Dutch Bros delivered a strong fourth quarter, with revenue and non-GAAP profits surpassing Wall Street expectations. Management credited the positive results to robust transaction growth, successful new shop openings, and continued momentum in same-store sales. CEO Christine Barone highlighted that improvements in shop productivity and a refined development process helped drive higher average unit volumes, while the rollout of innovation in beverages and loyalty program engagement further supported performance. Barone added, “Our fourth quarter and full year 2025 results demonstrate the strong momentum we have in delivering our long-term strategy.”
Is now the time to buy BROS? Find out in our full research report (it’s free for active Edge members).
Dutch Bros (BROS) Q4 CY2025 Highlights:
- Revenue: $443.6 million vs analyst estimates of $424.7 million (29.4% year-on-year growth, 4.5% beat)
- Adjusted EPS: $0.17 vs analyst estimates of $0.10 (73.9% beat)
- Adjusted EBITDA: $72.64 million vs analyst estimates of $60.11 million (16.4% margin, 20.9% beat)
- EBITDA guidance for the upcoming financial year 2026 is $360 million at the midpoint, below analyst estimates of $365.2 million
- Operating Margin: 7.7%, up from 4.6% in the same quarter last year
- Locations: 1,136 at quarter end, up from 982 in the same quarter last year
- Same-Store Sales rose 7.7% year on year, in line with the same quarter last year
- Market Capitalization: $6.79 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Dutch Bros’s Q4 Earnings Call
- Andrew Michael Charles (TD Cowen) asked about Dutch Bros’ strategies to maintain traffic in a competitive beverage market. CEO Christine Barone emphasized service quality, innovation, and the ongoing food program rollout as key levers for sustaining customer visits.
- David E. Tarantino (Baird) inquired about the mandate for new Chief Shop Officer Jen Summers regarding operational improvements. Barone outlined Summers’ focus on supporting Broistas, rolling out the food program, and enhancing mobile ordering capabilities.
- Hyun Jin Cho (Goldman Sachs) questioned metrics for the food program’s success and its impact on customer behavior. Barone detailed internal tracking of customer satisfaction and operational metrics, stressing consistent transaction and ticket lift from the food rollout.
- Sara Harkavy Senatore (Bank of America) sought clarification on the financial impact of the food program and rationale for the Clutch acquisition. CFO Joshua Guenser described the food program as dollar accretive but margin dilutive, and characterized the Clutch deal as a capital-efficient market entry method.
- John William Ivankoe (JPMorgan) probed for evidence of competitive pressures in local markets. Barone reported no material impact from competition, citing strong brand positioning and consistent performance across geographies.
Catalysts in Upcoming Quarters
In the coming quarters, our analyst team will be monitoring (1) the pace and productivity of new shop openings, including both ground-up builds and Clutch conversions, (2) the full rollout and customer adoption of the new food program, and (3) the company’s ability to manage coffee and occupancy cost pressures while leveraging SG&A. Further progress in digital ordering and urban-format stores will also be important indicators of execution.
Dutch Bros currently trades at $53.41, up from $50.82 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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