BROS

Dutch Bros Inc.

Next est. report 2026-08-05 · AMC

Packaged Foods '26: Coffee & TeasRestaurants '26: Coffee & DessertRestaurants '26: Dairy & Cheese Buyers Small Themes '24: Franchise Model

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Overview

Dutch Bros Inc. operates and franchises drive-thru coffee and energy drink shops across the U.S., known for customizable beverages and a people-led customer exp

Dutch Bros Inc. operates and franchises drive-thru coffee and energy drink shops across the U.S., known for customizable beverages and a people-led customer experience. The company primarily generates revenue from its company-operated shops, which also offer food and merchandise. They cater to a broad customer base, including Gen Z and millennials, through convenient drive-thru and order-ahead services.

What They Do (Plain English & Analogies): Dutch Bros is like a super-fast, friendly drive-thru coffee and beverage stand, but with a huge emphasis on unique, customizable drinks and a vibrant, energetic customer experience. Imagine a local coffee shop that's always buzzing, but instead of going inside, you drive up, get a personalized drink made by an enthusiastic "Broista," and are on your way quickly. They sell everything from coffee and teas to their signature "Rebel" energy drinks, and now even some simple food items like pastries. They operate their own shops and also allow others to open Dutch Bros locations as franchises, primarily focusing on drive-thru service across the United States.
Very Brief History: Dutch Bros Inc. was founded in 1992 in Grants Pass, Oregon. Starting as a drive-thru coffee stand, the company has grown significantly, establishing a strong presence across the United States through both company-operated and franchised locations. It has evolved into a prominent player in the quick-service beverage category, known for its unique culture, customizable menu, and rapid expansion, with a long-term goal of reaching 2,029 shops by 2029.
"Street Stereotype": The "street stereotype" of Dutch Bros is often that of a rapidly growing, high-energy, and youth-focused drive-thru beverage chain. Investors and analysts perceive it as a strong growth story with significant white space for expansion, driven by its unique "Broista" culture, strong customer loyalty, and innovative, customizable beverage offerings, particularly in the energy drink segment. There's also a focus on its ability to maintain strong transaction growth and profitability despite increasing competition and macro pressures.
Subsidiaries On Linked In*: {"subsidiaries":[]}
Customer Sectors & Example Clients: Dutch Bros' customers are individual consumers across various demographics, though the company notes strong engagement and transaction growth among Gen Z and millennials. Their primary customer sector is the general public seeking quick-service beverages and light food items. They do not have "clients" in the traditional B2B sense.
New Customers / Segments They'Re Targeting: Dutch Bros is targeting new customer segments by expanding its product offerings and leveraging its loyalty program. The launch of Myst Energy Refreshers, a plant-powered, lower-calorie energy platform, aims to attract customers seeking functional benefits and a different energy occasion than their traditional Rebel drinks. They are also expanding their reach through a new food program, which is designed to drive morning beverage occasions and increase overall transactions. Furthermore, their CPG (Consumer Packaged Goods) initiative, with products in select retail outlets, is intended to build brand awareness and reach customers beyond their physical drive-thru locations. The company also uses its Dutch Rewards program with increasingly sophisticated segmentation capabilities to engage new and existing customers, particularly Gen Z and millennials.
Supply Chain And Sourcing Geographies: The transcript mentions "higher coffee costs" as a factor impacting COGS, indicating coffee is a significant raw material in their supply chain. However, the transcript does not specify the geographical origin of their coffee beans or other ingredients. Therefore, specific sourcing geographies cannot be credibly determined from the provided text.
Sales Geographies And Expansion Plans: Dutch Bros currently operates and franchises drive-thru shops across the United States. Specific markets highlighted in the transcript include Texas, which is their largest comparable state by shop count and saw almost 20% same-shop sales growth in Q1 2026. They also mentioned opening shops in the Greater Chicago market and converting Clutch Coffee Bar locations in North and South Carolina. The company has clear plans for significant expansion, aiming to reach 2,029 shops by 2029. Their strategy involves densifying existing markets while expanding into new "white space" markets. They are accelerating their long-term shop openings and have a robust real estate pipeline, including attractive conversion opportunities from other limited-service operators and legacy beverage brands. They expect to open at least 185 system shops in 2026.
How Key Themes May Help/Hurt: The company's "people-led culture" and highly engaged "Broistas" are central to its brand identity, driving strong customer connections, repeat business, and supporting disciplined expansion through a robust operator pipeline. Innovation in customized beverages, especially energy drinks, allows them to capture a high-growth market segment and differentiate from competitors, as seen with the successful launch of Myst Energy Refreshers. Their disciplined market density strategy, coupled with transaction-driving initiatives like the food rollout, Dutch Rewards, and Order Ahead, aims to establish customer routine, improve retention, and increase frequency, leading to stronger brand outcomes and AUVs. However, maintaining this unique culture at scale during rapid expansion poses an execution risk. The company is also exposed to commodity price volatility, particularly coffee costs, which can pressure margins. Additionally, intensifying competition from large, well-capitalized players entering their core categories could challenge market share and growth.

