Core Viewpoint - Dutch Bros Inc. has seen a significant increase in call options activity, indicating strong bullish sentiment among traders, with a notable 94.6% rise in call options volume, suggesting high conviction in the stock's potential for price appreciation [4][3][11] Group 1: Stock Performance - Dutch Bros stock has rallied by over 21.1% year-to-date and 76.2% over the past 12 months, outperforming major competitors like Starbucks by 25% in the last quarter [5][6][7] - The current stock price is $68.50, with a 52-week range between $26.96 and $86.88, and a price target of $75.21, indicating a potential upside of 10.24% [2][8] Group 2: Financial Metrics - Dutch Bros reports a gross profit margin of 26.3%, which is higher than Starbucks' 25%, highlighting its competitive edge despite being a smaller company with a market capitalization of $10.4 billion compared to Starbucks' $91.2 billion [8][9] - Deutsche Bank has increased its holdings in Dutch Bros by 12.2%, raising its net position to $37.8 million, supporting a bullish outlook for the stock [11] Group 3: Market Sentiment - Analysts have reiterated an Overweight rating for Dutch Bros, with a fair value estimate of $82 per share, suggesting a potential rally of up to 30% from current levels [12][13] - The stock's short interest has decreased by 9.8%, indicating a shift in market sentiment as bearish positions are being unwound in light of stronger financials and positive momentum [14]

So far during the tariff-driven pullback, few consumer-facing companies have been spared from investors' skittishness. Dutch Bros ( BROS ) is one of the few exceptions. The coffee chain, best known for its quick service and efficient drive-through lanes, has beenWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. H ...

Core Insights - Dutch Bros reported revenue of $355.15 million for the quarter ended March 2025, reflecting a year-over-year increase of 29.1% and surpassing the Zacks Consensus Estimate of $343.5 million by 3.39% [1] - The company's EPS for the quarter was $0.14, up from $0.09 in the same quarter last year, resulting in a surprise of 40% compared to the consensus estimate of $0.10 [1] Financial Performance - The stock of Dutch Bros has returned +13.3% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The company currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3] Operational Metrics - Total shop count at the end of the period was 1,012, slightly below the average estimate of 1,013 [4] - Franchised shop count was 317, in line with the average estimate of 316, while company-operated shops totaled 695, slightly below the estimate of 698 [4] - System same shop sales and transactions were reported at 4.7%, matching the average estimate [4] - Company-operated same shop sales and transactions increased by 6.9%, exceeding the average estimate of 5.4% [4] New Openings and Revenue Breakdown - Total net new shop openings were 30, compared to the average estimate of 32 [4] - Company-operated new openings were 25, below the average estimate of 28, while franchised new openings matched the estimate at 5 [4] - Revenues from franchising and other sources were $28.73 million, below the average estimate of $29.53 million, but representing a year-over-year increase of 6.4% [4] - Revenues from company-operated shops reached $326.42 million, surpassing the average estimate of $313.36 million, with a year-over-year change of 31.6% [4]

