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Dutch Bros posted Q1 adjusted EPS of 16 cents in line with estimates, and revenues rose 30.8% Y/Y to $464.4M.
BROS' systemwide same-shop sales climbed 8.3% Y/Y, driven by a 5.1% lift in same-shop transactions.
BROS raised 2026 revenues to $2.05-$2.08B and adjusted EBITDA to $370-$380M on early Q2 trends.
Dutch Bros Inc. (BROS - Free Report) reported first-quarter 2026 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Both metrics increased on a year-over-year basis.
The company’s first-quarter performance was supported by continued strength in comparable shops. Systemwide same-shop sales rose 8.3% year over year, driven by a 5.1% increase in same-shop transactions, underscoring sustained demand and solid execution.
BROS’ Q1 Earnings & Revenue Discussion
In first-quarter 2026, Dutch Bros reported adjusted earnings per share (EPS) of 16 cents, in line with the Zacks Consensus Estimate. It reported an adjusted EPS of 14 cents in the prior-year quarter.
Quarterly total revenues of $464.4 million beat the consensus mark of $447 million by 3.8%. The top line increased 30.8% year over year.
BROS’ Q1 Revenue Growth Broadens Across the Model
Company-operated shops remained the primary growth driver. In the first quarter, revenues from company-operated locations climbed to $429.1 million from $326.4 million a year ago, reflecting strength across the existing base and contributions from newer units.
Franchising and other revenues also advanced to $35.4 million from $28.7 million in the prior-year period. The combined expansion across revenue streams underpinned the quarter’s top-line outperformance.
Dutch Bros’ Q1 Comps Show Continued Transaction Momentum
Comparable-shop trends remained a key highlight. In the first quarter, company-operated same-shop sales increased 10.6%, supported by a 6.9% rise in company-operated same-shop transactions, indicating that traffic gains continued to complement broader sales growth.
Management emphasized ongoing transaction-driving initiatives, including marketing investments and newer programs designed to widen occasions and reinforce customer engagement. The company also pointed to strong market-level performance, with Texas cited as a notable contributor during the quarter.
BROS’ Q1 Margins Reflect Cost Pressures and Operating Leverage
At the shop level, first-quarter company-operated shop contribution rose 26.2% year over year to $121.3 million, while the contribution margin was 28.3%, reflecting a mixed cost environment.
During the quarter, beverage, food and packaging costs were 26.2% of company-operated shop revenues, up 120 basis points year over year, primarily due to higher coffee costs and expenses related to the food rollout. Labor costs were also 26.2% of company-operated shop revenues, but improved 120 basis points year over year on sales leverage. Occupancy and other costs increased to 17.8% of company-operated shop revenues, up 130 basis points, caused by higher rent on newer shops and elevated repairs and maintenance.
On the overhead line, adjusted SG&A totaled $66.5 million, or 14.1% of revenues, as the company generated leverage while continuing to invest in infrastructure and people. Adjusted EBITDA increased 26.2% year over year to $79.4 million.
Dutch Bros’ Q1 Balance Sheet
Dutch Bros closed the first quarter of 2026 with $263.5 million in cash and cash equivalents, compared with $316.4 million in the prior-year quarter. Net cash provided by operating activities was $84.7 million, more than doubling from $36.9 million a year earlier.
On the investing side, purchases of property and equipment totaled $57.0 million, up from $45.6 million in the year-ago quarter. Dutch Bros also recorded $19.8 million of asset acquisition spending versus none in the prior-year period, reflecting the Clutch Coffee transaction.
Total debt stood at $201.5 million at quarter end compared with $202.5 million as of the 2025 end.
BROS Raises 2026 View as Development Remains Active
Following the first-quarter performance and early second-quarter trends, management raised its 2026 outlook. The company now expects total revenues of $2.05-$2.08 billion, up from its prior projection of approximately $2.00-$2.03 billion. It also raised its same-shop sales growth expectation to about 4%-6% from 3%-5%, signaling greater confidence in sustained demand and traffic momentum. Profit expectations moved higher as well. Adjusted EBITDA is now projected at $370-$380 million, compared with the prior range of $355-$365 million.
Operational initiatives remained an important focus during the quarter. Dutch Bros opened 41 new system shops in the first quarter and ended the period with 1,177 system shops. It also advanced its new food program, reaching 485 system shops with food by quarter end, and noted food attachment rates tracking in the low teens. The company expects the rollout to be largely complete across the company-operated fleet by the end of the third quarter.
Dutch Bros lifted its expectation for total system new shop openings to at least 185 (up from 181 stores) while keeping capital expenditures projections unchanged at $270 million to $290 million.
BROS’ Zacks Rank & Other Key Picks
Dutch Bros currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
FIVE has a trailing four-quarter earnings surprise of 63.4%, on average. The Zacks Consensus Estimate for FIVE’s 2027 sales and EPS indicates growth of 11.3% and 19.2%, respectively, from the year-ago period’s levels.
Victoria's Secret & Co. (VSCO - Free Report) currently sports a Zacks Rank of 1. VSCO has a trailing four-quarter earnings surprise of 55.1%, on average.
The Zacks Consensus Estimate for VSCO’s 2027 sales and EPS indicates growth of 4.7% and 22.4%, respectively, from the year-ago period’s levels.
CAVA Group, Inc. (CAVA - Free Report) carries a Zacks Rank of 2 at present. CAVA delivered a trailing four-quarter earnings surprise of 26.5%, on average.
The Zacks Consensus Estimate for CAVA’s 2027 sales and EPS indicates growth of 18.2% and 32%, respectively, from the prior-year levels.