3 Main Long-Term Bull Details

Strong Unit Growth Potential and Market Density Strategy: Dutch Bros has a clear path to 2,029 shops by 2029, supported by a robust development pipeline, efficient conversion opportunities (like Clutch Coffee Bar), and a proven strategy of densifying markets to drive routine and retention. This significant white space for expansion provides a long runway for revenue and profit growth.
Differentiated Brand and Customer Connection: The company's unique "people-led culture" and focus on authentic customer connection, delivered by highly engaged "Broistas," creates a strong competitive moat. This leads to exceptional customer service, high loyalty, and strong brand awareness, which is difficult for competitors to replicate.
Innovation-Driven Transaction Growth: Dutch Bros consistently drives transactions through category-leading innovation in customized beverages (e.g., Rebel, Myst Energy Refreshers) and strategic menu additions like food. These initiatives expand occasions, attract new customers, and enhance the value proposition, ensuring continued relevance and growth in the dynamic beverage market.

3 Main Long-Term Bear Details

Commodity Price Volatility and Margin Pressure: The company is exposed to fluctuations in key commodity costs, particularly coffee, which can significantly impact COGS and overall profitability. Persistent high coffee prices or other input cost increases could hinder margin expansion efforts.
Intensifying Competition in Beverage Market: Despite its differentiation, Dutch Bros operates in a highly competitive market with large, well-capitalized players increasingly focusing on similar beverage categories (e.g., energy drinks, customized cold beverages). This could lead to increased marketing spend, pricing pressure, or slower market share gains.
Execution Risk of Rapid Expansion: While growth is a bull case, the rapid pace of new shop openings (at least 185 in 2026, targeting 2,029 by 2029) carries execution risks. Maintaining operational consistency, quality, and the unique "Broista" culture across a rapidly expanding footprint, especially in new markets, could be challenging and potentially dilute the brand experience if not managed effectively.

Competitors And Differentiation: Dutch Bros competes in the large and growing beverage category. Their competitors include "two of the largest restaurant chains" (likely referring to Starbucks and McDonald's, given their beverage offerings) and other "legacy competitors" and "smaller emerging growth concepts" in the coffee and energy drink space. Dutch Bros differentiates itself through several key aspects: a "people-led culture" that creates authentic customer connections and is consistently rated top for service; a hyper-customizable menu with category-leading innovation, particularly in customized energy drinks like Rebel and Myst Energy Refreshers; a strong value proposition; and a platform optimized for to-go occasions, cold beverages, customization, and consistency. The strong brand strength is also evident in the successful conversion of Clutch Coffee Bar locations.
Recent Performance & What The Market'S Focused On: Dutch Bros delivered exceptional first-quarter 2026 results, with total revenues increasing an impressive 31% and adjusted EBITDA up 26%. System same-shop sales growth was 8.3%, driven by 5.1% transaction growth, marking seven consecutive quarters of transaction growth. The company meaningfully exceeded expectations and raised its full-year guidance for total revenues, system shop openings, system same-shop sales growth, and adjusted EBITDA. The market is currently focused on several key aspects: the continued strong transaction growth and same-shop sales performance, particularly in key markets like Texas; the successful rollout and positive impact of the new food program; the reception and potential of new beverage innovations like Myst Energy Refreshers; the effectiveness of their Dutch Rewards program and Order Ahead adoption; and their ability to maintain profitability and manage cost pressures (like higher coffee and occupancy costs) amidst rapid expansion and intense competition. The market is also closely watching their progress towards the 2,029 shops by 2029 goal and the productivity of new shops and conversions.

