We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dutch Bros Q3 Earnings & Revenues Beat, Both Rise Y/Y, Stock Up
Read MoreHide Full Article
Key Takeaways
Dutch Bros posted Q3 EPS of 19 cents and revenues of $423.6M, topping consensus estimates.
Systemwide same shop sales rose 5.7%, with transactions up 4.7% year over year.
Management raised its 2025 outlook, targeting 2,029 shops by 2029 amid strong demand.
Dutch Bros Inc. (BROS - Free Report) reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
Following the release, Dutch Bros stock inched up 1.7% yesterday in the after-hours trading session.
Dutch Bros delivered a strong performance in the third quarter, reflecting the continued success of its differentiated growth strategy. The company achieved consistent transaction gains for the fifth straight quarter, supported by solid revenue momentum and sustained customer demand. New shop productivity remained strong, while systemwide AUVs reached record highs, underscoring the effectiveness of its expansion model and operational execution.
Management highlighted that the ongoing strength in same-shop sales and transaction growth through October reinforces confidence in achieving the long-term target of 2,029 shops in 2029. The company raised its full-year outlook for total revenues and same-shop sales growth, driven by the durability of the business model and the continued success of its transaction-driving initiatives.
BROS’ Earnings & Revenue Discussion
In third-quarter 2025, Dutch Bros reported adjusted earnings per share (EPS) of 19 cents, which beat the Zacks Consensus Estimate of 17 cents. Adjusted earnings increased 18.6% year over year.
Quarterly total revenues of $423.6 million beat the consensus mark of $411.1 million. Additionally, the top line rose 25.2% year over year.
At company-operated shops, revenues were $392.8 million, up 27.4% year over year. Franchising and other revenues amounted to $30.8 million, which increased 2.8% year over year.
Dutch Bros Comps Details
In the quarter under discussion, systemwide same-shop sales rose 5.7% compared with 2.7% in the prior-year quarter. Systemwide same-shop transactions increased 4.7% compared with 0.8% in the same period last year.
Company-operated same-shop sales advanced 7.4% compared with 4% in the year-ago quarter, while company-operated same-shop transactions improved 6.8% compared with 2.4% in the prior-year period.
Operating Highlights & Expenses of Dutch Bros
In the third quarter, Dutch Bros’ total costs and expenses were $382.1 million, up 25% year over year.
Adjusted selling, general, and administrative expenses — as a percentage of revenues — stood at 13.6%, contracting 130 basis points from 14.9% in the prior-year quarter.
Adjusted net income totaled $33.5 million, up 20.9% year over year.
Balance Sheet of BROS
As of Sept. 30, 2025, cash and cash equivalents totaled $267.2 million compared with $293.3 million as of Dec. 31, 2024. Long-term debt (less current portion) at the end of the third quarter totaled $196 million compared with $219.8 million reported as of Dec. 31, 2024.
Shop Openings and Expansion Plans
In the third quarter of 2025, the company opened 38 new shops, including 34 company-operated locations, across 17 states. Total system shop openings for 2025 are targeted at 160, with a back-weighted pipeline expected in the fourth quarter.
For 2026, the company expects to open approximately 175 total system shops. Any openings below the 2025 target are planned to be incremental to 2026, reflecting confidence in the company’s growth trajectory.
BROS’ 2025 Outlook Raised
Dutch Bros now expects annual total revenues to be in the band of $1.61-$1.615 billion compared with the prior expectation of $1.59-$1.6 billion. Same-shop sales growth is now expected to be approximately 5%, up from the previously projected 4.5%.
Adjusted EBITDA is still expected to be within $285-$290 million. Capital expenditures are still expected to be in the range of $240 million to $260 million.
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported third-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both top and bottom lines increased year over year.
Management flagged a notable shift from lower to middle-income diners, who account for approximately 40% of sales, citing inflation, weak wage growth and student loan repayments. Guidance for low to mid-single-digit comp declines in fourth-quarter 2025 and margin pressure in 2026, caused by rising beef costs and tariffs that will not be fully offset by pricing, fueled concerns about slowing growth despite menu innovation and expansion plans.
YUM! Brands, Inc. (YUM - Free Report) reported third-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
YUM announced the launch of a strategic review for the Pizza Hut brand aimed at maximizing long-term value for the company, its franchisees and partners. Also, it stated plans to complete the acquisition of 128 Taco Bell restaurants across the Southeast United States in the fourth quarter of 2025.
Starbucks Corporation (SBUX - Free Report) reported mixed fourth-quarter fiscal 2025 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The top line increased year over year, but the bottom line declined.
