Third Quarter 2026
Filed Nov 4, 2026Dutch Bros Inc. Reports Third Quarter 2026 Financial Results Achieves 30% Revenue Growth Year-Over-Year Delivers 5.4% Company-Operated and 4.4% Systemwide Same Shop Sales Growth Announces Accelerated 2027 System Shop Opening Goal of 250 Shops
Third-quarter total revenues grew 29.8% to $549.8 million, net income increased to $37.2 million, and Adjusted EBITDA grew 29.6% to $101.1 million. Same shop sales remained positive, shop development continued, and 2026 revenue and same shop sales guidance was raised to at least $2.1 billion and at least 5%, respectively.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | $549.8M | – | 29.8% |
| Q3 2026 company-operated shops revenueGAAP | $515.0M | – | – |
| Q3 2026 franchising and other revenueGAAP | $34.83M | – | – |
| Q3 2026 cost of salesGAAP | $418.1M | – | – |
| Q3 2026 selling, general and administrative expenseGAAP | $78.95M | – | – |
| Q3 2026 income from operationsGAAP | $52.81M | – | – |
| Q3 2026 interest expense, netGAAP | −$7.08M | – | – |
| Q3 2026 income before income taxesGAAP | $46.03M | – | – |
| Q3 2026 income tax expenseGAAP | $8.81M | – | – |
| Q3 2026 net incomeGAAP | $37.23M | – | – |
| Q3 2026 net income attributable to Dutch Bros Inc.GAAP | $27.16M | – | – |
| Q3 2026 basic net income per share of Class A common stockGAAP | $ 0.20 | – | – |
| Q3 2026 diluted net income per share of Class A common stockGAAP | $ 0.20 | – | – |
| Q3 2026 weighted-average diluted shares of Class A common stock outstandingGAAP | 138.2M | – | – |
| Q3 2026 company-operated shops gross profitGAAP | $ 109,479 (in thousands), 21.3% | – | – |
| Q3 2026 company-operated shops contributionnon-GAAP | $ 144,476 (in thousands), 28.1% | – | – |
| Q3 2026 adjusted selling, general, and administrative expensesnon-GAAP | $ 69,573 (in thousands), 12.7% | – | – |
| Q3 2026 EBITDAnon-GAAP | $ 92,454 (in thousands), 16.8% | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $ 101,055 (in thousands), 18.4% | – | 29.6% |
| Q3 2026 adjusted net incomenon-GAAP | $44.10M | – | – |
| Q3 2026 adjusted net income per fully exchanged share of diluted common stocknon-GAAP | $ 0.25 | – | – |
| Q3 2026 systemwide same shop salesother | 4.4% | – | – |
| Q3 2026 systemwide same shop sales ticketother | 4.0% | – | – |
| Q3 2026 systemwide same shop sales customer visitsother | 0.4% | – | – |
| Q3 2026 company-operated same shop salesother | 5.4% | – | – |
| Q3 2026 company-operated same shop sales ticketother | 4.4% | – | – |
| Q3 2026 company-operated same shop sales customer visitsother | 1.0% | – | – |
| Q3 2026 systemwide salesother | $702.2M | – | – |
| Q3 2026 Dutch Rewards customer visits as a percentage of total customer visitsother | 74 % | – | – |
| Nine months ended September 30, 2026 total revenuesGAAP | $1.57B | – | – |
| Nine months ended September 30, 2026 income from operationsGAAP | $157.5M | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | $112.5M | – | – |
| Nine months ended September 30, 2026 diluted net income per share of Class A common stockGAAP | $ 0.60 | – | – |
| Nine months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $ 294,142 (in thousands), 18.8% | – | – |
| Nine months ended September 30, 2026 adjusted net incomenon-GAAP | $131.0M | – | – |
| Nine months ended September 30, 2026 adjusted net income per fully exchanged share of diluted common stocknon-GAAP | $ 0.74 | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $297.0M | – | – |
| Nine months ended September 30, 2026 net cash used in investing activitiesGAAP | −$307.9M | – | – |
| Nine months ended September 30, 2026 net cash used in financing activitiesGAAP | −$63.97M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Company-operated shopsCompany-operated same shop sales increased 5.4%, with ticket up 4.4% and customer visits up 1.0%. The Company opened 42 company-operated shops and completed the reacquisition of the Phoenix East Valley franchise rights and assets consisting of 32 locations on July 27, 2026. | $515.0M | – | – |
| Franchising and otherThe Company opened 6 franchised shops. Franchised shop count was 313 at September 30, 2026, compared with 322 at September 30, 2025. | $34.83M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 and 2027 outlook
- Revenue2026 total revenues are now projected to be at least $2.1 billion.
- Note2026 same shop sales growth is now estimated to be at least 5%.
- Note2026 Adjusted EBITDA is now estimated to be approximately $380 million.
- Note2026 capital expenditures are now estimated to be between $370 million and $390 million.
- Note2026 total system shop openings are estimated to be at least 185.
- Note2027 total system shop openings are estimated to be approximately 250.
What drove it
- Opened 48 new shops during the third quarter, including 42 company-operated shops and 6 franchised shops.
- Total shop count was 1,273 at September 30, 2026, comprising 960 company-operated shops and 313 franchised shops.
- Company-operated same shop sales increased 5.4%, driven by 4.4% ticket growth and 1.0% customer-visit growth.
- Systemwide same shop sales increased 4.4%, driven by 4.0% ticket growth and 0.4% customer-visit growth.