Revenue Segments And Estimated Mix: Company-Operated Shops — Mix: ~92.5%; Source: Q1 2026 transcript; Trend: Revenue increased 31% year-over-year
Franchising and Other — Mix: ~7.5%; Source: Q1 2026 transcript; Trend: Growth predominantly related to product orders to franchisees
Product Brands: Dutch Bros Coffee
Rebel
Blue Rebel
Myst Energy Refreshers
Food

Bull / Bear Details

Dutch Bros (BROS) presents a compelling long opportunity as of May 11, 2026, driven by exceptional Q1 2026 results, raised full-year guidance, and robust transa

Thesis

Dutch Bros (BROS) presents a compelling long opportunity as of May 11, 2026, driven by exceptional Q1 2026 results, raised full-year guidance, and robust transaction growth. The company's disciplined expansion, successful food rollout, and innovative beverage platform, including the new Myst Energy Refreshers, continue to drive market share gains and record AUVs. While facing commodity and occupancy cost pressures, strong operational execution and brand loyalty underpin its multi-year growth runway in the expanding customized beverage category.

Bull case

Dutch Bros delivered an impressive 31% total revenue growth and 8.3% system same-shop sales growth in Q1 2026, marking seven consecutive quarters of transaction growth. Management raised full-year guidance for revenue, shop openings (at least 185), SSSG (4-6%), and Adjusted EBITDA, reflecting strong momentum and confidence in continued market share gains.
The company's disciplined real estate pipeline is accelerating, with 41 new shops opened in Q1, ahead of schedule, and a clear path to 2,029 shops by 2029. Successful Clutch Coffee Bar conversions are significantly outperforming, generating over 3x pre-conversion volumes, validating the brand's strength and efficient capital deployment in new and existing markets like Texas, which saw nearly 20% SSSG.
Dutch Bros continues to widen its competitive moat through category-leading innovation, including the successful new food program rollout (tracking 4% comp lift, low teens attachment) and the launch of Myst Energy Refreshers, expanding its energy platform. High Dutch Rewards penetration (74%) and order-ahead adoption (15%), coupled with doubled unaided brand awareness and strong CPG velocity, foster deep customer loyalty and routine.

Bear case

The company faces headwinds from elevated coffee commodity prices, expected to cause approximately 60 basis points of COGS pressure for the full year 2026. Additionally, the strategic shift towards build-to-suit leases is driving higher occupancy costs, contributing to an anticipated 30 basis points of net adjusted EBITDA margin pressure, potentially impacting profitability.
Despite strong performance, the beverage and energy drink categories are attracting increased competition from large restaurant chains, as acknowledged by analysts. While Dutch Bros emphasizes its differentiated customized offerings, sustained aggressive entry and marketing from well-capitalized competitors could intensify pricing pressure or slow market share capture in certain regions.
While the rapid expansion plan to 2,029 shops by 2029 is a key growth driver, it carries inherent execution risks. Maintaining operational consistency, speed, quality, and the unique "people-led culture" across a rapidly growing and densifying store base, especially in new markets, could present challenges to Broista training, retention, and customer experience.

