stockrowLatest quarter
Dutch Bros reported quarterly revenue of $550.9 million, exceeding the consensus estimate of $524.2 million. Adjusted earnings per share of $0.33 also beat the consensus of $0.29.
Revenue rose 32.5% from $415.8 million a year earlier. In its filing, Dutch Bros attributed company-operated shop revenue growth to newly opened locations and higher same-shop sales. The company opened 48 shops during the quarter.
Dutch Bros reported diluted earnings per share of $0.28, compared with $0.20 a year earlier. Gross margin was 27.4%, compared with 28.9%, while operating margin was 12.8%, compared with 13.1%.
The filing attributed higher beverage, food and packaging costs as a share of company-operated shop revenue primarily to coffee costs and the new food program. It said labor costs fell as a share of those revenues, primarily because of sales leverage and pricing. Dutch Bros reported free cash flow of $40.0 million, compared with $35.7 million a year earlier.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $550.9 million | $415.8 million | 32.5% |
| Diluted EPS | $0.28 | $0.20 | 40.0% |
| Gross margin | 27.4% | 28.9% | −1.4 percentage points |
| Operating margin | 12.8% | 13.1% | −0.4 percentage points |
| Free cash flow | $40.0 million | $35.7 million | 12.0% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.33 | $0.29 | Beat by 13.8% |
| Revenue | $550.9 million | $524.2 million | Beat by 5.08% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its filing, Dutch Bros said minimum wage increases would continue to affect operating results and described menu price increases and productivity measures taken to help offset the pressure. The company cautioned that higher menu prices may reduce consumer demand.
Guidance
Dutch Bros raised its full-year revenue guidance from its previous range. The company also said it now estimates systemwide same-shop sales growth of 5.00% to 6.00% for the year.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Units, System Shop Openings | FY2026 | 185 | — | — |
| Capex | FY2026 | $350.0 million–$370.0 million | — | New |
| EBITDA, non-GAAP | FY2026 | $385.0 million–$390.0 million | — | New |
| Revenue growth, Systemwide Same Shop Sales Growth | FY2026 | 5.00%–6.00% | — | New |
| Revenue | FY2026 | $2.1 billion–$2.1 billion | — | New |
| Units | FY2029 | Dutch Bros targets 2,029 shops in FY2029. | — | — |