Dutch Bros reported Q2 results ending 6/30/2026 on 8/5/2026. Some highlights:
- Opened 48 new shops, 44 of which were company-operated. 1,225 total locations as of June 30, 2026.
- Total revenues grew 32.5% to $550.9 million as compared to $415.8 million in the same period of 2025.
- Company-operated same shop sales increased 8.3% and company-operated same shop transactions increased 3.4% relative to the same period of 2025. Systemwide same shop sales increased 5.8% and systemwide same shop transactions increased 1.7% relative to the same period in 2025.
- Net income was $51.6 million as compared to $38.4 million in the same period of 2025.
- Adjusted EBITDA grew 27.8% to $113.7 million as compared to $89.0 million in the same period of 2025.
- Systemwide AUVs are record highs: $2,193,000 v. $2,053,000 for 6 months ended June 30th (2026 v. 2025).
- Shop Contribution Margin: $155,970 30.6% v. $118,236 31.1% (3 mos); $277,274 29.5% v. $214,301 30.3 (6 mos)
Updated guidance for the year:
- Total revenues are now projected to be between approximately $2.1 billion and $2.13 billion.
- Same shop sales growth is now estimated to be in the range of 5% to 6%.
- Adjusted EBITDA is now estimated to be between $385 million and $390 million.
- Capital expenditures are now estimated to be between $350 million and $370 million.
- Total system shop openings are estimated to be at least 185.
Compare to guidance provided last quarter:
- Total revenues are now projected to be between approximately $2.05 billion and $2.08 billion.
- Same shop sales growth is now estimated to be in the range of 4% to 6%.
- Adjusted EBITDA is now estimated to be between $370 million and $380 million.
- Capital expenditures are estimated to be between $270 million and $290 million.
- Total system shop openings are estimated to be at least 185.
Once again, Dutch Bros is killing it on the topline growth, both with new store openings AND increased same shop sales, which include nice transaction increases (so not merely the result of price increases)! Yes! New store openings are on track, with stores in the new Chicago market setting records! The concept travels well! AUVs continue to grow. Yes!
In positive distinction from last quarter, earnings growth roughly correlated with revenue growth this time around. Yes! The team even got shop contribution margins back above 30 for the quarter, which is management’s stated goal. Although the margin is not as high as it was in Q2 2025, and the six-month margin is at 29.5%, the margin has improved from the previous sequential quarters, and the improvement is quite a feat in light of elevated Arabica costs.
Looking forward, the company raised revenue guidance, raised the lower end of same shop sales guidance (in the conference call management said they were tracking at 5.5%), and raised earnings guidance. Some may not be pleased that the company did not raise the top end of same shop sales guidance.
The company massively raised CapEx guidance. Some may be concerned about the increased CapEx. Well, per the call, the raise includes the purchase of 31 franchisee locations in the Phoenix market for $63.5 million. That explains a lot. Some may be concerned that the CapEx guidance does NOT include the company’s $105 million purchase of 65 Salad and Go locations, which the company announced the same day as earnings.
Some have questioned 1) the price paid for the Salad and Go locations and 2) the locations purchased. Let’s look at price, shall we? In 2025, Dutch Bros bought 20 Clutch Coffees in the Carolinas for $20 million, $1 million per unit. Those were already up and running clones of Dutch Bros and in a new market for Dutch Bros. The rebranding and conversions were relatively quick and easy. It was an amazing deal for Dutch Bros!
The purchase of the 31 Phoenix franchise units at $63.5 million was about double the cost per unit at $2,048,000. While double the cost of the Clutch Coffee units, the Phoenix deal entailed no downtime, and no conversions costs: franchise one day, company-operated the next. And as Dutch Bros’ reports show, company-operated stores are consistently more profitable than franchise units. The conversion to company-operated stores is immediately accretive to earnings and is a good long-term play.
The purchase rights to 65 Salad and Go units for $105 million lands at $1,615,000 per unit. Thus, while cheaper than the Phoenix franchise purchase, the Salad and Go purchase has a 60% premium to the Clutch Coffee per unit price. Why did Dutch Bros pay so much more for these units, especially since they will have higher conversion costs than the Clutch Coffee acquisition entailed?
I believe Dutch Bros paid more for a few reasons. 1) One of Dutch Bros’ competitors also was bidding on rights to the locations. By bidding higher, Dutch Bros was able to keep a competitor from grabbing those locations. 2) Salad and Go had about 150 locations. By paying more, Dutch Bros likely was able to have the pick of the litter for the best locations. 3) This is 65 locations–over three times the locations purchased in the Clutch Coffee acquisition. A large real estate grab in one fell swoop is valuable to the company’s future and worth a premium.
As to location of Salad and Go units, they are in Texas, Arizona, Nevada, and Oklahoma, markets where Dutch Bros already has a strong presence. Some question the logic of buying rights to 65 units in four states where Dutch Bros presence already is strong.
Let’s take a look. Currently, Dutch Bros has the following: 230 units in TX, 103 units in AZ, 41 units in NV, and 25 units in Okay. That might seem like a lot…and Dutch Bros is buying rights to open 65 more locations across these four states! What?!? Well, before one cries OVERSATURATION and CANNIBALIZATION, let’s look at the number of Starbucks locations in these states. Starbucks has approximately: 1,485 units in TX, 650 units in AZ, 183 units in Nevada, and 128 units in OK. That’s 399 Dutch Bros units v. 2,446 Starbucks units in the same four-state area. Yeah, probably room for Dutch Bros to add 65 locations without worrying too much about oversaturation and cannibalization.
Rather than arguing the Salad and Go deal was a bad deal compared to the Clutch Coffee deal, I would submit that the Clutch Coffee deal was an absolute steal, which is rare, and the Salad and Go deal was just a different deal with different considerations. One thing’s for sure, converting 65 Salad and Go units across four states into Dutch Bros units is going to take a heck of a lot less time than opening the same from scratch!
On a side note, the $105 million Dutch Bros is paying for the Salad and Go unit rights is enough to pay all of Salad and Go’s creditors in its bankruptcy. That’s real businesses and real people who are being made whole by Dutch Bros and its customers. Radiate Kindness, baby!
Moving on, Dutch Bros continues to face pressure on Arabica, about 10% of COGs. By June, Arabica had fallen approximately 43% from its all-time highs of last year and subsequently has climbed to about 25% off all-time highs. Milk, which is something like 20 – 30% of COGS remains stable at relatively low historical prices. Also, labor costs remain relatively contained, although when opening in new markets, the company deploys travel teams, which is expensive. Also, the continued shift to build to suit, which is necessary for rapid growth, does pressure margins (v. ground leases).
Overall, I’m pleased with Dutch Bros’ progress. The company is opening its first unit in Iowa, soon, which will be its 28th state. Onward!
Dutch Bros Inc. Reports Second Quarter 2026 Financial Results – Dutch Bros, Inc.
Dutch Bros Inc. (BROS) Q2 FY2026 earnings call transcript
FORM 8-K: 0001866581-26-000131
FORM 10-Q: 0001866581-26-000133