Dutch Bros Stock Volatility and Earnings Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy BROS?
Source: Fool
- Earnings Beat: Dutch Bros reported a 29% year-over-year increase in fourth-quarter sales to $443.6 million, surpassing analyst expectations of $424 million, indicating strong market demand and brand appeal.
- Profitability Challenges: Despite earnings per share soaring from $0.03 to $0.17, well above the expected $0.09, management's revenue guidance for fiscal year 2026 was slightly below market expectations, projecting a growth rate of approximately 22%.
- Cost Pressures Intensify: The latest Bureau of Labor Statistics report highlighted an 18% year-over-year rise in coffee prices, validating management's warnings about ingredient cost pressures, with profit margins expected to shrink by 0.6 percentage points next year, impacting overall profitability.
- Long-Term Growth Potential: Although the stock experienced short-term volatility, Dutch Bros aims to open at least 2,029 locations by the end of 2029, a significant increase from the current 1,136 shops, and the introduction of a broader menu is expected to drive future growth, despite potential short-term margin compression.
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Analyst Views on BROS
Wall Street analysts forecast BROS stock price to rise
13 Analyst Rating
12 Buy
1 Hold
0 Sell
Strong Buy
Current: 50.820
Low
63.00
Averages
76.64
High
85.00
Current: 50.820
Low
63.00
Averages
76.64
High
85.00
About BROS
Dutch Bros Inc. is an operator and franchiser of drive-thru shops, which is focused on serving hand-crafted beverages. The Company sells a range of customizable hot, iced and blended beverages. Coffee-based beverages include handcraft espresso shots for both hot and cold custom classic and signature coffee beverages. It also sells proprietary coffee-based Freeze blended beverages and cold brew. Its Private Reserve coffee is a 100% Arabica three-bean blend, roasted by the Company in Grants Pass, Oregon or Melissa, Texas facilities. The Company has two segments: Company-operated shops, and Franchising and other. The Company-operated shops segment includes retail coffee shop sales to end consumers. The Franchising and other segment includes bean and product sales to franchise partners and includes the initial franchise fees, royalties, and marketing fees. It has approximately 1,101 shops, of which over 779 are operated by the Company and 322 are franchised, across 26 states.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DUTCH BROS STOCK RISES 8.5% FOLLOWING STRONGER-THAN-EXPECTED Q4 REVENUE
- Company Performance: Dutch Bros shares increased by 8.5% following a strong performance in Q4.
- Revenue Results: The company's revenue exceeded analysts' expectations, contributing to the rise in stock value.
See More
DUTCH BROS STOCK RISES 18.7% IN PREMARKET TRADING FOLLOWING STRONG Q4 REVENUE RESULTS
- Dutch Bros Shares Surge: Dutch Bros shares increased by 18.7% in pre-market trading following a strong performance in their Q4 revenue report.
- Revenue Exceeds Expectations: The company's revenue for the fourth quarter surpassed analysts' expectations, contributing to the rise in stock value.
See More
Long-Term Growth Opportunities in Consumer Stocks
- Dutch Bros Expansion Plans: Dutch Bros aims to double its store count by 2029, currently operating 1,081 locations across 24 states, indicating significant market potential with plans for 7,000 stores, which could enhance long-term investor returns.
- Consistent Sales Growth: Dutch Bros has achieved transaction growth for five consecutive quarters, demonstrating resilience in consumer spending despite macroeconomic fluctuations, with future sales expected to strengthen as the economy improves.
- On Holding Sales Surge: On Holding reported a 35% year-over-year sales growth in Q3 2025, with a remarkable 94% increase in the Asia-Pacific region, highlighting the brand's strong growth potential in international markets, which is crucial for future expansion.
- Global Market Performance: On Holding's new Ginza store in Tokyo set a record for the highest monthly sales globally, while a new store in Bangkok achieved the highest daily opening sales in company history, showcasing its robust performance and expansion capabilities in the global market.
See More
Dutch Bros and Hershey Options Trading Activity Surges
- Dutch Bros Options Volume: Dutch Bros Inc saw options trading volume of 36,024 contracts, equivalent to approximately 3.6 million shares, representing 60.4% of its average daily trading volume over the past month, indicating strong market interest in the stock.
- High Demand Call Options: Notably, the $60 strike call option expiring on March 20, 2026, has seen 3,340 contracts traded today, representing about 334,000 underlying shares, suggesting investor expectations for future price increases.
- Hershey Options Activity: Hershey Company recorded an options trading volume of 14,351 contracts, approximately 1.4 million shares, accounting for 58.6% of its average daily trading volume over the past month, reflecting ongoing market interest in the company.
- Significant Call Option Trading: The $185 strike call option expiring on February 20, 2026, has seen a trading volume of 4,665 contracts today, representing around 466,500 underlying shares, indicating optimistic sentiment among investors regarding Hershey's future performance.
See More
Dutch Bros Q4 Revenue Beats Estimates but Guidance Raises Concerns
- Earnings Beat: Dutch Bros reported a 29% year-over-year increase in Q4 sales to $443.6 million, exceeding Wall Street's estimate of $424 million by 5%, indicating strong market demand and brand appeal.
- Significant Earnings Growth: Unadjusted earnings per share surged from $0.03 to $0.17, nearly doubling the average analyst expectation, reflecting effective strategies in cost control and sales growth.
- Slower Future Growth: Management guided for slower revenue growth and margin compression in 2026 due to the rollout of a new food menu, which, while expected to boost long-term sales, will pressure profitability in the short term.
- Stock Volatility: Despite a 17.7% surge at market open, the stock quickly reversed to a 1.8% decline as investors refocused on guidance targets, highlighting market uncertainty and caution regarding future growth prospects.
