Dutch Bros(US:BROS)2025-11-05 23:06Financial Performance - Total revenues for Q3 2025 reached $423.6 million, a 25.2% increase from $338.2 million in Q3 2024[25] - Net income for Q3 2025 was $27.3 million, compared to $21.7 million in Q3 2024, reflecting a 25.5% year-over-year growth[25] - Company-operated shops generated revenues of $392.8 million in Q3 2025, up from $308.3 million in Q3 2024, marking a 27.4% increase[25] - The company reported a basic net income per share of $0.14 for Q3 2025, compared to $0.11 for Q3 2024, reflecting a 27.3% increase[25] - The net income for the nine months ended September 30, 2025, was $88,120,000, compared to $58,472,000 for the same period in the previous year, indicating a year-over-year increase of approximately 50.8%[34] - Net income for the three months ended September 30, 2025, was $27.3 million, compared to $21.7 million for the same period in 2024, representing a 25.5% increase[106] - Diluted net income per share attributable to common stockholders for the nine months ended September 30, 2025, was $0.47, compared to $0.32 in 2024, representing a 46.9% increase[108] Revenue and Growth - Total revenues for the three months ended September 30, 2025, were $423.6 million, a 25.3% increase from $338.2 million in the same period of 2024[63] - Company-operated shops generated revenues of $392.8 million for the three months ended September 30, 2025, compared to $308.3 million in 2024, reflecting a 27.4% year-over-year growth[63] - The company-operated shops segment generated revenues of $1.1 billion for the nine months ended September 30, 2025, compared to $851.6 million in 2024, a 29.1% increase[125] - Total segment contribution for the nine months ended September 30, 2025, was $398.1 million, up from $318.8 million in 2024, reflecting a 24.9% increase[125] Assets and Liabilities - Total assets increased to $2.92 billion as of September 30, 2025, compared to $2.50 billion at the end of 2024, representing a 16.8% growth[21] - Total liabilities rose to $2.06 billion as of September 30, 2025, up from $1.74 billion at the end of 2024, indicating a 18.5% increase[21] - As of September 30, 2025, Dutch Bros Inc. reported total stockholders' equity of $865,029,000, an increase from $763,865,000 as of December 31, 2024, representing a growth of approximately 13.3%[34] Cash and Cash Equivalents - Cash and cash equivalents decreased to $267.2 million as of September 30, 2025, down from $293.4 million at the end of 2024, a decline of 8.9%[21] - Cash and cash equivalents at the end of the period for September 30, 2025, were $267,195,000, compared to $281,134,000 for the same period in 2024[42] Expenses - The cost of sales for Q3 2025 was $316.8 million, up from $248.2 million in Q3 2024, representing a 27.7% increase[25] - Selling, general, and administrative expenses increased by 13.5% for the three months ended September 30, 2025, amounting to $65,289,000[165] - The company reported a depreciation and amortization expense of $83,389,000 for the nine months ended September 30, 2025, compared to $67,484,000 for the same period in 2024[42] - Labor costs for company-operated shops were $108.1 million, representing 27.5% of revenues for the three months ended September 30, 2025[141] Tax and Compliance - The income tax expense for the three months ended September 30, 2025, was $7,661,000, compared to $4,698,000 for the same period in 2024, reflecting an effective tax rate increase to 21.9% from 17.8%[91] - The effective tax rate for the nine months ended September 30, 2025, was 15.7%, down from 22.4% in the same period of 2024, primarily due to tax deductions related to stock-based compensation[93] Operational Metrics - The company operated 1,081 shops across 24 U.S. states as of September 30, 2025, with 759 being company-operated and 322 franchised[49] - Systemwide same shop sales increased by 5.7% for the three months ended September 30, 2025, compared to 2.7% in the previous year[138] - Dutch Rewards transactions accounted for 71.8% of total transactions for the three months ended September 30, 2025, up from 67.2% in the previous year[138] Future Outlook - Dutch Bros Inc. plans to continue expanding its market presence and investing in new product development to drive future growth[25] - The company expects continued pressure from minimum wage increases, particularly with California's minimum wage rising to $20 per hour in April 2024[132] - Future labor cost increases may not be fully offset by operational efficiencies or menu price adjustments, impacting profitability[219]