In the fiscal fourth quarter, the company reported progress of its “Back to Starbucks” turnaround strategy, citing a return to global comparable sales growth and improving momentum. Looking ahead, Starbucks remains focused on driving revenue growth, exercising cost discipline and achieving sustainable profitability over the long term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Dutch Bros Q3 Earnings & Revenues Beat, Both Rise Y/Y, Stock Up
Key Takeaways
Dutch Bros Inc. (BROS - Free Report) reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
Following the release, Dutch Bros stock inched up 1.7% yesterday in the after-hours trading session.
Dutch Bros delivered a strong performance in the third quarter, reflecting the continued success of its differentiated growth strategy. The company achieved consistent transaction gains for the fifth straight quarter, supported by solid revenue momentum and sustained customer demand. New shop productivity remained strong, while systemwide AUVs reached record highs, underscoring the effectiveness of its expansion model and operational execution.
Management highlighted that the ongoing strength in same-shop sales and transaction growth through October reinforces confidence in achieving the long-term target of 2,029 shops in 2029. The company raised its full-year outlook for total revenues and same-shop sales growth, driven by the durability of the business model and the continued success of its transaction-driving initiatives.
BROS’ Earnings & Revenue Discussion
In third-quarter 2025, Dutch Bros reported adjusted earnings per share (EPS) of 19 cents, which beat the Zacks Consensus Estimate of 17 cents. Adjusted earnings increased 18.6% year over year.
Quarterly total revenues of $423.6 million beat the consensus mark of $411.1 million. Additionally, the top line rose 25.2% year over year.
Dutch Bros Inc. Price, Consensus and EPS Surprise
Dutch Bros Inc. price-consensus-eps-surprise-chart | Dutch Bros Inc. Quote
At company-operated shops, revenues were $392.8 million, up 27.4% year over year. Franchising and other revenues amounted to $30.8 million, which increased 2.8% year over year.
Dutch Bros Comps Details
In the quarter under discussion, systemwide same-shop sales rose 5.7% compared with 2.7% in the prior-year quarter. Systemwide same-shop transactions increased 4.7% compared with 0.8% in the same period last year.
Company-operated same-shop sales advanced 7.4% compared with 4% in the year-ago quarter, while company-operated same-shop transactions improved 6.8% compared with 2.4% in the prior-year period.
Operating Highlights & Expenses of Dutch Bros
In the third quarter, Dutch Bros’ total costs and expenses were $382.1 million, up 25% year over year.
Adjusted selling, general, and administrative expenses — as a percentage of revenues — stood at 13.6%, contracting 130 basis points from 14.9% in the prior-year quarter.
Adjusted net income totaled $33.5 million, up 20.9% year over year.
Balance Sheet of BROS
As of Sept. 30, 2025, cash and cash equivalents totaled $267.2 million compared with $293.3 million as of Dec. 31, 2024. Long-term debt (less current portion) at the end of the third quarter totaled $196 million compared with $219.8 million reported as of Dec. 31, 2024.
Shop Openings and Expansion Plans
In the third quarter of 2025, the company opened 38 new shops, including 34 company-operated locations, across 17 states. Total system shop openings for 2025 are targeted at 160, with a back-weighted pipeline expected in the fourth quarter.
For 2026, the company expects to open approximately 175 total system shops. Any openings below the 2025 target are planned to be incremental to 2026, reflecting confidence in the company’s growth trajectory.
BROS’ 2025 Outlook Raised
Dutch Bros now expects annual total revenues to be in the band of $1.61-$1.615 billion compared with the prior expectation of $1.59-$1.6 billion. Same-shop sales growth is now expected to be approximately 5%, up from the previously projected 4.5%.
Adjusted EBITDA is still expected to be within $285-$290 million. Capital expenditures are still expected to be in the range of $240 million to $260 million.
BROS’ Zacks Rank
Dutch Bros currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Retail-Wholesale Releases
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported third-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both top and bottom lines increased year over year.
Management flagged a notable shift from lower to middle-income diners, who account for approximately 40% of sales, citing inflation, weak wage growth and student loan repayments. Guidance for low to mid-single-digit comp declines in fourth-quarter 2025 and margin pressure in 2026, caused by rising beef costs and tariffs that will not be fully offset by pricing, fueled concerns about slowing growth despite menu innovation and expansion plans.
YUM! Brands, Inc. (YUM - Free Report) reported third-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
YUM announced the launch of a strategic review for the Pizza Hut brand aimed at maximizing long-term value for the company, its franchisees and partners. Also, it stated plans to complete the acquisition of 128 Taco Bell restaurants across the Southeast United States in the fourth quarter of 2025.
Starbucks Corporation (SBUX - Free Report) reported mixed fourth-quarter fiscal 2025 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The top line increased year over year, but the bottom line declined.
In the fiscal fourth quarter, the company reported progress of its “Back to Starbucks” turnaround strategy, citing a return to global comparable sales growth and improving momentum. Looking ahead, Starbucks remains focused on driving revenue growth, exercising cost discipline and achieving sustainable profitability over the long term.