See More
Dutch Bros Stock Volatility and Earnings Analysis
- Earnings Beat: Dutch Bros reported a 29% year-over-year increase in fourth-quarter sales to $443.6 million, surpassing analyst expectations of $424 million, indicating strong market demand and brand appeal.
- Profitability Challenges: Despite earnings per share soaring from $0.03 to $0.17, well above the expected $0.09, management's revenue guidance for fiscal year 2026 was slightly below market expectations, projecting a growth rate of approximately 22%.
- Cost Pressures Intensify: The latest Bureau of Labor Statistics report highlighted an 18% year-over-year rise in coffee prices, validating management's warnings about ingredient cost pressures, with profit margins expected to shrink by 0.6 percentage points next year, impacting overall profitability.
- Long-Term Growth Potential: Although the stock experienced short-term volatility, Dutch Bros aims to open at least 2,029 locations by the end of 2029, a significant increase from the current 1,136 shops, and the introduction of a broader menu is expected to drive future growth, despite potential short-term margin compression.
See More
DUTCH BROS STOCK RISES 8.5% FOLLOWING STRONGER-THAN-EXPECTED Q4 REVENUE
- Company Performance: Dutch Bros shares increased by 8.5% following a strong performance in Q4.
- Revenue Results: The company's revenue exceeded analysts' expectations, contributing to the rise in stock value.
See More
DUTCH BROS STOCK RISES 18.7% IN PREMARKET TRADING FOLLOWING STRONG Q4 REVENUE RESULTS
- Dutch Bros Shares Surge: Dutch Bros shares increased by 18.7% in pre-market trading following a strong performance in their Q4 revenue report.
- Revenue Exceeds Expectations: The company's revenue for the fourth quarter surpassed analysts' expectations, contributing to the rise in stock value.
See More
Long-Term Growth Opportunities in Consumer Stocks
- Dutch Bros Expansion Plans: Dutch Bros aims to double its store count by 2029, currently operating 1,081 locations across 24 states, indicating significant market potential with plans for 7,000 stores, which could enhance long-term investor returns.
- Consistent Sales Growth: Dutch Bros has achieved transaction growth for five consecutive quarters, demonstrating resilience in consumer spending despite macroeconomic fluctuations, with future sales expected to strengthen as the economy improves.
- On Holding Sales Surge: On Holding reported a 35% year-over-year sales growth in Q3 2025, with a remarkable 94% increase in the Asia-Pacific region, highlighting the brand's strong growth potential in international markets, which is crucial for future expansion.
- Global Market Performance: On Holding's new Ginza store in Tokyo set a record for the highest monthly sales globally, while a new store in Bangkok achieved the highest daily opening sales in company history, showcasing its robust performance and expansion capabilities in the global market.
See More
Dutch Bros and Hershey Options Trading Activity Surges
- Dutch Bros Options Volume: Dutch Bros Inc saw options trading volume of 36,024 contracts, equivalent to approximately 3.6 million shares, representing 60.4% of its average daily trading volume over the past month, indicating strong market interest in the stock.
- High Demand Call Options: Notably, the $60 strike call option expiring on March 20, 2026, has seen 3,340 contracts traded today, representing about 334,000 underlying shares, suggesting investor expectations for future price increases.
- Hershey Options Activity: Hershey Company recorded an options trading volume of 14,351 contracts, approximately 1.4 million shares, accounting for 58.6% of its average daily trading volume over the past month, reflecting ongoing market interest in the company.
- Significant Call Option Trading: The $185 strike call option expiring on February 20, 2026, has seen a trading volume of 4,665 contracts today, representing around 466,500 underlying shares, indicating optimistic sentiment among investors regarding Hershey's future performance.
See More
Dutch Bros Q4 Revenue Beats Estimates but Guidance Raises Concerns
- Earnings Beat: Dutch Bros reported a 29% year-over-year increase in Q4 sales to $443.6 million, exceeding Wall Street's estimate of $424 million by 5%, indicating strong market demand and brand appeal.
- Significant Earnings Growth: Unadjusted earnings per share surged from $0.03 to $0.17, nearly doubling the average analyst expectation, reflecting effective strategies in cost control and sales growth.
- Slower Future Growth: Management guided for slower revenue growth and margin compression in 2026 due to the rollout of a new food menu, which, while expected to boost long-term sales, will pressure profitability in the short term.
- Stock Volatility: Despite a 17.7% surge at market open, the stock quickly reversed to a 1.8% decline as investors refocused on guidance targets, highlighting market uncertainty and caution regarding future growth prospects.
See More
Dutch Bros Stock Volatility and Earnings Analysis
- Earnings Beat: Dutch Bros reported a 29% year-over-year increase in fourth-quarter sales to $443.6 million, surpassing analyst expectations of $424 million, indicating strong market demand and brand appeal.
- Profitability Challenges: Despite earnings per share soaring from $0.03 to $0.17, well above the expected $0.09, management's revenue guidance for fiscal year 2026 was slightly below market expectations, projecting a growth rate of approximately 22%.
- Cost Pressures Intensify: The latest Bureau of Labor Statistics report highlighted an 18% year-over-year rise in coffee prices, validating management's warnings about ingredient cost pressures, with profit margins expected to shrink by 0.6 percentage points next year, impacting overall profitability.
- Long-Term Growth Potential: Although the stock experienced short-term volatility, Dutch Bros aims to open at least 2,029 locations by the end of 2029, a significant increase from the current 1,136 shops, and the introduction of a broader menu is expected to drive future growth, despite potential short-term margin compression.
See More
