Revenue growth remains strong at 30.8% as of 2026Q1, though operating margins are constrained at 7.4% due to significant SG&A overhead associated with rapid national expansion.
| Sales/Revenue | 1.75B | 1.64B | 1.28B | 965.78M | 739.01M | 497.88M | 327.41M | 238.37M |
| Revenue Growth % | 28.39% | 27.88% | 32.64% | 30.68% | 48.43% | 52.06% | 37.36% | - |
| Cost of Goods Sold | 1.31B | 1.21B | 940.89M | 714.48M | 558.1M | 344.57M | 211.48M | 142.31M |
| COGS % of Revenue | - | 74.12% | 73.45% | 73.98% | 75.52% | 69.21% | 64.59% | 59.7% |
| Gross Profit | 441.43M | 423.95M | 340.13M | 251.3M | 180.92M | 153.3M | 115.94M | 96.06M |
| Gross Margin % | 25.26% | 25.88% | 26.55% | 26.02% | 24.48% | 30.79% | 35.41% | 40.3% |
| Gross Profit Growth % | - | 24.64% | 35.35% | 38.9% | 18.01% | 32.23% | 20.69% | - |
| Operating Expenses | 277.02M | 262.77M | 234.04M | 205.07M | 183.53M | 264.53M | 104.94M | 65.76M |
| OpEx % of Revenue | - | 16.04% | 18.27% | 21.23% | 24.83% | 53.13% | 32.05% | 27.59% |
| Selling, General & Admin | 274.86M | 259.39M | 234.04M | 205.07M | 183.53M | 264.53M | 104.94M | 65.76M |
| SG&A % of Revenue | - | 15.83% | 18.27% | 21.23% | 24.83% | 53.13% | 32.05% | 27.59% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.92M | 3.38M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 164.41M | 161.18M | 106.09M | 46.22M | -2.61M | -111.23M | 11M | 30.3M |
| Operating Margin % | 9.41% | 9.84% | 8.28% | 4.79% | -0.35% | -22.34% | 3.36% | 12.71% |
| Operating Income Growth % | - | 51.92% | 129.53% | 1869.6% | 97.65% | -1111.15% | -63.69% | - |
| EBITDA | 246.37M | 276.31M | 199.1M | 115.36M | 42.12M | -86.01M | 26.54M | 39.97M |
| EBITDA Margin % | 14.1% | 16.87% | 15.54% | 11.94% | 5.7% | -17.28% | 8.11% | 16.77% |
| EBITDA Growth % | 17.47% | 38.78% | 72.59% | 173.9% | 148.97% | -424.11% | -33.6% | - |
| D&A (Non-Cash Add-back) | 81.96M | 115.13M | 93M | 69.14M | 44.73M | 25.22M | 15.54M | 9.67M |
| EBIT | 166.89M | 163.93M | 111.91M | 49.24M | 1.36M | -112.47M | 10.64M | 30.82M |
| Net Interest Income | -13.69M | -28.3M | -27.02M | -32.32M | -18.02M | -7.09M | -3.74M | -2.35M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 13.69M | 28.3M | 27.02M | 32.32M | 18.02M | 7.09M | 3.74M | 2.35M |
| Other Income/Expense | -25.72M | -25.56M | -21.21M | -29.3M | -14.04M | -8.33M | -4.1M | -1.82M |
| Pretax Income | 138.69M | 135.62M | 84.89M | 16.92M | -16.65M | -119.56M | 6.9M | 28.48M |
| Pretax Margin % | 7.94% | 8.28% | 6.63% | 1.75% | -2.25% | -24.01% | 2.11% | 11.95% |
| Income Tax | 20.23M | 18.35M | 18.43M | 6.97M | 2.6M | -1.63M | 1.18M | 89K |
| Effective Tax Rate % | 14.59% | 13.53% | 21.72% | 41.18% | -15.61% | 1.36% | 17.04% | 0.31% |
| Net Income | 80.59M | 79.84M | 35.26M | 1.72M | -4.75M | -12.68M | 5.72M | 28.39M |
| Net Margin % | 4.61% | 4.87% | 2.75% | 0.18% | -0.64% | -2.55% | 1.75% | 11.91% |
| Net Income Growth % | 85.05% | 126.45% | 1952.27% | 136.15% | 62.51% | -321.47% | -79.83% | - |
| Net Income (Continuing) | 110.89M | 117.28M | 66.45M | 9.95M | -19.25M | -117.93M | 5.72M | 28.39M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 224.08M | 217.05M | 226.5M | 311.58M | 122.86M | 119.21M | 0 | 0 |
| EPS (Diluted) | 0.63 | 0.63 | 0.31 | 0.03 | -0.09 | -0.28 | 0.00 | 0.61 |
| EPS Growth % | 63.56% | 103.23% | 1019.13% | 130.24% | 67.29% | - | -100% | - |
| EPS (Basic) | - | 0.64 | 0.31 | 0.03 | -0.09 | -0.28 | 0.00 | 0.61 |
| Diluted Shares Outstanding | 127.38M | 125.76M | 114.75M | 62.07M | 51.87M | 45.86M | 46.75M | 46.75M |
| Basic Shares Outstanding | 127.14M | 125.33M | 114.24M | 62.07M | 51.87M | 45.86M | 46.75M | 46.75M |
| Dividend Payout Ratio | - | - | - | - | - | - | 135.37% | - |
Margin pressure from labor
According to recent financial disclosures, Dutch Bros maintained a robust revenue growth trajectory of 30.8% in 2026Q1, reflecting the company's aggressive unit-opening strategy and consistent consumer demand for its proprietary beverage offerings despite a challenging macroeconomic environment for discretionary retail spending across the broader restaurant industry.
