Dutch Bros (NYSE:BROS) Issues Earnings Results, Beats Expectations By $0.04 EPS

Dutch Bros (NYSE:BROS) issued its quarterly earnings results on Wednesday. The company reported $0.33 EPS for the quarter, topping the consensus estimate of $0.29 by $0.04, FiscalAI reports. The company had revenue of $550.85 million during the quarter, compared to analyst estimates of $525.38 million. Dutch Bros had a net margin of 4.61% and a return on equity of 9.42%. The firm’s revenue was up 32.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.26 EPS.

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 Trading Up 2.4%

Shares of BROS stock traded up $1.52 on Wednesday, hitting $65.63. The stock had a trading volume of 3,784,821 shares, compared to its average volume of 2,584,552. The firm has a market capitalization of $11.46 billion, a P/E ratio of 102.55, a P/E/G ratio of 1.95 and a beta of 2.32. Dutch Bros has a 1 year low of $44.58 and a 1 year high of $74.65. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.33 and a quick ratio of 1.19. The company’s 50 day moving average price is $65.08 and its 200-day moving average price is $57.57.

Analyst Ratings Changes

BROS has been the topic of several research analyst reports. Freedom Capital upgraded shares of Dutch Bros to a “strong-buy” rating in a research report on Wednesday, July 1st. Oppenheimer raised their price target on shares of Dutch Bros from $72.00 to $82.00 and gave the company an “outperform” rating in a research note on Tuesday, June 30th. Morgan Stanley boosted their price objective on Dutch Bros from $87.00 to $88.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 15th. TD Cowen restated a “buy” rating and issued a $73.00 target price on shares of Dutch Bros in a research report on Wednesday, June 10th. Finally, Telsey Advisory Group boosted their price target on Dutch Bros from $66.00 to $74.00 and gave the stock an “outperform” rating in a research report on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $77.86.

Insider Buying and Selling at Dutch Bros

In other Dutch Bros news, 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 value of $16,451,686.10. Following the sale, the insider directly owned 2,410,800 shares in the company, valued at $151,928,616. This trade represents a 9.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Travis Boersma sold 750,000 shares of the firm’s stock in a transaction dated 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 sale, the chairman directly owned 2,410,800 shares in the company, valued at $151,928,616. This trade represents a 23.73% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 valued at $243,021,771 over the last three months. 38.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Osterweis Capital Management Inc. purchased a new stake in Dutch Bros during the second quarter worth about $27,000. Rakuten Securities Inc. raised its stake in Dutch Bros by 557.4% in the 2nd quarter. Rakuten Securities Inc. now owns 447 shares of the company’s stock valued at $31,000 after purchasing an additional 379 shares during the last quarter. Ankerstar Wealth LLC acquired a new stake in Dutch Bros during the fourth quarter worth approximately $31,000. Quarry LP increased its stake in Dutch Bros by 83.5% in the fourth quarter. Quarry LP now owns 600 shares of the company’s stock valued at $37,000 after purchasing an additional 273 shares during the last quarter. Finally, Smartleaf Asset Management LLC boosted its stake in Dutch Bros by 129.2% in the 4th quarter. Smartleaf Asset Management LLC now owns 635 shares of the company’s stock worth $39,000 after buying an additional 358 shares during the last quarter. 85.54% of the stock is owned by hedge funds and other institutional investors.

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.