Bull / Bear Case

Bear Case: The bear case for Dutch Bros Inc. is primarily anchored by its extremely high valuation, with a P/E ratio ranging from 83.15x to 94.2x, significantly above its peer average of 57.1x and a fair ratio of 33.5x. This demanding valuation is further highlighted by a very low free cash flow yield of approximately 0.5% to 0.58%, indicating the stock is richly priced and leaves little margin for error. Despite strong Q1 results and raised guidance, the stock experienced a notable decline of 7-9.9% post-earnings, suggesting market concerns over valuation and margin pressures outweigh positive operational news. The company faces headwinds from elevated coffee commodity prices and higher occupancy costs, contributing to an anticipated 30 basis points of net adjusted EBITDA margin pressure. Furthermore, a deteriorating consumer sentiment, rising gasoline prices, and a general slowdown in discretionary spending could impact demand for Dutch Bros' offerings, especially among its core younger demographic.
Bull Case: Dutch Bros Inc. presents a compelling growth opportunity, evidenced by its exceptional Q1 2026 results, including an impressive 31% total revenue growth and 8.3% system same-shop sales growth, marking seven consecutive quarters of transaction growth. Management has raised its full-year guidance across key metrics, reflecting strong confidence in its multi-year growth runway to 2,029 shops by 2029. The company's disciplined real estate strategy, including highly successful Clutch Coffee Bar conversions generating over 3x pre-conversion volumes, demonstrates efficient capital deployment and brand strength. Dutch Bros continues to widen its competitive moat through category-leading innovation, such as the new Myst Energy Refreshers and a successful food program rollout, driving customer loyalty and routine through its Dutch Rewards program and increasing brand awareness.
More Compelling & Why: Bear Case. Dutch Bros' Price-to-Earnings (P/E) ratio, currently between 83.15x and 94.2x, is substantially higher than its peer average of 57.1x, indicating a richly valued stock. The market's negative reaction post-earnings, despite strong operational performance, underscores concerns that even excellent execution is already priced in. The strongest argument for the bear case is the confluence of an extremely stretched valuation with increasing macroeconomic headwinds, such as declining consumer discretionary spending. My view would flip to bullish if the P/E ratio moderated significantly closer to industry averages, supported by a clear and sustained path to substantial margin expansion that is not solely reliant on top-line growth.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Dutch Rewards Program Penetration & Order Ahead Adoption	High penetration of the Dutch Rewards program and increasing Order Ahead adoption indicate strong customer loyalty, digital engagement, and provide valuable data for personalized marketing, driving repeat visits and transaction growth.	Quarterly reported percentage of transactions flowing through Dutch Rewards (currently 74%) and Order Ahead as a percentage of total transaction mix (currently ~15%).	Bullish: Dutch Rewards penetration increasing above 74% and Order Ahead adoption increasing above 15% in subsequent quarters. Bearish: Stagnation or decline in Dutch Rewards penetration or Order Ahead adoption.	Company earnings press releases and conference calls.	App store reviews for the Dutch Bros app. Mentions of 'Dutch Rewards' or 'Dutch Bros Order Ahead' on social media.	Apptopia/Sensor Tower: Dutch Bros app downloads, daily active users, engagement metrics.
