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

Dutch Bros (NYSE:BROS) posted its quarterly earnings results on Wednesday. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $549.84 million during the quarter, compared to analysts’ expectations of $548.27 million. During the same period in the prior year, the company posted $0.19 earnings per share. The firm’s revenue for the quarter 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 Up 0.7%

NYSE BROS 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 4,395,353. The business’s 50 day moving average is $42.11 and its 200-day moving average is $53.16. 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 12-month low of $36.51 and a 12-month high of $74.02. The firm has a market capitalization of $7.67 billion, a P/E ratio of 62.26, a price-to-earnings-growth ratio of 1.36 and a beta of 1.97.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on BROS. UBS Group dropped their price objective on Dutch Bros from $85.00 to $75.00 and set a “buy” rating on the stock in a report on Monday, October 26th. DA Davidson reduced their target price on Dutch Bros from $85.00 to $60.00 and set a “buy” rating for the company in a report on Monday, September 28th. Seaport Research Partners assumed coverage on shares of Dutch Bros in a research report on Wednesday, September 16th. They set a “buy” rating and a $50.00 target price on the stock. KeyCorp cut their price target on shares of Dutch Bros from $79.00 to $59.00 and set an “overweight” rating for the company in a report on Friday, October 23rd. Finally, Oppenheimer reiterated a “positive” rating on shares of Dutch Bros in a research note on Wednesday, September 30th. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $66.08.

Insider Transactions at Dutch Bros

In other Dutch Bros news, major shareholder Dm Individual Aggregator, Llc sold 20,008 shares of Dutch Bros 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 directly owned 2,198,060 shares of the company’s stock, valued at $96,912,465.40. The trade was a 0.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Travis Boersma sold 57,478 shares of the company’s stock in a transaction dated Friday, October 30th. The stock was sold at an average price of $44.09, for a total value of $2,534,205.02. Following the completion of the sale, the chairman directly owned 2,198,060 shares of the company’s stock, valued at $96,912,465.40. The trade was a 2.55% 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. In the last quarter, insiders sold 823,928 shares of company stock worth $36,278,271. 38.90% of the stock is currently owned by company 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.