Dutch Bros raises its guidance after sales soar
Dutch Bros apparently did not have any issues with a stronger Starbucks or a McDonald’s incursion last quarter.
“Our teams continue to bring the electric energy, kindness and connection that define the Dutch Bros experience and earn unrivaled customer engagement.”
The Tempe, Arizona-based beverage chain’s revenues rose 31% in the first quarter, thanks to strong traffic and same-store sales. In response, the company raised its expectations for revenues, sales, earnings and expected store openings.
Same-store sales rose 8.3% in the period, thanks to a 5.1% increase in transactions. At company shops, same-store sales increased 10.6%.
Net income increased slightly to $23.7 million, or 13 cents per share. EBITDA, or earnings before interest, taxes, depreciation and amortization, increased 26% to $79.4 million after adjusting for one-time events. Revenues were $464.4 million in the period.
“We’re seeing this strength in existing and new markets, throughout dayparts and customer segments,” Christine Barone, Dutch Bros CEO and the 2026 Restaurant Leader of the Year winner, said in a statement. “Our teams continue to bring the electric energy, kindness and connection that define the Dutch Bros experience and earn unrivaled customer engagement.”
The results led Dutch Bros to raise its expectations for the full year. Same-store sales are now expected to increase 4% to 6% and revenues are expected to be between $2.05 billion and $2.08 billion. The company expects to open “at least 185” new shops and adjusted EBITDA is expected to range from $370 million to $380 million.
Each of those metrics is up from the expectations the company established in February, when it reported fourth quarter earnings. For instance, the company had expected same-store sales to range from 3% to 5% and it initially expected 181 new shops.
Dutch Bros has grown at a steady clip for years and is now the nation’s third-largest coffee chain, though it deals mostly in cold beverages and doesn’t sell traditional drip coffee. System sales last year rose more than 22% and the chain now operates about 1,200 shops.
Those shops have been generating long lines of customers eager for the brand’s wide ranging beverage offerings such as espresso-based drinks and energy beverages. And its success is attracting competitors.
Its results came even as Starbucks, the Seattle-based coffee giant, found its own footing last quarter with 7.1% same-store sales growth. It also comes as large-scale chains push into the beverage market, notably McDonald’s, which this week introduced an expanded line of drinks and which is expected to add more this year.