New Food Program Rollout Completion & Attachment Rates	The successful rollout and adoption of the new food program are crucial for increasing average ticket size, driving new occasions, and contributing to overall same-shop sales growth.	Management commentary on the progress of the food rollout, specifically aiming for 'largely complete across our company-operated fleet by the end of Q3'. Monitor reported food attachment rates (currently low teens) and their impact on comp lift (tracking to 4%).	Bullish: Food rollout completed ahead of Q3 schedule for company-operated shops, or attachment rates exceeding low teens, or comp lift from food exceeding 4%. Bearish: Delays in rollout completion, or attachment rates declining, or comp lift from food falling below 4%.	Company earnings press releases and conference calls.	Social media mentions of 'Dutch Bros food' or specific food items. Online reviews mentioning food offerings.	Consumer card data: Average ticket size changes, food item purchase frequency. Menu pricing data providers: Tracking new food item availability and pricing.
New System Shop Openings and Clutch Coffee Bar Conversions	The pace and efficiency of new shop openings, especially successful conversions, demonstrate the company's ability to execute its growth strategy, expand market presence, and generate strong unit economics.	Total number of system shop openings reported quarterly. Specific updates on the completion rate of Clutch Coffee Bar conversions (expected largely complete across company-operated fleet by end of Q3 2026) and their reported average volumes.	Bullish: Reporting more than 41 shops opened in Q2, or exceeding the 'at least 185' full-year target. Clutch conversions completed ahead of Q3 schedule with continued outperformance (>3x pre-conversion volumes). Bearish: Slower pace of openings than Q1 (41 shops), or delays in Clutch conversions, or underperformance of new shops/conversions relative to system AUVs.	Company earnings press releases and conference calls.	Local news reports on new Dutch Bros openings in target markets. Company career pages for new shop hiring.	Geolocation data providers (e.g., Foursquare, SafeGraph): New store openings identified, foot traffic to new locations.
System Same-Shop Sales Growth (SSSG)	SSSG is a primary indicator of brand health, customer demand, and operational execution, directly impacting revenue and profitability. Sustained growth signals strong market acceptance and competitive advantage.	Quarterly system same-shop sales growth percentage. Specifically, watch for Q2 2026 SSSG relative to the 'approaching 5%' expectation, and subsequent quarters relative to the 4-6% full-year guidance.	Bullish: Q2 2026 SSSG at or above 5%, or full-year SSSG trending towards the high end of 4-6% range. Bearish: Q2 2026 SSSG below 5%, or full-year SSSG trending towards the low end or below the 4-6% range.	Company earnings press releases and conference calls (next expected in August 2026 for Q2 results).	Google Trends: 'Dutch Bros' search volume, 'Dutch Bros menu' search volume. Social media sentiment analysis for 'Dutch Bros'.	Placer.ai: Store foot traffic % change YoY for Dutch Bros locations. Consumer card data: Dutch Bros transaction volume and average ticket size.
Coffee Commodity Prices	Elevated coffee costs are a significant headwind to COGS and overall adjusted EBITDA margins. A normalization or decline in coffee prices would alleviate cost pressure and support margin expansion towards the long-term 30% contribution margin goal.	Average Arabica coffee futures prices (e.g., ICE Coffee C contract) on a monthly or quarterly basis. Management commentary on expected COGS pressure from coffee (currently ~60 bps for full year).	Bullish: Sustained decline in Arabica coffee futures prices below the $2.80-$3.00/lb range. Management indicating a reduction in expected full-year COGS pressure from coffee. Bearish: Continued elevation or increase in Arabica coffee futures prices above the $2.80-$3.00/lb range, or management indicating increased full-year COGS pressure from coffee. As of May 11, 2026, Arabica coffee futures remain elevated, with prices around $2.89-$3.22 per pound.	Intercontinental Exchange (ICE) Futures US for Arabica Coffee futures contracts. Company earnings press releases and conference calls for management commentary on COGS.	Financial news outlets (e.g., Bloomberg, Reuters) for commodity market reports on coffee prices.	Commodity data providers (e.g., S&P Global Platts, Refinitiv): Real-time coffee futures and spot prices.

