Dutch Bros Earnings Soar, But Stock Still Falls 18% MTD

Dutch Bros (BROS) reported its fiscal 2025 Q4 earnings on Feb 12th, 2026. The company exceeded expectations with a 29.4% revenue increase to $443.61 million and a 357.9% rise in net income to $29.16 million. Guidance for 2026 includes revenue of $2.0–$2.03 billion and 181 new shop openings, aligning with its aggressive growth trajectory.

Revenue

Dutch Bros’ total revenue surged 29.4% year-over-year to $443.61 million in 2025 Q4. Company-operated shops accounted for the lion’s share of growth, contributing $409.57 million, while franchising and other segments added $34.03 million. This performance underscores the company’s dominance in its core markets and robust franchise expansion.

Earnings/Net Income

Earnings per share (EPS) soared 466.7% to $0.17 in 2025 Q4, compared to $0.03 in 2024 Q4. Net income also skyrocketed to $29.16 million, a 357.9% increase from $6.37 million in the prior year. The significant EPS increase underscores the company’s strong profitability growth.

Price Action

The stock price of Dutch Bros has faced recent headwinds, dropping 5.89% in the latest trading day and 17.62% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Dutch Bros (BROS) shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days resulted in a -5.08% return. The benchmark return was 55.21%, leading to an excess return of -60.29% and a CAGR of -1.30%. The strategy had a high volatility of 63.16% and a maximum drawdown of 66.10%, indicating significant risk and substantial losses.

CEO Commentary

Christine Barone, CEO, highlighted Dutch Bros’ 2025 performance, noting 28% revenue growth to $1.64 billion and 31% adjusted EBITDA growth to $303 million. She emphasized the team’s “exceptional execution,” with 154 new shops and system same-shop sales growth of 5.6% for the year. Strategic priorities include expanding to 2,029 shops by 2029, entering 7 new states (including North Carolina), and scaling innovations like CPG, loyalty programs, and food offerings.

Guidance

For 2026, Dutch Bros guided to revenue of $2.0 billion–$2.03 billion, 181 system shop openings (including 20 Clutch conversions), system same-shop sales growth of 3%–5%, and adjusted EBITDA of $355 million–$365 million. The CFO noted 200 bps of Q1 2026 COGS pressure from elevated coffee costs and food rollout, partially offset by SG&A leverage.

Additional News

Dutch Bros announced plans to expand into seven new states, including North Carolina, as part of its 2029 goal to operate 2,029 shops. The company also emphasized scaling non-transactional revenue streams, such as consumer packaged goods (CPG) and loyalty programs. Additionally, it highlighted a 475 regional operator pipeline, up from 400 in 2022, signaling confidence in franchise growth. These strategic moves aim to diversify revenue and strengthen market presence.