Dutch Bros (BROS) Drives Impressive Results as Sales Jumped 31% Last Quarter

Stock (Symbol)

Dutch Bros (BROS)

Stock Price

$58

Sector

Data is as of

Expected to Report

Company Description

Dutch Bros Inc. is an operator and franchisor of drive-thru shops that focus on serving hand-crafted beverages.

The Company offers a variety of customizable cold and hot beverages to its customers.

Its hand-crafted beverage offerings include hot and cold espresso-based beverages, cold brew coffee products, Dutch Bros. Blue Rebel energy drinks, tea, lemonade, smoothies and other beverages.

Its other beverages include Iced Tiger’s Blood Lemonade, Birthday Cake Frost, Blended Aftershock Rebel, Golden Eagle Freeze, Hot Annihilator, Iced Caramelizer and Iced Electric Berry Rebel.

It also offers private reserve coffee sourced through their in-house coffee roasting facility and extracted using La Marzocco machines.

It operates approximately 538 shops in 12 states, of which 271 are Company-operated shops and 267 franchise shops. Its shops are located in Arizona, California, Colorado, Idaho, Kansas, Nevada, New Mexico, Oklahoma, Oregon, Texas, Utah, and Washington. (Source: Refinitiv)

Sharek’s Take

Last quarter, Dutch Bros (BROS) delivered Impressive results with revenue up a robust 31% as same shop sales increased 8%.

Dutch Bros is a quick-service drive-thru coffee shop chain that serves up iced coffee, energy drinks, and a few snacks. Dutch Bros started began when two brothers who were third-generation dairy farmers bought a double-head espresso machine and opened a pushcart espresso bar in 1992 on the side of the railroad tracks in the state of Oregon. They were quickly making more than $100 a day, and put the money back into the business until one pushcart became five. The company had its first franchise in 2000 and has since grown into an operation with 1136 coffee shops, as of December 31, 2025. Of the 1136 shops, 811 are company owned and 325 are franchised, including the recently acquired clutch coffee shops. With the company’s current expansion plans, management believes it is in line with its goal to reach 2029 shops by 2029.

Here’s some more interesting points about the company:

• One of the fastest-growing quick-service beverage brands in the U.S. by location count.
• The menu focuses on iced coffee and energy drinks.
• BROS business model is built around drive-thrus, and most have walk-up windows and party patios.
• Cold beverages make up 80% of the menu mix.
• Its Blue Rebel energy drinks choices include Electric Berry, Shark Attack, Unicorn Blood, and OG Gummybear.
• The menu is light on snacks, with just a granola bar and some muffins to choose from (but this is good because it gives the company room to grow).
• In 2021, the company launched the Dutch Rewards program. In 2025, about 72% of all transactions were made by Dutch Rewards members, an improvement from 68% in 2024. Dutch Rewards exceeded 15 million members at the end of 2025. 
• Average Unit Volume (AUV) was $2.1 million at the end of 2025.
• In late November 2025, Dutch Bros opened a walk-up shop in downtown Los Angeles. This is basically a small coffee stand where you order on foot instead of using a car. Management said this location is the company’s top-performing shop, with an order-ahead mix more than three times higher than the system average.

Dutch Bros is a compounding story, as management has plans to grow from 1000 shops to 4000 during the next 10 to 15 years. Analysts give the stock a high Estimated Long-Term Growth Rate (Est. LTG) of 34% a year. I imagine profits might have the ability to climb 30-35% a year in the long-run. BROS is in my Growth Portfolio and Focus List.

One Year Chart

Stocks have four stages of a run:

1. The bottoming process, which you see here.
2. The stock emerges up from the base and moves higher.
3. The stock is topping and turning lower.
4. The slide down.

BROS is now in Stage 2.

The 62 P/E is high, but the company is young and growing profits briskly. I don’t feel the stock is overvalued, and I’ll explain why later.

The Est. LTG is 34%, which I feel is accurate.

Quarterly profit growth has been erratic this past year.

Earnings Table

Last quarter, Dutch Bros met estimates of 14% profit growth. Revenue increased 31% year-on-year and beat estimates of 27%.

• About 74% of transactions came from Dutch Rewards members, with Gen Z and Millennials contributing most of the growth momentum.
• Order Ahead transactions reached 15% of the mix.
• Beverage, food, and packaging costs were 26.2% of company-operated revenue, up from 25.0% a year ago, mainly due to higher coffee prices and costs associated with the continued rollout of its new food program.
• The new food rollout was completed across 485 system stores, including 11 franchise locations.
• Last quarter, Dutch Bros’ Limited Time Offer window boosted unit velocity by roughly 30% year over year. In March, it introduced three nostalgic throwback drinks: the Brown Butter Chocolate Chip Latte, Fruit Punch Rebel with a Sour Candy Straw, and Cool Blue Fizz.
• In May, Dutch Bros launched Myst Energy Refreshers, a new plant-based energy drink line. The lightly carbonated beverages contain antioxidants and electrolytes and have fewer than 100 calories.

Annual Profit Estimates are mixed last quarter. Management increased its 2026 guidance, projecting approximately 26% revenue growth and 4-6% same-store sales growth. Total systemwide store openings are expected to reach at least 185.

Quarterly Profit Estimates for the next 4 quarters are 15%, 32%, 35%, 38% growth. Analysts think BROS’ revenue will grow 26% next quarter.

Fair Value

This is too young of a company to price the stock on a P/E basis, so I will use price-to-sales.

This quarter, with the stock at $58, it sells for 5x 2026 annual revenue estimates. My Fair Value is 5x revenue. Here are my price estimates for 2026 and 2027:

Current quarter:
5 x $2.1 billion in revenue = $10 billion market cap
$10 billion / 175 million shares = $58

2026 Fair Value:
5 x $2.1 billion in revenue = $10 billion market cap
$10 billion / 175 million shares = $60
Upside/Downside: +3%

2027 Fair Value:
5 x $2.6 billion in revenue = $13 billion market cap
$13 billion / 165 million shares = $73
Upside/Downside: +27%

Bottom Line

Dutch Bros (BROS) garnered a lot of attention when it debuted as the shares opened at $33 in August 2021.

Dutch Bros is a nice young company with a bright future. Results were very good this quarter. Restaurants have had a tough time in general this past year, and I think this stock is a leader of the sector.

BROS ranks 11th in the Growth Portfolio Power Rankings.

The stock bumps up from 12th to 11th in the Focus List Power Rankings. I added the stock to this portfolio last qtr.

Power Rankings

11 of 30

Focus List

11 of 18

Conservative Stock Portfolio

N/A