Key Reported Metrics, Reratings Triggers & Results3 rows

Adjusted EBITDA is a crucial measure of operational profitability, reflecting the company's ability to manage costs and generate earnings from its core operatio

Key reported metrics
Metric	Last period	Why it matters
Adjusted EBITDA	26%	Adjusted EBITDA is a crucial measure of operational profitability, reflecting the company's ability to manage costs and generate earnings from its core operations, especially important amidst expansion and cost pressures.
System Same-Shop Sales Growth	8.3%	This metric reflects the health of existing shops and customer demand, indicating effective marketing, innovation, and customer retention. It's a key driver of profitability and long-term viability.
Total Revenues	31%	This is a primary indicator of overall business expansion and market penetration. Strong revenue growth demonstrates the success of new shop openings and existing shop performance, crucial for investor confidence.

Key Questions

Will Dutch Bros achieve its Q2 system same-shop sales growth target of "approaching 5%" and continue to see strong attachment rates and comp lift from the new f

Will Dutch Bros achieve its Q2 system same-shop sales growth target of "approaching 5%" and continue to see strong attachment rates and comp lift from the new food program as its rollout nears completion for company-operated shops by Q3?

Question 2: Can Dutch Bros' new Myst Energy Refreshers platform successfully expand its customer base and maintain its category leadership in customized energy, demonstrating resilience against increasing competition from larger chains in the next quarter?
Question 3: Will Dutch Bros continue to accelerate its system shop openings, including efficient Clutch Coffee Bar conversions, and effectively mitigate the impact of elevated coffee and occupancy costs to maintain its trajectory towards the 30% long-term contribution margin goal?

Earnings Transcript SummaryTable

2026-05-06 · 2026Q1 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
1. Disciplined Growth and People-Led Culture: Management consistently emphasized their 'people-led culture', continued investment in 'culture, development and leadership', and the 'long-term outlook remains incredibly bright' with 'disciplined growth'. They highlighted low operator turnover and a robust operator pipeline as key to their success and future expansion. 2. Transaction Driving Initiatives and Innovation: Christine Barone detailed various efforts to drive transactions, including the successful new food rollout, which is expected to be largely complete across company-operated shops by the end of Q3. They also focused on category-wide innovation, such as nostalgic throwback drinks and the new Myst Energy Refreshers, successful merch drops, and the Dutch Rewards program, which now accounts for 74% of transactions with increasing order ahead adoption. 3. Development Pipeline and Market Density: Management is focused on strengthening their 'development pipeline' with a 'clear path to 2,029 shops in 2029'. They stressed the strategy of 'densifying markets while we expand into new', citing Texas's strong performance as a prime example of how density drives brand outcomes. The efficiency of Clutch Coffee Bar conversions was also highlighted as a key tool for growth.	The call conveyed a highly positive and confident tone. The key takeaway is that Dutch Bros delivered exceptional first-quarter 2026 results, significantly exceeding expectations with strong total revenue growth of 31% and robust same-shop sales growth of 8.3%. This performance was driven by effective transaction-driving initiatives, including the successful new food rollout, category-leading innovation like Myst Energy Refreshers, and the strength of their Dutch Rewards program. Management expressed strong confidence in their long-term growth strategy, development pipeline, and ability to compete effectively in the expanding customized beverage category, leading to a raised full-year guidance. The company's people-led culture and strategic market densification remain central to its success.	For Q4 2025, total revenues grew 29% (or 29.4%). Company-operated shop revenue increased 30% (or 30.4%). Revenue growth for the Franchising and Other segments was not explicitly stated as a percentage in the prior quarter's earnings information. Compared to Q4 2025, total revenues and company-operated shop revenue both saw an acceleration in year-over-year growth in Q1 2026.	1. Competition in the Beverage/Energy Category: Analysts questioned Dutch Bros' ability to withstand 'intrusion from two of the largest restaurant chains' into the energy and refreshers categories, and specifically the impact of Starbucks' energy drink launch. Management Response: Christine Barone asserted that Dutch Bros is the 'category creator of customized energy' and their offerings are 'quite different'. She highlighted the complementary nature of their new Myst energy drink and Rebel, suggesting that increased competition could even lead more customers to try Dutch Bros' customization. Management stated they have not seen any impact from Starbucks' launch. 2. Pace of Development and Market Strategy: Analysts inquired why Dutch Bros isn't 'stepping on the gas with development' given strong performance, and how they ensure competitors don't 'beat you to some attractive markets'. They also asked about the factors behind Texas's high comp growth. Management Response: Management reiterated that they are 'adding sites into our development pipeline at a much more rapid rate' and have a strong operator pipeline. They emphasized their 'thoughtful' strategy of entering and then 'densifying within that market' to establish an 'everyday routine'. The success of Clutch conversions and Texas's performance were cited as evidence of brand strength even in competitive or new markets. 3. Food Rollout Performance and Impact: Analysts asked about the 'operational shakedown or implementation on food', if the 'comp lift still sort of tracking in that 4% range', and if the addition of a ninth SKU suggests further menu expansion. Management Response: Management stated the rollout is 'going very smoothly' and they are 'tracking on a system-wide basis to the 4% comp lift' for shops with food. They clarified that the ninth SKU (cake pop) was added strategically to drive afternoon business, and their overarching goal is to maintain the 'lowest SKU count, the lowest complexity possible' to achieve their transaction goals.	Total revenues increased an impressive 31%. Company-operated shop revenue increased 31%. Revenue growth for the Franchising and Other segments was not explicitly stated as a percentage in the transcript.

