reports also cite plans to add hot food and delivery in 2027, which could broaden sales opportunities. Revenue outlook and planned shop openings
• Neutral Sentiment: KeyCorp, Stephens and TD Cowen lowered their price targets to $52, $47 and $50, respectively, but maintained Overweight or Buy ratings. The lower targets signal more cautious expectations, while the firms still see potential upside. Analysts cut forecasts after Q3 results
• Negative Sentiment: Slowing Q3 traffic and a narrowed full-year sales outlook that was reported below Wall Street expectations appear to have outweighed the earnings beat, prompting a negative market reaction. Q3 traffic slows and outlook falls below expectations
• Negative Sentiment: Chairman Travis Boersma and affiliated major shareholder DM Individual Aggregator reported substantial share sales. The trades were made under pre-arranged Rule 10b5-1 plans, but the sales may still weigh on investor sentiment. Dutch Bros major shareholder share sale

Analyst Upgrades and Downgrades

Several research firms have recently commented on BROS. BNP Paribas Exane reduced their price target on Dutch Bros from $77.00 to $54.00 and set an “outperform” rating for the company in a report on Thursday. Oppenheimer cut their price target on shares of Dutch Bros from $66.00 to $54.00 and set an “outperform” rating for the company in a report on Thursday. Seaport Research Partners initiated 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 for the company. Telsey Advisory Group set a $56.00 price objective on shares of Dutch Bros in a research note on Thursday. Finally, Mizuho set a $55.00 price objective on shares of Dutch Bros in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $62.33.

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.