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Why Is Dutch Bros (BROS) Down 13.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Dutch Bros (BROS - Free Report) . Shares have lost about 13.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Dutch Bros due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Dutch Bros Inc. before we dive into how investors and analysts have reacted as of late.
Dutch Bros Q2 Earnings Beat Estimates
Dutch Bros reported second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
The quarter benefited from new shop growth, sustained comparable-shop momentum and transaction-driving initiatives. Systemwide same-shop sales rose 5.8% year over year, supported by a 1.7% increase in transactions.
BROS’ Q2 Earnings & Revenue Discussion
In the second quarter of 2026, Dutch Bros reported adjusted earnings per share of 33 cents, topping the Zacks Consensus Estimate of 29 cents by 13.8%. The figure increased 26.9% from 26 cents in the prior-year quarter.
Quarterly revenues of $550.9 million surpassed the consensus mark of $524 million by 5.1%. The top line increased 32.5% year over year from $415.81 million, reflecting contributions from new shops and higher comparable sales.
Dutch Bros’ Revenue Growth Broadens Across the Model
Company-operated shop revenues climbed 34% year over year to $510 million from $380.5 million. The increase reflected contributions from new locations and continued growth across comparable company-operated shops.
Franchising and other revenues advanced to $40.8 million from $35.3 million in the prior-year quarter. Dutch Bros opened 48 system shops during the period, comprising 44 company-operated shops and four franchised locations, and ended the quarter with 1,225 system shops.
BROS’ Q2 Comps Reflect Traffic and Ticket Gains
Company-operated same-shop sales increased 8.3% year over year. The result included 3.4% transaction growth and a 4.9% rise in ticket, showing that higher customer visits and spending supported the sales increase.
Systemwide same-shop sales advanced 5.8%, with ticket up 4.1%. Management cited the food rollout, maturation of newer shop vintages, brand marketing initiatives and customer segmentation within Dutch Rewards as key contributors to performance.
Dutch Bros’ Margins Reflect Cost Pressure and Leverage
Company-operated shop contribution increased 31.9% year over year to $155.97 million. The contribution margin was 30.6%, down from 31.1%, as higher coffee, food and occupancy costs offset part of the benefit from sales growth.
Beverage, food and packaging costs increased 80 basis points to 26.1% of company-operated shop revenues. Labor costs improved 120 basis points to 25.4% on sales leverage, while occupancy and other costs increased 50 basis points to 16.3%. Adjusted EBITDA rose 27.8% to $113.71 million.
BROS’ Q2 Balance Sheet and Liquidity
Dutch Bros ended the quarter with $268.6 million in cash and cash equivalents, compared with $269.4 million at the end of 2025. Total liquidity was approximately $699 million, including $430.6 million of available borrowing capacity under its revolving credit facility. At June 30, 2026, $50.0 million was outstanding under the facility, with remaining borrowing capacity net of $19.4 million in letters of credit.
Average capital expenditures per new shop were approximately $1.4 million. The company continued shifting toward build-to-suit leases and maintained its long-term target of deriving 60% of its shop portfolio from that development structure.
BROS’ Strategic Site Deal Supports Expansion
Dutch Bros agreed to acquire the real estate and related site assets of up to 65 Salad and Go locations across Arizona, Nevada, Oklahoma and Texas. The transaction is expected to close in the third quarter of 2026, subject to approvals and customary conditions.
The company expects to convert the acquired drive-thru locations into Dutch Bros shops in 2027. Management believes the sites will deepen density in markets where the brand already has awareness and support continued footprint growth. BROS’ 2026 outlook excludes any impact from the transaction.
Dutch Bros Raises 2026 Outlook
Following the second-quarter performance and the Phoenix franchise acquisition, management raised its 2026 revenue outlook to $2.10-$2.13 billion from $2.05-$2.08 billion. Systemwide same-shop sales growth is now expected between 5% and 6%, compared with the prior 4%-6% range.
Adjusted EBITDA is projected between $385 million and $390 million, up from $370-$380 million. Capital expenditures are expected to be $350-$370 million, while Dutch Bros continues to forecast at least 185 system shop openings in 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Dutch Bros has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Dutch Bros has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Dutch Bros belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Chipotle Mexican Grill (CMG - Free Report) , has gained 11.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Chipotle reported revenues of $3.35 billion in the last reported quarter, representing a year-over-year change of +9.3%. EPS of $0.33 for the same period compares with $0.33 a year ago.