Transcript TidbitsTable

2026-05-06

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
Dutch Bros launched Myst Energy Refreshers, a new plant-powered energy platform, designed to expand its reach and attract a broader customer base, including potentially older demographics, by offering functional benefits like antioxidants, electrolytes, and lower calories. The company's CPG initiative is also building brand awareness and expanding its presence in select retail outlets, with initial results showing exceptional velocity.	Dutch Bros believes its success in innovation has prompted other large restaurant chains to enter the energy and refreshers categories, but it remains confident in its position as the category creator of customized energy. The company's unique offerings, such as blended and iced customized energy drinks with various flavor combinations, differentiate it from competitors. Dutch Bros is taking market share in both the coffee and energy markets. The brand's strength is evident in its Clutch Coffee Bar conversions, which are performing at nearly three times their pre-conversion volumes. The company has not observed any impact from Starbucks' recent energy drink launch on its trends. Notably, Dutch Bros' highest AUV shops consistently operate in close proximity to legacy competitors, often within a half-mile radius.	Dutch Bros continues to operate in a category of its own, anchored by a people-led culture and an all-day beverage platform. The company is poised to command a leadership position in the large and growing beverage category. The energy market is growing faster than the overall beverage category, and Dutch Bros is a leader in the customized energy market. The company's platform is optimized for to-go occasions, cold beverages, customization, and consistency, aligning with how customers desire to experience beverages.	Dutch Bros is raising its full-year guidance for 2026 due to strong Q1 performance and continued momentum into Q2. The company's path to 2,029 shops by 2029 remains clear, with confidence in accelerating long-term shop openings. The new food program rollout is expected to be largely complete across company-operated shops by the end of Q3 2026. Total revenues are projected to be between $2.05 billion and $2.08 billion, representing 25% to 27% growth year-over-year. System same-shop sales growth is estimated to be in the range of 4% to 6%, with Q2 approaching 5%. Adjusted EBITDA is estimated to be between $370 million and $380 million, with a midpoint contemplating approximately 30 basis points of net adjusted EBITDA margin pressure due to higher coffee and occupancy costs, partially offset by SG&A leverage. The long-term contribution margin goal of 30% remains, with normalization of coffee costs expected to help achieve this.	Coffee	The company's CPG initiative represents a broader theme of brand extension into consumer packaged goods. The high engagement and excitement around merch drops, including a resale market, indicate a broader trend of strong brand loyalty and community engagement that extends beyond direct product sales.	Our first quarter results meaningfully exceeded expectations. Total revenues increased an impressive 31%. Our transaction driving efforts maintained momentum from Q4, translating to 7 consecutive quarters of transaction growth. Our path to 2029 shops in 2029 remains very clear. Our AUVs are at record levels and new shop productivity remains in line with system averages. Our first shop in the Greater Chicago market is already pacing to a volume of approximately $4 million. In 2025, we received over 780,000 applications for just about 19,000 shop roles. These converted shops are already outperforming our system-wide AUVs and generating, on average, more than 3x their pre-conversion volumes. Texas, our largest comp state by shop count drove almost 20% same-shop sales growth in Q1. The Q1 LTO window was one of our strongest on record and drove an approximately 30% increase in LTO unit velocity versus the prior year. Our unaided awareness has more than doubled in the past 1.5 years. Select segments of the CPG business have higher SKU level velocity than the category leader in our initial wave of retailers. Our confidence to lead and command the category over the long term has never been stronger.	The updated full year 2026 guidance now contemplates approximately 60 basis points of total COGS pressure. Occupancy and other costs were 17.8% of company-operated shop revenue which is 130 basis points higher year-over-year, primarily due to higher rent on new shops as we shift more of our portfolio to build-to-suit leases, and higher repairs and maintenance costs. The midpoint of this range contemplates approximately 30 basis points of net adjusted EBITDA margin pressure. Coffee remains in that kind of $2.80 to $3 range. It has over the last 3 months since even our last call. So it has remained elevated.	Dutch Bros continues to invest in its people, culture, development, and leadership. Leadership turnover remains low, with operator-level turnover in the low single digits. The company has an operator pipeline of nearly 500 leaders ready for new opportunities as it grows. In 2025, Dutch Bros received over 780,000 applications for approximately 19,000 shop roles. The company ranks in the top 15% of all companies in employee engagement according to Gallup. Teams are improving labor deployment to match customer demand and streamline beverage production. While sales leverage drives labor efficiency, the company aims to reinvest in its people rather than significantly leverage the labor line for long-term margin improvements.

