Dutch Bros Q3 Earnings & Revenues Beat, Both Rise Y/Y, Stock Up

Core Insights - Dutch Bros Inc. reported strong third-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate, reflecting a year-over-year increase in both metrics [1][4][9] Financial Performance - Adjusted earnings per share (EPS) for Q3 2025 were 19 cents, surpassing the consensus estimate of 17 cents, marking an 18.6% year-over-year increase [4] - Total revenues reached $423.6 million, exceeding the consensus mark of $411.1 million, and showing a 25.2% year-over-year growth [4] - Company-operated shop revenues were $392.8 million, up 27.4% year over year, while franchising and other revenues amounted to $30.8 million, increasing by 2.8% year over year [5] Sales and Transactions - Systemwide same-shop sales rose by 5.7%, compared to 2.7% in the prior-year quarter, while systemwide same-shop transactions increased by 4.7%, up from 0.8% in the same period last year [6] - Company-operated same-shop sales advanced 7.4%, compared to 4% in the year-ago quarter, with transactions improving by 6.8%, up from 2.4% in the prior-year period [6] Operational Highlights - Total costs and expenses for the quarter were $382.1 million, reflecting a 25% year-over-year increase [7] - Adjusted selling, general, and administrative expenses as a percentage of revenues decreased to 13.6%, down 130 basis points from 14.9% in the prior-year quarter [7] - Adjusted net income totaled $33.5 million, representing a 20.9% year-over-year increase [7] Balance Sheet - As of September 30, 2025, cash and cash equivalents were $267.2 million, down from $293.3 million as of December 31, 2024 [8] - Long-term debt at the end of Q3 totaled $196 million, compared to $219.8 million reported as of December 31, 2024 [8] Growth Strategy and Outlook - The company opened 38 new shops in Q3 2025, with a total of 160 system shop openings targeted for the year, and plans to open approximately 175 total system shops in 2026 [10] - Management raised its full-year revenue outlook to a range of $1.61-$1.615 billion, up from the previous expectation of $1.59-$1.6 billion, with same-shop sales growth now expected to be around 5% [11]