Dutch Bros targets 250 new shops as this year's profit goal slips

Dutch Bros plans to open about 250 shops in 2027, accelerating the expansion of its drive-through beverage chain. That ambition arrives alongside a modest cut to its latest 2026 earnings target and another increase in its capital-spending budget.

The business is still growing quickly. Third-quarter revenue rose almost 30%, and existing shops sold more. The investor question is how much cash the next stage of expansion will absorb while the company works to turn that growth into profit.

Our Dutch Bros company profile tracks its shop network, earlier targets, operating performance and acquisition spending.

More shops ahead, a lower near-term profit target

Dutch Bros now expects about $380 million of adjusted EBITDA for 2026, compared with August's $385 million to $390 million range. EBITDA measures earnings before interest, taxes, depreciation and amortization; the adjusted figure also removes items including stock compensation and acquisition-related costs.

At the same time, expected capital spending rose to $370 million to $390 million from $350 million to $370 million. The 2026 opening goal remains at least 185 shops. The new 250-shop goal applies to 2027.

Research by Ticker Byline shows that the midpoint of the 2026 capital-spending forecast is now $100 million higher than in February. The minimum opening goal has moved from 181 to 185 shops over that period. That gives the latest expansion plan a bigger investment backdrop than the original annual outlook.

The profit history is more favorable than a comparison with August alone suggests. February's adjusted EBITDA forecast was $355 million to $365 million. The latest $380 million target remains above that original range, after two earlier upgrades.

Existing shops are growing, with slower traffic gains

Third-quarter revenue reached $549.8 million and adjusted EBITDA rose 29.6% to $101.1 million. Its adjusted EBITDA margin was 18.4%, unchanged from a year earlier. Consolidated net income rose to $37.2 million from $27.3 million.

The chain ended September with 1,273 shops, including 960 operated by the company. Sales at comparable shops across the system rose 4.4%, with customer visits up 0.4% and average spending per visit up 4%. Visit growth had been 1.7% in the preceding quarter.

At company-operated shops, sales rose 5.4% on a comparable basis and visits increased 1%. Labor costs took a smaller share of sales and tariff refunds helped shop margins, while higher rents and other operating costs worked in the other direction. Coffee costs and the new food program also affected the nine-month cost picture.

The annual revenue forecast is now at least $2.1 billion and comparable-shop growth at least 5%. Those retain the lower ends of August's $2.1 billion to $2.13 billion and 5% to 6% ranges, while removing their upper limits.

Cash generation is rising, and expansion is using it

Operating cash flow reached $297 million in the first nine months, up from $215.9 million. Purchases of property and equipment used $214.6 million, leaving $82.5 million before acquisition spending and other payments.

Dutch Bros separately spent $83.3 million on acquisitions, including Arizona franchise shops and Clutch Coffee assets. Cash and cash equivalents ended September at $194.6 million, down from $269.4 million at year-end. Gross debt was $199.5 million, alongside substantial shop lease obligations.

The company also had $430.2 million of unused revolving-credit capacity. An October amendment gave it greater flexibility for capital expenditures without materially changing borrowing terms.

Expansion has more than one route

The Arizona franchise buyback closed July 27 for about $63.5 million. It brings existing shops into the company-operated business, adding sales and earnings alongside new openings.

A separate plan involved former Salad and Go sites. The quarterly report records a $10 million escrow deposit and says it was fully refunded in the fourth quarter. That planned transaction is therefore kept separate from the completed acquisitions.

Chief Executive Officer and President Christine Barone points to beverage innovation, food tests, digital tools and delivery pilots as growth opportunities. The next earnings reports will show whether those initiatives strengthen traffic as Dutch Bros prepares to build more shops. Its larger investment budget makes cash generation part of that test.