Dutch Bros Surges After Strong Q3 Earnings and Upgraded Outlook
Dubai – Qahwa World
Dutch Bros (NASDAQ: BROS) reported impressive third-quarter results, surpassing Wall Street expectations for both earnings and revenue. The drive-thru coffee chain posted adjusted earnings of $0.19 per share, topping forecasts of $0.17, on revenue of $423.6 million versus the expected $413.6 million.
Revenue jumped 25.2 percent year-on-year, rising from $338.2 million in Q3 2024, while net income more than doubled to $27.3 million from $12.6 million. Same-store sales advanced 7.4 percent at company-operated shops and 5.7 percent system-wide. Dutch Bros also opened 38 new locations across 17 states, expanding its total footprint to 1,081 stores.
Chief Executive Officer Christine Barone highlighted the company’s resilience, stating that strong momentum through October prompted management to raise full-year guidance for both total revenue and same-store sales growth.
Despite the surge in sales, gross profit fell 8.5 percent year-over-year to $82.4 million, signaling higher costs for labor, commodities, or logistics. Nonetheless, operating income grew 27.6 percent to $41.5 million, and adjusted EBITDA rose 22.3 percent to $78 million, suggesting that scale and operational efficiency continue to buffer inflationary headwinds.
Key Financial Highlights
Revenue: $423.6 M (+25.2 % YoY)
Adjusted EPS: $0.19 (+11.8 % YoY)
Net Income: $27.3 M (+115.8 % YoY)
Operating Income: $41.5 M (+27.6 % YoY)
Adjusted EBITDA: $78 M (+22.3 % YoY)
Company-operated same-store sales: +7.4 %
System-wide same-store sales: +5.7 %
The raised guidance underscores management’s confidence in the brand’s growth trajectory. However, investors will closely watch gross-margin trends and the sustainability of same-store sales as Dutch Bros continues its aggressive expansion. Persistent cost pressures may require future pricing or operational adjustments, but the company’s accelerating profitability suggests its strategy is gaining traction.