Financial Performance - Total revenues for Q1 2025 reached $355.152 million, a 29.1% increase from $275.099 million in Q1 2024[25] - Net income attributable to Dutch Bros Inc. for Q1 2025 was $15.353 million, compared to $7.062 million in Q1 2024, representing a 117.4% increase[25] - Company-operated shops generated revenues of $326.421 million in Q1 2025, up from $248.085 million in Q1 2024, reflecting a 31.6% growth[25] - Net income for the three months ended March 31, 2025, was $22,480,000, compared to $16,215,000 for the same period in 2024, representing a year-over-year increase of 38.5%[37] - Total revenues for the three months ended March 31, 2025, were $355.152 million, a 29.1% increase from $275.099 million in the same period of 2024[55] - Basic net income per share attributable to common stockholders increased to $0.13 in Q1 2025 from $0.08 in Q1 2024[101] - Company-operated shops segment revenue reached $326.4 million in Q1 2025, up 31.6% from $248.1 million in Q1 2024[115] - For the three months ended March 31, 2025, net income was $22,480,000, representing a 6.3% margin compared to $16,215,000 and a 5.9% margin for the same period in 2024[194] Assets and Liabilities - Total assets increased to $2.765 billion as of March 31, 2025, compared to $2.501 billion at the end of 2024, marking a 10.6% rise[23] - Current liabilities decreased to $196.745 million from $203.071 million at the end of 2024, a reduction of 3.5%[21] - Total stockholders' equity attributable to Dutch Bros Inc. increased to $599.058 million as of March 31, 2025, from $537.369 million at the end of 2024, a growth of 11.5%[23] - The company’s deferred income tax assets increased to $930.155 million as of March 31, 2025, compared to $742.126 million at the end of 2024, a 25.4% increase[21] - As of March 31, 2025, total long-term debt was $284.229 million, up from $238.009 million as of December 31, 2024, representing a 19.4% increase[76] - Total liabilities related to Tax Receivable Agreements (TRAs) were $799.5 million as of March 31, 2025, up from $627.834 million at the end of 2024[88] Expenses - Selling, general and administrative expenses increased to $58.921 million in Q1 2025, up from $46.194 million in Q1 2024, a rise of 27.5%[25] - Depreciation and amortization expenses for the three months ended March 31, 2025, were $26,430,000, compared to $21,253,000 in 2024, marking an increase of 24.4%[37] - The company incurred equity-based compensation expenses of $4,194,000 in Q1 2025, up from $1,933,000 in Q1 2024, reflecting a significant increase of 117.5%[37] - Total stock-based compensation expense for Q1 2025 was $4.2 million, compared to $1.9 million in Q1 2024, indicating a significant increase in equity-based compensation[93] - Selling, General, and Administrative expenses increased by $12.7 million, or 27.6%, to $58.9 million, primarily due to higher performance-based compensation and professional fees[1] Cash Flow - Cash and cash equivalents rose to $316.441 million, up from $293.354 million at the end of 2024, indicating an 7.9% increase[21] - Net cash provided by operating activities was $36,884,000, a decrease from $41,193,000 in the prior year, indicating a decline of 10.6%[37] - Cash and cash equivalents at the end of the period increased to $316,441,000 from $262,719,000, reflecting a growth of 20.4%[39] Operational Metrics - The company held 100% of the voting interest and 70.5% of the economic interest in Dutch Bros OpCo as of March 31, 2025[44] - As of March 31, 2025, Dutch Bros had 1,012 company-operated and franchised shops, a 15.5% increase from the previous year[124] - Systemwide same shop sales increased by 4.7%, while company-operated same shop sales rose by 6.9%[127] - Labor costs increased by 36.7% to $89.4 million, representing 27.4% of company-operated shops revenues, up 100 basis points from the previous year[138] - The average unit volume (AUV) for company-operated shops was $1,950, compared to $1,915 in the previous year[127] Future Outlook - The company expects to fund its capital requirements through operating cash flows and additional proceeds from its 2022 Credit Facility, which was amended to increase borrowing capacity by $150 million[1] - The company plans to continue expanding by opening additional company-operated shops and potentially reacquiring existing franchised shops[1] - The company has taken measures to gradually increase menu prices to offset inflationary pressures and maintain profitability[198] - The company anticipates that ongoing inflationary pressures, particularly in commodity and supply costs, will continue to affect operating results in the foreseeable future[198] Risks and Challenges - The company has experienced upward pressure on labor costs due to minimum wage increases in several states, including California, which will take effect in April 2024[196] - There is a potential risk of allergic reactions to products due to unidentified allergens, which could harm the company's business and operations[216] - The company has no control over "secret menu" style drinks created by customers, which may negatively impact public perception and health perceptions[218]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue increased by 29% year-over-year, reaching $355 million, which is an increase of $80 million compared to the same period last year [32] - Adjusted EBITDA for Q1 was $63 million, reflecting a 20% increase year-over-year [34] - System same shop sales growth was 4.7%, with transaction growth of 1.3% and ticket growth of 3.4% [33] Business Line Data and Key Metrics Changes - Company-operated same shop sales grew by 6.9%, with transaction growth contributing 3.7% [35] - Company-operated shop contribution was $96 million, a 30% increase year-over-year [35] - Beverage, food, and packaging costs accounted for 25% of company-operated shop revenue, which is 70 basis points favorable year-over-year [36] Market Data and Key Metrics Changes - The company opened 30 new shops in Q1, bringing the total system shop count to 1,012 [32] - The company anticipates maintaining the pace of new shop openings in Q2 and expects to open at least 160 system shops in 2025 [32][41] Company Strategy and Development Direction - The company aims to open a total of 2,029 shops by 2029, with a focus on sustainable transaction growth and addressing structural barriers [8][18] - The real estate strategy has been enhanced to allow newer markets time to build brand awareness and demand [15] - The company is investing in mobile ordering, throughput improvements, and food offerings to drive growth [24][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's ability to thrive despite a dynamic external environment, citing strong customer loyalty and brand enthusiasm [7] - The company is optimistic about maintaining strong traffic trends into Q2, with expectations for continued revenue growth [33][41] - Management acknowledged potential uncertainties in the broader consumer environment but remains confident in the company's growth trajectory [33] Other Important Information - The company has a robust training program for its employees, which is seen as a key differentiator in customer service [12] - The Dutch Rewards program accounted for approximately 72% of system transactions, indicating strong customer engagement [23] - The company is exploring opportunities in the consumer packaged goods (CPG) channel as a long-term growth strategy [110] Q&A Session Summary Question: Clarification on second quarter expectations - Management indicated strong momentum into Q2, with traffic trends aligning with expectations despite rolling off about 150 basis points of price [45][46] Question: New store productivity sustainability - Management noted that new shop productivity was strong in Q1 and expects this trend to continue throughout the year [50][51] Question: Food and beverage cost expectations - Management confirmed that food and beverage costs were in line with expectations, with anticipated pressure primarily from coffee prices [53][54] Question: Mobile order incrementality - Management reported seeing incrementality from mobile orders, with increased frequency and loyalty sign-ups contributing to overall growth [57][58] Question: Operational improvements for productivity - Management is implementing tools to enhance visibility during peak hours and identify bottlenecks to improve throughput [79][80] Question: Food opportunity and margin profile - Management is strategically launching food offerings to capture additional beverage opportunities while managing complexity [94][95]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue increased by 29% year-over-year to $355 million, representing an $80 million increase compared to the same quarter last year [32] - Adjusted EBITDA for Q1 was $63 million, a 20% increase year-over-year, reflecting strong operational performance [34] - System same shop sales growth was 4.7%, with transaction growth of 1.3% and ticket growth of 3.4% [33] Business Line Data and Key Metrics Changes - Company-operated same shop sales grew by 6.9%, with transaction growth contributing 3.7% [35] - Company-operated shop contribution was $96 million, a 30% increase year-over-year [35] - Beverage, food, and packaging costs accounted for 25% of company-operated shop revenue, which is 70 basis points favorable year-over-year [35] Market Data and Key Metrics Changes - The company opened 30 new shops in Q1, bringing the total system shop count to 1,012 [32] - The company anticipates maintaining the pace of new shop openings in Q2 and expects to open at least 160 system shops in 2025 [32][42] Company Strategy and Development Direction - The company aims to open a total of 2,029 shops by 2029, focusing on sustainable transaction growth and addressing structural barriers [7] - A strategic investment in real estate capabilities and market planning is expected to enhance new shop productivity and support accelerated growth [16] - The company is focusing on foundational transaction-driving initiatives, including innovation, paid advertising, and the Dutch rewards program [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's ability to thrive despite a dynamic external environment, citing strong customer loyalty and brand enthusiasm [6] - The company is mindful of potential uncertainties in the broader consumer environment but has seen strong traffic trends into April [33][114] - Management believes that the combination of strong cash generation and liquidity will support continued growth [41] Other Important Information - The company has a robust training program for its employees, which is seen as a key differentiator in customer service [12] - The Dutch rewards program accounted for approximately 72% of system transactions, indicating its effectiveness in driving customer engagement [22] Q&A Session Summary Question: Clarification on second quarter expectations - Management feels good about the momentum into Q2, with traffic trends aligning with expectations despite rolling off about 150 basis points of price [45][46] Question: New store productivity - New shop productivity was strong in Q1, with some of the best openings recorded, and management expects this trend to continue throughout the year [50] Question: Mobile order incrementality - Management noted that mobile order is driving increased frequency and rewards sign-ups, particularly benefiting morning traffic [56][60] Question: Labor costs and leadership investments - Management indicated that recent investments in shop leadership compensation are expected to offset labor cost increases, maintaining a flat trajectory moving forward [66] Question: Food opportunity and margin profile - Management is strategically launching food offerings to capture additional beverage opportunities while managing complexity, with food margins being lower than beverage margins but still contributing positively overall [94] Question: Brand resilience in a slowing macro environment - Management expressed confidence in the brand's value proposition and its ability to resonate with customers despite broader economic challenges [105][108]

