Dutch Bros (NYSE:BROS) Issues Earnings Results

Dutch Bros (NYSE:BROS) released its earnings results on Wednesday. The company reported $0.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.01, FiscalAI reports. Dutch Bros had a net margin of 5.08% and a return on equity of 10.68%. The business had revenue of $549.84 million during the quarter, compared to the consensus estimate of $548.27 million. During the same quarter in the prior year, the firm posted $0.19 EPS. The company’s revenue for the quarter was up 29.8% compared to the same quarter last year.

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 2.1%

Shares of Dutch Bros stock traded down $0.72 on Friday, reaching $33.85. 5,083,365 shares of the company’s stock were exchanged, compared to its average volume of 4,380,450. The company has a market capitalization of $5.91 billion, a P/E ratio of 43.50, a price-to-earnings-growth ratio of 1.37 and a beta of 1.97. Dutch Bros has a 52 week low of $33.17 and a 52 week high of $74.02. The firm’s 50-day moving average is $41.78 and its two-hundred day moving average is $53.02. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.19 and a current ratio of 1.35.

Wall Street Analyst Weigh In

BROS has been the topic of a number of recent analyst reports. Jefferies Financial Group dropped their price target on shares of Dutch Bros from $75.00 to $60.00 and set an “overweight” rating on the stock in a research report on Tuesday, September 29th. Weiss Ratings cut shares of Dutch Bros from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, October 23rd. Oppenheimer lowered their target price on shares of Dutch Bros from $66.00 to $54.00 and set an “outperform” rating for the company in a research note on Thursday. Seaport Research Partners initiated coverage on shares of Dutch Bros in a report on Wednesday, September 16th. They issued a “buy” rating and a $50.00 target price on the stock. Finally, Melius Research cut their price target on shares of Dutch Bros from $95.00 to $70.00 and set a “buy” rating on the stock in a research report 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 assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $61.83.

Trending Headlines about Dutch Bros

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

• Positive Sentiment: Q3 revenue rose about 30% year over year to roughly $550 million, slightly above expectations, while EPS of $0.25 topped the $0.24 consensus. Dutch Bros Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: The company plans approximately 250 system shop openings in 2027, supporting its longer-term expansion ambitions. A separate valuation analysis argues BROS may be substantially undervalued after its results and guidance. Dutch Bros: 3 Key Takeaways for Long-Term Investors Dutch Bros Could Be 48% Undervalued
• Neutral Sentiment: Dutch Bros unveiled a 2026 holiday menu, offering a seasonal product launch, though its likely sales impact is unclear. Dutch Bros Unveils 2026 Holiday Menu
• Negative Sentiment: Investors reacted poorly to slower traffic and a cautious outlook; reports cite reduced EBITDA expectations and weaker-than-expected sales guidance. Those concerns overshadowed the quarterly beat and drove a sharp post-results decline. Dutch Bros Shares Drop as Sales Growth Slows and EBITDA Forecast Is Reduced
• Negative Sentiment: Several analysts lowered price targets after the results, although some maintained Buy or Outperform ratings. The chairman and a major shareholder also disclosed substantial sales under prearranged trading plans, which may add to investor concerns. Analysts Cut Their Forecasts After Q3 Results Insider Travis Boersma Sells Shares

Insider Activity at Dutch Bros

In other news, Chairman Travis Boersma sold 1,032,216 shares of Dutch Bros stock in a transaction on 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 sale, the chairman owned 1,366,580 shares in the company, valued at $61,127,123.40. The trade was a 43.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Dm Individual Aggregator, Llc sold 359,284 shares of the business’s stock in a transaction 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 transaction, the insider owned 1,366,580 shares in the company, valued at $61,127,123.40. The trade was a 20.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 4,044,220 shares of company stock valued at $179,732,644. Insiders own 38.90% of the company’s stock.

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.