Coffee chain Dutch Bros (NYSE: BROS) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 30.8% year on year to $464.4 million. The company’s full-year revenue guidance of $2.07 billion at the midpoint came in 0.9% above analysts’ estimates. Its non-GAAP profit of $0.16 per share was in line with analysts’ consensus estimates.
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Dutch Bros (BROS) Q1 CY2026 Highlights:
- Revenue: $464.4 million vs analyst estimates of $449.9 million (30.8% year-on-year growth, 3.2% beat)
- Adjusted EPS: $0.16 vs analyst estimates of $0.15 (in line)
- Adjusted EBITDA: $79.37 million vs analyst estimates of $74.02 million (17.1% margin, 7.2% beat)
- The company lifted its revenue guidance for the full year to $2.07 billion at the midpoint from $2.02 billion, a 2.5% increase
- EBITDA guidance for the full year is $375 million at the midpoint, above analyst estimates of $365.3 million
- Operating Margin: 7.4%, down from 8.7% in the same quarter last year
- Free Cash Flow was $84.72 million, up from -$8.67 million in the same quarter last year
- Locations: 1,177 at quarter end, up from 1,012 in the same quarter last year
- Same-Store Sales rose 8.3% year on year (4.7% in the same quarter last year)
- Market Capitalization: $7.28 billion
Company Overview
Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years.
With $1.75 billion in revenue over the past 12 months, Dutch Bros is a mid-sized restaurant chain, which sometimes brings disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base.
As you can see below, Dutch Bros grew its sales at an incredible 37.9% compounded annual growth rate over the last six years as it opened new restaurants and increased sales at existing, established dining locations.
This quarter, Dutch Bros reported wonderful year-on-year revenue growth of 30.8%, and its $464.4 million of revenue exceeded Wall Street’s estimates by 3.2%.
Looking ahead, sell-side analysts expect revenue to grow 23.6% over the next 12 months, a deceleration versus the last six years. Still, this projection is commendable and indicates the market is forecasting success for its menu offerings.
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Restaurant Performance
Number of Restaurants
A restaurant chain’s total number of dining locations often determines how much revenue it can generate.
Dutch Bros sported 1,177 locations in the latest quarter. Over the last two years, it has opened new restaurants at a rapid clip by averaging 16.8% annual growth, among the fastest in the restaurant sector. This gives it a chance to become a large, scaled business over time.
When a chain opens new restaurants, it usually means it’s investing for growth because there’s healthy demand for its meals and there are markets where its concepts have few or no locations.
Same-Store Sales
The change in a company's restaurant base only tells one side of the story. The other is the performance of its existing locations, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales provides a deeper understanding of this issue because it measures organic growth at restaurants open for at least a year.
Dutch Bros has been one of the most successful restaurant chains over the last two years thanks to skyrocketing demand within its existing dining locations. On average, the company has posted exceptional year-on-year same-store sales growth of 5.8%. This performance along with its meaningful buildout of new restaurants suggest it’s playing some aggressive offense.
In the latest quarter, Dutch Bros’s same-store sales rose 8.3% year on year. This growth was an acceleration from its historical levels, which is always an encouraging sign.
Key Takeaways from Dutch Bros’s Q1 Results
We were impressed by how significantly Dutch Bros blew past analysts’ revenue expectations this quarter. We were also excited its same-store sales outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. Investors were likely hoping for more, and shares traded down 1.1% to $58.56 immediately following the results.
Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