Financial Performance - Total revenue for Q1 2025 reached $355.2 million, a 29% increase compared to $275.1 million in Q1 2024 [11] - Company-operated shop revenue increased to $326.4 million in Q1 2025 from $248.1 million in Q1 2024 [11, 20] - Adjusted EBITDA for Q1 2025 was $62.9 million, a 20% increase from $52.5 million in Q1 2024 [13] - Net income attributable to Dutch Bros Inc was $15.35 million in Q1 2025, compared to $7.06 million in Q1 2024 [36] Shop Growth - Total shop count increased to 1,012 in Q1 2025, up from 876 in Q1 2024, representing a 16% increase [10, 42] - Company-operated shops increased by 19% from 582 in Q1 2024 to 695 in Q1 2025 [10] - The company opened 25 new company-operated shops and 5 new franchised shops in Q1 2025 [42] Sales Metrics - Systemwide same shop sales increased by 4.7% in Q1 2025 [17, 42] - Company-operated same shop sales increased by 6.9% in Q1 2025 [17, 42] - Dutch Rewards transactions accounted for 71.8% of total transactions in Q1 2025, compared to 66.5% in Q1 2024 [42] Outlook - The company projects total system new shop openings of at least 160 for FY 2025 [26] - Revenue for FY 2025 is expected to be between $1.555 billion and $1.575 billion [26] - Same shop sales growth for FY 2025 is projected to be approximately 2% to 4% [26] - Adjusted EBITDA for FY 2025 is expected to be between $265 million and $275 million [26]

