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

Dutch Bros (NYSE:BROS) issued its quarterly earnings results on Wednesday. The company reported $0.25 earnings per share (EPS) for the quarter, beating the consensus estimate 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 for 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 Trading Up 0.7%

NYSE:BROS traded up $0.32 during mid-day trading on Wednesday, hitting $43.90. The company had a trading volume of 9,753,712 shares, compared to its average volume of 4,328,456. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.19 and a current ratio of 1.35. Dutch Bros has a fifty-two week low of $36.51 and a fifty-two week high of $74.02. The firm has a market cap of $7.67 billion, a P/E ratio of 60.97, a P/E/G ratio of 1.37 and a beta of 1.97. The business’s fifty day moving average is $42.26 and its two-hundred day moving average is $53.25.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on BROS. DA Davidson lowered their price objective on Dutch Bros from $85.00 to $60.00 and set a “buy” rating for the company in a research report on Monday, September 28th. Raymond James Financial set a $59.00 target price on shares of Dutch Bros in a research note on Friday, September 18th. KeyCorp lowered their price target on shares of Dutch Bros from $79.00 to $59.00 and set an “overweight” rating for the company in a research report on Friday, October 23rd. Wells Fargo & Company dropped their price target on shares of Dutch Bros from $70.00 to $55.00 and set an “overweight” rating for the company in a research note on Wednesday, October 21st. Finally, Melius Research dropped their price target on shares of Dutch Bros from $95.00 to $70.00 and set a “buy” rating for the company in a research note on Friday, September 18th. 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. Based on data from MarketBeat, Dutch Bros currently has an average rating of “Moderate Buy” and an average target price of $66.08.

Insider Activity

In other news, Director Todd Penegor acquired 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, with a total value of $103,120.00. Following the purchase, the director directly owned 7,358 shares of the company’s stock, valued at $379,378.48. The trade was a 37.33% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Dm Individual Aggregator, Llc sold 20,008 shares of the business’s stock in a transaction that occurred on Friday, October 30th. The shares were sold at an average price of $44.09, for a total transaction of $882,152.72. Following the transaction, the insider owned 2,198,060 shares of the company’s stock, valued at approximately $96,912,465.40. This represents a 0.90% 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 a total of 823,928 shares of company stock valued at $36,278,271 in the last ninety days. 38.90% of the stock is owned by insiders.

Dutch Bros Company Profile

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.