Dutch Bros Inc
NYSE:BROS
Dutch Bros Inc
In a landscape dominated by coffee behemoths, Dutch Bros Inc. has carved out a strong presence with a unique blend of community-focused service and energetic branding. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company has remained true to its roots by maintaining a small-town charm while rapidly expanding across the western United States. Dutch Bros operates through a drive-thru kiosk model that distinguishes itself with a focus on speed, efficiency, and exceptional customer service. The vibrant, youthful appeal is not merely a marketing tactic; it's embedded in the company's DNA with every barista encouraged to engage wholeheartedly with customers. Behind the counter, the culture is inclusive and incentivizes employees to not just serve drinks but also to create memorable experiences, loyal clientele, and an overall positive atmosphere.
Dutch Bros generates its revenue primarily through its expansive coffee and beverage selection, encompassing a variety of specialty coffees, teas, energy drinks, and smoothies. The secret sauce lies in its ability to create high-margin, customizable drinks that cater to a diverse customer base looking for more than just caffeine; it seeks an experience. With over 400 locations, the company's simplistic but effective drive-thru concept minimizes real estate and operational costs, allowing Dutch Bros to maintain profitability through high-volume sales. The company's strategic franchising model complements its vision of growth by entrusting partners who share its commitment to community engagement and quality service. This combination of innovative business practices, coupled with a deep-rooted understanding of community interaction, helps Dutch Bros thrive in the competitive coffee industry landscape, making it a significant player worth watching in the market.
In a landscape dominated by coffee behemoths, Dutch Bros Inc. has carved out a strong presence with a unique blend of community-focused service and energetic branding. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company has remained true to its roots by maintaining a small-town charm while rapidly expanding across the western United States. Dutch Bros operates through a drive-thru kiosk model that distinguishes itself with a focus on speed, efficiency, and exceptional customer service. The vibrant, youthful appeal is not merely a marketing tactic; it's embedded in the company's DNA with every barista encouraged to engage wholeheartedly with customers. Behind the counter, the culture is inclusive and incentivizes employees to not just serve drinks but also to create memorable experiences, loyal clientele, and an overall positive atmosphere.
Dutch Bros generates its revenue primarily through its expansive coffee and beverage selection, encompassing a variety of specialty coffees, teas, energy drinks, and smoothies. The secret sauce lies in its ability to create high-margin, customizable drinks that cater to a diverse customer base looking for more than just caffeine; it seeks an experience. With over 400 locations, the company's simplistic but effective drive-thru concept minimizes real estate and operational costs, allowing Dutch Bros to maintain profitability through high-volume sales. The company's strategic franchising model complements its vision of growth by entrusting partners who share its commitment to community engagement and quality service. This combination of innovative business practices, coupled with a deep-rooted understanding of community interaction, helps Dutch Bros thrive in the competitive coffee industry landscape, making it a significant player worth watching in the market.
Revenue Growth: Dutch Bros reported 2025 revenues of $1.64 billion, up 28% year-over-year, with Q4 revenue of $444 million, up 29%.
Shop Expansion: The company opened 154 new shops in 2025, bringing the total to 1,136 system-wide, and plans to open at least 181 shops in 2026, including 20 Clutch Coffee Bar conversions.
Same-Shop Sales: System same-shop sales grew 5.6% for the year (7.7% in Q4), driven by strong transaction growth.
Profitability: Adjusted EBITDA rose 31% to $303 million for 2025, outpacing revenue growth.
Margins: Company-operated contribution margin reached 28.9% for the year, but coffee cost headwinds pressured Q4 company-operated shop contribution margin to 27.6%.
Guidance 2026: 2026 revenue projected at $2.0–$2.03 billion (22%–24% growth), system same-shop sales growth expected at 3%–5%, and adjusted EBITDA guided to $355–$365 million.
Food Program Rollout: The new food program expanded to 300+ shops by year-end, targeted to complete system rollout by end of 2026, delivering about a 4% comp lift in shops where active.
Loyalty & Digital: Dutch Rewards surpassed 15 million members, accounting for 72% of system transactions in 2025, and Order Ahead reached 14% of Q4 transactions.