The consistent double-digit revenue growth suggests that the company's 'fortress' market strategy is successfully driving volume, even as the business scales its company-operated footprint. Investors should monitor whether this pace of expansion can be sustained without diluting the average unit volume (AUV) as the brand penetrates less-dense geographic regions.
As reported in quarterly filings, gross margins fluctuated between 23.1% and 28.9% over the last ten quarters, indicating that the company's profitability profile is highly sensitive to input cost volatility and the operational leverage inherent in its company-operated shop model during periods of rapid expansion.
The compression in gross margin to 23.1% in 2026Q1 suggests that inflationary pressures on labor and ingredients may be outpacing the company's ability to implement price increases. This warrants further investigation into whether the current margin profile represents a temporary cyclical trough or a more permanent shift in the cost of doing business.
Based on the provided income statement data, operating income reached $34.3 million in 2026Q1, yet the operating margin of 7.4% suggests that SG&A expenses are scaling in tandem with revenue, limiting the potential for significant margin expansion as the company continues its national rollout of new locations.
The lack of clear operating leverage indicates that the costs associated with managing a larger, more complex company-operated shop base are currently offsetting the benefits of scale. Analysts should watch for evidence of improved overhead efficiency as the company matures its regional management structures and supply chain logistics.
Data from recent income statements reveals that SG&A costs remain a significant drag on profitability, with quarterly figures frequently exceeding $60 million, reflecting the heavy investment required to support the company's aggressive shop-opening cadence and the associated administrative overhead of a rapidly growing national restaurant chain.
The high level of SG&A relative to operating income suggests that the company is prioritizing long-term market share over immediate bottom-line optimization. Investors should monitor whether these costs stabilize as the shop-opening cadence eventually moderates or if they represent a structural requirement for maintaining the brand's high-velocity service model.
While revenue growth remains strong, the recent decline in net margin to 3.5% in 2026Q1, as noted in reported filings, raises questions regarding the long-term sustainability of the company's current unit-level economics when faced with rising regulatory costs and potential saturation in core Western markets.
Short-term profitability appears vulnerable to any deceleration in same-shop sales, which could quickly turn the company's high fixed-cost structure into a significant liability. The market may be underestimating the risk that the current expansion model is reliant on capital-intensive growth that may not yield the expected returns on invested capital in the long run.
Quick answers to the most common questions about buying BROS stock.
For fiscal year 2025, Dutch Bros Inc. (BROS) reported total revenue of $1.64B. This represents a 587.2% increase compared to $238.4M in 2019.
Dutch Bros Inc. (BROS) is profitable, generating $79.8M in net income for the fiscal year ending 2025 with a net profit margin of 4.9%.
Dutch Bros Inc. (BROS) reported an operating income of $161.2M, resulting in an operating profit margin of 9.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Dutch Bros Inc. (BROS) generated $423.9M in gross profit for the year, representing a gross profit margin of 25.9%. This demonstrates the company's core pricing power and production efficiency.