Dutch Bros Inc.

Dutch Bros Inc. operates and franchises drive-through beverage shops selling coffee, energy drinks and other customizable drinks. It earns revenue from company-operated shops, franchise royalties and other franchise-related activities. The shares trade on the New York Stock Exchange under BROS. Its fiscal year ends December 31.

Quarterly operating performance

Revenue grew 29.8% and adjusted EBITDA grew 29.6%. Adjusted EBITDA margin remained 18.4%. The adjusted measure removes interest, taxes, depreciation and amortization, plus stock compensation, acquisition-related costs and specified financing, restructuring and tax-receivable-agreement adjustments.

At September 30, the system had 1,273 shops: 960 company-operated and 313 franchised. It opened 48 shops in the quarter, including 42 company-operated locations. Company-operated comparable-shop sales rose 5.4%, with 1% more visits and 4.4% more spending per visit. Systemwide visit growth slowed from 1.7% in Q2 to 0.4% in Q3.

Company-operated shop gross margin improved to 21.3% from 21%. Lower labor costs as a share of sales and tariff refunds helped, while occupancy and other costs rose as more new shops used build-to-suit leases. Over nine months, higher coffee costs and the food program increased the food-and-packaging cost ratio despite the refund benefit. The refund amount was not separately quantified.

How the annual targets have changed

February's original 2026 outlook was revenue of $2 billion to $2.03 billion, comparable-shop growth of 3% to 5%, adjusted EBITDA of $355 million to $365 million, capital spending of $270 million to $290 million and at least 181 openings.

In May, the opening floor rose to 185 and the adjusted EBITDA range rose to $370 million to $380 million. August's forecast was revenue of $2.1 billion to $2.13 billion, comparable-shop growth of 5% to 6%, adjusted EBITDA of $385 million to $390 million and capital spending of $350 million to $370 million. August's forecast excluded the proposed Salad and Go transaction.

November's latest 2026 targets are revenue of at least $2.1 billion, comparable-shop growth of at least 5%, adjusted EBITDA of approximately $380 million, capital spending of $370 million to $390 million and at least 185 openings. The capital-spending midpoint is $100 million above February's; the adjusted EBITDA target is $20 million above the original range's midpoint but $7.5 million below August's midpoint.

The initial 2027 goal is approximately 250 shop openings. The next results will test existing-shop traffic, profitability and cash generation as the faster opening program approaches.

Cash, debt and lease commitments

First-nine-month operating cash flow was $297 million versus $215.9 million a year earlier. Property and equipment purchases were $214.6 million versus $170 million, leaving $82.5 million before acquisitions, escrow and other payments. Acquisition cash spending was separately $83.3 million, and the Salad and Go escrow deposit used $10 million before its Q4 refund.

At September 30, cash and cash equivalents were $194.6 million. Gross debt was $199.5 million, with a $197.6 million carrying value. The company had drawn $50 million on its $500 million revolver; after letters of credit, $430.2 million remained available.

Lease liabilities totaled $1.100 billion, including $407.4 million of finance leases and $693 million of operating leases. Tax receivable agreements, under which Dutch Bros shares specified tax savings with eligible owners, carried a separate $973.8 million liability. These commitments sit alongside bank debt.

The October 29 credit amendment revised negative covenants to provide greater flexibility for future capital spending. It had no material impact on the facility's borrowing terms.

Completed acquisitions and the returned deposit

Dutch Bros purchased Clutch Coffee assets, primarily leasehold interests, for $19.8 million in cash on January 23, 2026. Clutch had 22 locations operating or under construction in North Carolina and South Carolina.

The Arizona franchise buyback closed July 27, 2026, for $63.5 million in cash. The current report describes rights and assets for 32 locations and records approximately $13.5 million of net incremental revenue and $1.6 million of net income after closing through September 30. The shop-count rollforward separately reports 30 acquired franchise shops.

The company also agreed to acquire certain Salad and Go sites through a Chapter 11 proceeding and paid a $10 million escrow deposit in Q3. The latest report says the deposit was refunded in full in Q4. It does not report a completed acquisition of those sites.