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Dutch Bros Q1 Earnings Meet Estimates, Revenues Beat on Strong Comps
Key Takeaways
Dutch Bros Inc. (BROS - Free Report) reported first-quarter 2026 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Both metrics increased on a year-over-year basis.
The company’s first-quarter performance was supported by continued strength in comparable shops. Systemwide same-shop sales rose 8.3% year over year, driven by a 5.1% increase in same-shop transactions, underscoring sustained demand and solid execution.
BROS’ Q1 Earnings & Revenue Discussion
In first-quarter 2026, Dutch Bros reported adjusted earnings per share (EPS) of 16 cents, in line with the Zacks Consensus Estimate. It reported an adjusted EPS of 14 cents in the prior-year quarter.
Dutch Bros Inc. Price, Consensus and EPS Surprise
Dutch Bros Inc. price-consensus-eps-surprise-chart | Dutch Bros Inc. Quote
Quarterly total revenues of $464.4 million beat the consensus mark of $447 million by 3.8%. The top line increased 30.8% year over year.
BROS’ Q1 Revenue Growth Broadens Across the Model
Company-operated shops remained the primary growth driver. In the first quarter, revenues from company-operated locations climbed to $429.1 million from $326.4 million a year ago, reflecting strength across the existing base and contributions from newer units.
Franchising and other revenues also advanced to $35.4 million from $28.7 million in the prior-year period. The combined expansion across revenue streams underpinned the quarter’s top-line outperformance.
Dutch Bros’ Q1 Comps Show Continued Transaction Momentum
Comparable-shop trends remained a key highlight. In the first quarter, company-operated same-shop sales increased 10.6%, supported by a 6.9% rise in company-operated same-shop transactions, indicating that traffic gains continued to complement broader sales growth.
Management emphasized ongoing transaction-driving initiatives, including marketing investments and newer programs designed to widen occasions and reinforce customer engagement. The company also pointed to strong market-level performance, with Texas cited as a notable contributor during the quarter.
BROS’ Q1 Margins Reflect Cost Pressures and Operating Leverage
At the shop level, first-quarter company-operated shop contribution rose 26.2% year over year to $121.3 million, while the contribution margin was 28.3%, reflecting a mixed cost environment.
During the quarter, beverage, food and packaging costs were 26.2% of company-operated shop revenues, up 120 basis points year over year, primarily due to higher coffee costs and expenses related to the food rollout. Labor costs were also 26.2% of company-operated shop revenues, but improved 120 basis points year over year on sales leverage. Occupancy and other costs increased to 17.8% of company-operated shop revenues, up 130 basis points, caused by higher rent on newer shops and elevated repairs and maintenance.
On the overhead line, adjusted SG&A totaled $66.5 million, or 14.1% of revenues, as the company generated leverage while continuing to invest in infrastructure and people. Adjusted EBITDA increased 26.2% year over year to $79.4 million.
Dutch Bros’ Q1 Balance Sheet
Dutch Bros closed the first quarter of 2026 with $263.5 million in cash and cash equivalents, compared with $316.4 million in the prior-year quarter. Net cash provided by operating activities was $84.7 million, more than doubling from $36.9 million a year earlier.
On the investing side, purchases of property and equipment totaled $57.0 million, up from $45.6 million in the year-ago quarter. Dutch Bros also recorded $19.8 million of asset acquisition spending versus none in the prior-year period, reflecting the Clutch Coffee transaction.
Total debt stood at $201.5 million at quarter end compared with $202.5 million as of the 2025 end.
BROS Raises 2026 View as Development Remains Active
Following the first-quarter performance and early second-quarter trends, management raised its 2026 outlook. The company now expects total revenues of $2.05-$2.08 billion, up from its prior projection of approximately $2.00-$2.03 billion. It also raised its same-shop sales growth expectation to about 4%-6% from 3%-5%, signaling greater confidence in sustained demand and traffic momentum. Profit expectations moved higher as well. Adjusted EBITDA is now projected at $370-$380 million, compared with the prior range of $355-$365 million.
Operational initiatives remained an important focus during the quarter. Dutch Bros opened 41 new system shops in the first quarter and ended the period with 1,177 system shops. It also advanced its new food program, reaching 485 system shops with food by quarter end, and noted food attachment rates tracking in the low teens. The company expects the rollout to be largely complete across the company-operated fleet by the end of the third quarter.
Dutch Bros lifted its expectation for total system new shop openings to at least 185 (up from 181 stores) while keeping capital expenditures projections unchanged at $270 million to $290 million.
BROS’ Zacks Rank & Other Key Picks
Dutch Bros currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
Five Below, Inc. (FIVE - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FIVE has a trailing four-quarter earnings surprise of 63.4%, on average. The Zacks Consensus Estimate for FIVE’s 2027 sales and EPS indicates growth of 11.3% and 19.2%, respectively, from the year-ago period’s levels.
Victoria's Secret & Co. (VSCO - Free Report) currently sports a Zacks Rank of 1. VSCO has a trailing four-quarter earnings surprise of 55.1%, on average.
The Zacks Consensus Estimate for VSCO’s 2027 sales and EPS indicates growth of 4.7% and 22.4%, respectively, from the year-ago period’s levels.
CAVA Group, Inc. (CAVA - Free Report) carries a Zacks Rank of 2 at present. CAVA delivered a trailing four-quarter earnings surprise of 26.5%, on average.
The Zacks Consensus Estimate for CAVA’s 2027 sales and EPS indicates growth of 18.2% and 32%, respectively, from the prior-year levels.