- Dutch Rewards customer visits represented 74 % of total customer visits.
- Management cited beverage innovation, testing of new hot food platforms, enhanced digital capabilities, and delivery pilots as growth initiatives.
Concerns
- Company-operated shops gross profit was 21.3% in the third quarter, compared with 21.0% in the prior-year period, while company-operated shops contribution was 28.1%, compared with 27.8%.
- Adjusted EBITDA margin was 18.4% in both the third quarter of 2026 and the third quarter of 2025.
- Nine-month net cash used in investing activities was $ (307,859) (in thousands), compared with $ (169,936) (in thousands) in 2025.
- Cash and cash equivalents declined to $ 194,606 (in thousands) at September 30, 2026 from $ 269,404 (in thousands) at December 31, 2025.
- The release identifies risks including consumer discretionary spending, commodity inflation, supply-chain disruptions, labor costs, site availability, and integration of acquired businesses or assets.
What to watch
- Execution toward the 2026 total system shop-opening target of at least 185 and the accelerated 2027 target of approximately 250.
- Progress of same shop sales, including ticket and customer-visit trends.
- Delivery against 2026 capital expenditures estimated at between $370 million and $390 million.
- Integration and performance of the Phoenix East Valley franchise rights and assets reacquired on July 27, 2026.
- Development of beverage innovation, hot food platform tests, digital capabilities, and delivery pilots.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026 were $ 194,606 (in thousands), compared with $ 269,404 (in thousands) at December 31, 2025.
- Long-term debt, net of current portion, was $ 192,870 (in thousands) at September 30, 2026, compared with $ 196,295 (in thousands) at December 31, 2025.
- Current portion of long-term debt was $ 4,766 (in thousands) at September 30, 2026, compared with $ 3,881 (in thousands) at December 31, 2025.
- Nine-month net decrease in cash and cash equivalents was $ (74,798) (in thousands), compared with $ (26,159) (in thousands) in 2025.
- Property and equipment, net was $ 981,790 (in thousands) at September 30, 2026, compared with $ 824,502 (in thousands) at December 31, 2025.
Analysis
Dutch Bros delivered a growth-led third quarter. Total revenues rose 29.8% to $549.8 million from $423.6 million, while company-operated shops revenue was $515.0 million and franchising and other revenue was $34.8 million. The company opened 48 shops, including 42 company-operated shops, and ended the period with 1,273 locations. It also completed the July 27, 2026 reacquisition of the Phoenix East Valley franchise rights and assets consisting of 32 locations.
Comparable-shop performance remained positive. Company-operated same shop sales increased 5.4%, reflecting 4.4% ticket growth and 1.0% customer-visit growth. Systemwide same shop sales increased 4.4%, with ticket up 4.0% and customer visits up 0.4%. Dutch Rewards customer visits represented 74% of total customer visits, compared with 72% in the prior-year quarter.
Profitability expanded in dollars. Income from operations was $52.8 million compared with $41.5 million, net income was $37.2 million compared with $27.3 million, and Adjusted EBITDA grew 29.6% to $101.1 million from $78.0 million. Company-operated shops gross profit was 21.3% of revenue versus 21.0%, and company-operated shops contribution was 28.1% versus 27.8%. Adjusted EBITDA margin was unchanged at 18.4%.
The nine-month results show continued operating growth alongside elevated development investment. Net cash provided by operating activities was $297.0 million, while net cash used in investing activities was $307.9 million. Cash and cash equivalents were $194.6 million at September 30, 2026, compared with $269.4 million at December 31, 2025. Long-term debt, net of current portion, was $192.9 million.
Management raised 2026 total revenue guidance to at least $2.1 billion and same shop sales growth guidance to at least 5%. It retained total system shop-opening guidance of at least 185, guided Adjusted EBITDA to approximately $380 million, and projected capital expenditures of between $370 million and $390 million. For 2027, the company set a total system shop-opening target of approximately 250, while highlighting beverage innovation, hot food testing, digital capabilities, and delivery pilots as growth initiatives.
Management, verbatim
Dutch Bros continues to gain share in the high-growth beverage category. In the third quarter, we achieved our fourteenth consecutive quarter of positive same shop sales and ninth consecutive quarter of same shop customer visit growth. This is a testament to the strength of our brand, our differentiated people-led culture, and our strategic focus on expanding customer occasions.
Christine Barone, Chief Executive Officer and President of Dutch Bros
The investments we’ve made in our people, tools, and processes over the past several years have enabled seamless execution by our teams and strengthened the foundation of our business. As we look ahead to 2027, we’re building on that foundation and unlocking new growth opportunities across the business. From accelerating our pace of beverage innovation to testing new hot food platforms, enhancing digital capabilities and piloting delivery, we’re creating more reasons for new and existing customers to choose Dutch Bros.
Christine Barone, Chief Executive Officer and President of Dutch Bros
Not in the filing
stated, not guessed- Prior-quarter comparisons were not reported for the listed third-quarter metrics.
- A consolidated gross margin was not reported.
- Quarterly operating cash flow, quarterly investing cash flow, quarterly financing cash flow, and quarterly free cash flow were not reported.
- Free cash flow was not reported.
- Share repurchases and dividends were not reported.
- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- GAAP and non-GAAP tax rates were not reported.
- No 2027 revenue, gross margin, operating-expense, tax-rate, Adjusted EBITDA, or capital-expenditure guidance was reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.