Exhibit 99.1 Dutch Bros Inc. Reports First Quarter 2025 Financial Results Achieves 29% Year-Over-Year Revenue Growth in the First Quarter Delivers 4.7% System and 6.9% Company-Operated Same Shop Sales Growth in the First Quarter Continues Momentum with Another Quarter of Positive Transaction Growth GRANTS PASS, Oregon - May 7, 2025 - Dutch Bros Inc. (NYSE: BROS; "Dutch Bros" or the "Company"), one of the fastest-growing brands in the U.S. quick service beverage industry, today reported financial results for ...

The upcoming report from Dutch Bros (BROS) is expected to reveal quarterly earnings of $0.10 per share, indicating an increase of 11.1% compared to the year-ago period. Analysts forecast revenues of $343.5 million, representing an increase of 24.9% year over year.The current level reflects a downward revision of 1.5% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this peri ...

The fast-growing coffee chain is better loved by consumers than you-know-what in the business, according to a recent survey.If you're not quite sure what to make of Dutch Bros (BROS 1.98%) stock here, you're not alone. The coffee drive-thru chain's continued growth pushed shares sharply higher in 2024 and into early 2025. Then, like so many other tickers in February, this one was upended by tariff fears and has been drifting sideways ever since.Does that mean it's not the growth stock many investors thought ...