NotesTable

Date	Comment	Comment Type	Comment Sentiment	Link	Price Reaction
2026-05-06	Dutch Bros reported Q1 2026 results exceeding expectations, driven by 8.3% same-shop sales growth, successful food rollout, and the new energy drink 'Myst.' The company raised its full-year guidance across key metrics. Despite strong operational performance and a positive outlook, the stock declined 7.80% (t+2 days), significantly underperforming the market, suggesting investor concerns or higher-than-met expectations.	Earnings Transcript	Negative		-7.80% (vs SPY: -9.71%)

Upcoming Events3 rows

Catalyst ID	Estimated Timing	Estimated Date Start	Estimated Date End	Catalyst	Why It Matters	Ticker Or Theme Specific	Transcript Date	Source Type
BROS_87209eaa	largely complete across our company-operated fleet by the end of Q3	2026-07-01	2026-09-30	Completion of the new food program rollout across Dutch Bros' company-operated shops.	The food program has shown strong attachment rates (low teens, ahead of expectations) and positive customer feedback. Completing the rollout could further boost transaction growth, average unit volumes (AUVs), and overall revenue, positively impacting financial results and investor sentiment.	Ticker	2026-05-06	earnings_transcript
BROS_21f4683d	many Clutch conversions completed by the end of Q3	2026-07-01	2026-09-30	Completion of many Clutch Coffee Bar conversions to Dutch Bros branded shops.	Converted shops are significantly outperforming their pre-conversion volumes (more than 3x) and system-wide AUVs. Completing these conversions efficiently could drive substantial revenue growth and demonstrate effective capital deployment, positively impacting valuation and investor sentiment.	Ticker	2026-05-06	earnings_transcript
BROS_7ca15f7b	as the year progresses	2026-05-06	2026-12-31	The ongoing impact and potential normalization of elevated coffee commodity costs.	Higher coffee costs are expected to result in approximately 60 basis points of total COGS pressure for the full year, directly impacting gross margins and adjusted EBITDA. The actual trajectory of coffee prices remains uncertain and could materially affect profitability.	Theme	2026-05-06	earnings_transcript