For the current quarter, Chipotle is expected to post earnings of $0.29 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Chipotle. Also, the stock has a VGM Score of D.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Dutch Bros (BROS) Down 13.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Dutch Bros (BROS - Free Report) . Shares have lost about 13.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Dutch Bros due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Dutch Bros Inc. before we dive into how investors and analysts have reacted as of late.
Dutch Bros Q2 Earnings Beat Estimates
Dutch Bros reported second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
The quarter benefited from new shop growth, sustained comparable-shop momentum and transaction-driving initiatives. Systemwide same-shop sales rose 5.8% year over year, supported by a 1.7% increase in transactions.
BROS’ Q2 Earnings & Revenue Discussion
In the second quarter of 2026, Dutch Bros reported adjusted earnings per share of 33 cents, topping the Zacks Consensus Estimate of 29 cents by 13.8%. The figure increased 26.9% from 26 cents in the prior-year quarter.
Quarterly revenues of $550.9 million surpassed the consensus mark of $524 million by 5.1%. The top line increased 32.5% year over year from $415.81 million, reflecting contributions from new shops and higher comparable sales.
Dutch Bros’ Revenue Growth Broadens Across the Model
Company-operated shop revenues climbed 34% year over year to $510 million from $380.5 million. The increase reflected contributions from new locations and continued growth across comparable company-operated shops.
Franchising and other revenues advanced to $40.8 million from $35.3 million in the prior-year quarter. Dutch Bros opened 48 system shops during the period, comprising 44 company-operated shops and four franchised locations, and ended the quarter with 1,225 system shops.
BROS’ Q2 Comps Reflect Traffic and Ticket Gains
Company-operated same-shop sales increased 8.3% year over year. The result included 3.4% transaction growth and a 4.9% rise in ticket, showing that higher customer visits and spending supported the sales increase.
Systemwide same-shop sales advanced 5.8%, with ticket up 4.1%. Management cited the food rollout, maturation of newer shop vintages, brand marketing initiatives and customer segmentation within Dutch Rewards as key contributors to performance.
Dutch Bros’ Margins Reflect Cost Pressure and Leverage
Company-operated shop contribution increased 31.9% year over year to $155.97 million. The contribution margin was 30.6%, down from 31.1%, as higher coffee, food and occupancy costs offset part of the benefit from sales growth.
Beverage, food and packaging costs increased 80 basis points to 26.1% of company-operated shop revenues. Labor costs improved 120 basis points to 25.4% on sales leverage, while occupancy and other costs increased 50 basis points to 16.3%. Adjusted EBITDA rose 27.8% to $113.71 million.
BROS’ Q2 Balance Sheet and Liquidity
Dutch Bros ended the quarter with $268.6 million in cash and cash equivalents, compared with $269.4 million at the end of 2025. Total liquidity was approximately $699 million, including $430.6 million of available borrowing capacity under its revolving credit facility. At June 30, 2026, $50.0 million was outstanding under the facility, with remaining borrowing capacity net of $19.4 million in letters of credit.
Average capital expenditures per new shop were approximately $1.4 million. The company continued shifting toward build-to-suit leases and maintained its long-term target of deriving 60% of its shop portfolio from that development structure.
BROS’ Strategic Site Deal Supports Expansion
Dutch Bros agreed to acquire the real estate and related site assets of up to 65 Salad and Go locations across Arizona, Nevada, Oklahoma and Texas. The transaction is expected to close in the third quarter of 2026, subject to approvals and customary conditions.
The company expects to convert the acquired drive-thru locations into Dutch Bros shops in 2027. Management believes the sites will deepen density in markets where the brand already has awareness and support continued footprint growth. BROS’ 2026 outlook excludes any impact from the transaction.
Dutch Bros Raises 2026 Outlook
Following the second-quarter performance and the Phoenix franchise acquisition, management raised its 2026 revenue outlook to $2.10-$2.13 billion from $2.05-$2.08 billion. Systemwide same-shop sales growth is now expected between 5% and 6%, compared with the prior 4%-6% range.
Adjusted EBITDA is projected between $385 million and $390 million, up from $370-$380 million. Capital expenditures are expected to be $350-$370 million, while Dutch Bros continues to forecast at least 185 system shop openings in 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Dutch Bros has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Dutch Bros has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Dutch Bros belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Chipotle Mexican Grill (CMG - Free Report) , has gained 11.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Chipotle reported revenues of $3.35 billion in the last reported quarter, representing a year-over-year change of +9.3%. EPS of $0.33 for the same period compares with $0.33 a year ago.
For the current quarter, Chipotle is expected to post earnings of $0.29 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Chipotle. Also, the stock has a VGM Score of D.