Dutch Bros (NYSE:BROS) executives highlighted what they characterized as broad-based momentum in the company’s fourth-quarter and full-year 2025 results, pointing to transaction-driven comparable sales growth, strong new-shop performance, and continued investments in digital, throughput, and food as key pillars for growth entering 2026.
Fourth-quarter results driven by transactions and new shops
CEO and President Christine Barone said the company’s fourth quarter “maintain[ed] the strength of the prior three quarters,” with performance described as broad-based across geographies and dayparts. The company reported fourth-quarter total revenue of $444 million, up 29% year over year, driven by new shop performance and system same-shop sales growth of 7.7%. Barone emphasized “standout transaction growth of 5.4%” in the quarter as a primary driver.
Executives also highlighted record system-wide average unit volumes (AUVs) of $2.1 million. Barone said the AUV record reflected the company’s “people pipeline,” brand resonance, and a development execution engine refined over recent years.
Full-year 2025: Revenue up 28%, adjusted EBITDA up 31%
For full-year 2025, Guenser reported total revenue of $1.64 billion, up 28%, and adjusted EBITDA of $303 million, up 31% and “outpac[ing] total revenue growth.” System same-shop sales rose 5.6% for the year, including transaction growth of 3.2%.
Barone attributed 2025 performance to 154 new shop openings—representing 16% new shop growth—along with same-shop sales gains. She said new shop productivity “remains elevated” following development process refinements in recent years and described openings as consistently strong in both existing and newer markets.
Profitability commentary centered on shop-level economics. Barone said company-operated contribution margin was 28.9% in 2025, representing more than 400 basis points of expansion since 2022. Guenser added that the 2025 company-operated contribution margin was approximately 29% despite commodity cost headwinds, and reiterated confidence in reaching a long-term contribution margin goal of approximately 30% as coffee costs normalize.
Expansion plans and development updates, including Clutch acquisition
Dutch Bros ended 2025 with 1,136 system-wide shops across 25 states, after expanding into seven contiguous states and entering North Carolina in the fourth quarter. Barone reiterated a longer-term goal “to reach 2,029 shops in 2029,” saying an accelerated pipeline and capability investments improved visibility toward that target.
Looking to 2026, management now expects to open at least 181 new system shops, which includes the acquisition of 20 Clutch Coffee Bar locations across North and South Carolina. Guenser said the purchase price was approximately $20 million and described it as a capital-efficient way to enter a market more rapidly through conversions of existing coffee stands. He also confirmed that the $20 million purchase price is included in the company’s 2026 CapEx guide.
On the conversion timeline and incremental investment, Guenser said the additional capital required to transition the Clutch locations is “relatively light,” consisting of items such as equipment, signage, and overall “look and feel,” and indicated the all-in cost is not materially inconsistent with current shop build costs. He said the company expects the converted shops to open during the year in the second and third quarters.
Executives also discussed a non-drive-through “walk-up” shop opened in downtown Los Angeles in late November as a test case for dense urban corridors. Barone said the location has been the company’s top-performing shop since opening and has an Order Ahead mix more than three times the system average. She said the company remains in early learning stages but views the concept as a potential additional channel beyond its stated 7,000-shop total addressable market, which she said assumes drive-through locations.
Food, Order Ahead, and loyalty cited as multi-year growth drivers
Management repeatedly returned to initiatives intended to reduce friction and increase visit frequency, including Order Ahead, throughput improvements, and a new food program.
- Order Ahead: Barone said the program ended 2025 at about 14% mix in the fourth quarter and has helped activate the walk-up window channel, which represented about 18% of channel mix in Q4. She said the company is not setting a targeted mix level for shops, emphasizing customer preference and balancing demand across channels.
- Food program: Barone said the food platform expanded from four shops in the Phoenix area a year ago to more than 300 shops across 11 states by the end of 2025, with a systemwide rollout planned to be complete by the end of 2026. Guenser said early results suggest an approximate 4% comp lift in shops with the program. He also noted that nearly 300 legacy shops may not be able to accommodate the new food program.
- Dutch Rewards: Barone said the loyalty program surpassed 15 million members at the end of 2025, and approximately 72% of system transactions were attributed to Dutch Rewards in 2025, up four points from 2024.
On margins, Guenser said coffee costs remained elevated throughout 2025 and would continue to impact results into 2026, with P&L effects typically lagging coffee price changes by two to three quarters due to inventory turns. He said the midpoint of 2026 guidance contemplates about 80 basis points of total cost of goods sold pressure, including approximately 200 basis points of COGS pressure in the first quarter that is expected to step down through the year. In response to questions about the food rollout, Guenser said food is expected to be “dollar accretive” by adding occasions but still expected to put some pressure on margin overall.
2026 outlook: Revenue $2.0B-$2.03B, adjusted EBITDA $355M-$365M
For 2026, Guenser guided to total revenue of $2.0 billion to $2.03 billion, representing 22% to 24% growth, with system same-shop sales growth of approximately 3% to 5%. The company expects adjusted EBITDA of $355 million to $365 million; at the midpoint, Guenser said the company expects about 60 basis points of net adjusted EBITDA margin pressure driven largely by elevated coffee costs and occupancy impacts, partially offset by leverage in adjusted SG&A. Capital expenditures are expected to be $270 million to $290 million.
Liquidity at year-end was approximately $705 million, consisting of $269 million in cash and cash equivalents and about $435 million in an undrawn revolver. Guenser said the company generated free cash flow for a second consecutive year and noted that net cash increased by about $3 million from the third quarter, driven by strong operating cash flows. He also highlighted reduced average CapEx per shop in the fourth quarter to $1.3 million, down from $1.8 million in the fourth quarter of 2024.
In the Q&A, Barone addressed competitive questions by emphasizing Dutch Bros’ value proposition, service, beverage quality, and long-standing presence in a “competitive market since 1992,” while saying the company is not seeing meaningful impacts from competitive tests on either a broad or localized basis. She also noted that, as previously discussed last quarter, the company did not see business impacts in Colorado during McDonald’s energy drink test.
Closing the call, Barone said 2025 was a “monumental year” and noted community efforts that included supporting nearly 700 local organizations and hosting more than 1,600 local givebacks.
About Dutch Bros (NYSE: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.
