Dutch Bros Q3 revenue slightly beats estimates after new shop openings

Overview

• US quick service beverage chain's Q3 revenue grew yr/yr, slightly beating analyst expectations

• Company opened 48 new shops

Outlook

• Company now projects 2026 revenue of at least $2.1 bln

• Company expects 2026 same shop sales growth of at least 5%

• Company estimates 2026 adjusted EBITDA at about $380 mln

Result Drivers

• SAME SHOP SALES - Co said revenue growth was driven by higher same shop sales and increased customer visits

• STORE EXPANSION - Co attributed growth to 48 new shop openings and reacquisition of 32 Phoenix franchise locations

• NEW INITIATIVES - Co cited investments in beverage innovation, digital capabilities, and food platform tests as supporting growth

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 25 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for Dutch Bros Inc. is $71.00, about 62.9% above its November 3 closing price of $43.58

• The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 59 three months ago

Reuters Recommended Reads

• Nov 4 - McDonald's says US sales on the mend as promotions draw diners back

• Nov 4 - McDonald's Q3 revenue misses estimates on weaker US comparable sales

• Nov 4 - Applebee's owner Dine Brands beats Q3 sales estimates on value, menu innovation

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)