Dutch Bros (NYSE:BROS) Shares Gap Up on Better-Than-Expected Earnings

Dutch Bros Inc. (NYSE:BROS) shares gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $50.82, but opened at $59.50. Dutch Bros shares last traded at $52.1030, with a volume of 4,631,418 shares trading hands.

The company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.10 by $0.07. Dutch Bros had a net margin of 4.87% and a return on equity of 9.75%. The firm had revenue of $443.61 million for the quarter, compared to analyst estimates of $424.44 million. During the same period in the prior year, the business posted $0.07 EPS. The business’s revenue for the quarter was up 29.4% compared to the same quarter last year.

Key Dutch Bros News

Here are the key news stories impacting Dutch Bros this week:

• Positive Sentiment: Q4 results beat expectations — Dutch Bros reported an earnings and revenue beat with accelerating comps and strong operating metrics, which sparked the immediate rally. Dutch Bros Q4 Results (Business Wire)
• Positive Sentiment: Same-store sales and brand momentum — Management highlighted 7.7% same-store sales growth and rising brand penetration, supporting sustainable sales growth beyond new-store additions. Dutch Bros drives Q4 momentum (NRN)
• Positive Sentiment: Aggressive store rollout and M&A to speed market entry — Dutch Bros reiterated accelerated expansion (targeting ~2,029 locations by 2029 and ~181+ new shops in 2026) and recently acquired Clutch Coffee to help enter new markets faster — a growth catalyst for long-term revenue. Dutch Bros growth thesis (Seeking Alpha)
• Positive Sentiment: Analyst support and price-target momentum — Street buyers and recent analyst notes (e.g., TD Cowen reaffirmation) added conviction after the quarter, helping sentiment and buy-side interest. Dutch Bros stock reaction & analyst notes (Benzinga)
• Positive Sentiment: Unusually heavy call buying — Options flow showed a large increase in call purchases, signaling speculative or institutional bullish positioning ahead of/after the print (noted in market flow data).
• Neutral Sentiment: Guidance and margin outlook are mixed — Management guides for strong revenue (~$2B) but flags margin pressure from coffee input costs and food expansion; the company expects only modest margin contraction (~60 bps), which investors will monitor. Margin/guidance discussion (Seeking Alpha)
• Negative Sentiment: High valuation and execution risk — BROS trades at a rich multiple (P/E well above peers), so upside depends on continued high-single/low-double-digit unit growth and margin stability.
• Negative Sentiment: Insider selling and leverage noted in filings — Recent aggregated insider dispositions and rising liabilities highlighted in data summaries could be a caution for some investors; watch future insider activity and balance-sheet trends. QuiverQuant: Q4 results & insider data

Analyst Ratings Changes

Several research firms recently issued reports on BROS. Evercore set a $73.00 target price on Dutch Bros in a research note on Monday, January 5th. Mizuho boosted their price target on shares of Dutch Bros from $70.00 to $80.00 and gave the stock an “outperform” rating in a research note on Thursday, December 4th. Stifel Nicolaus reduced their price target on shares of Dutch Bros from $82.00 to $75.00 and set a “buy” rating on the stock in a research report on Friday, October 31st. Royal Bank Of Canada restated an “outperform” rating and issued a $75.00 price objective on shares of Dutch Bros in a report on Friday. Finally, UBS Group reaffirmed a “buy” rating on shares of Dutch Bros in a research note on Monday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $77.05.

Insider Activity at Dutch Bros

In other Dutch Bros news, major shareholder Dm Individual Aggregator, Llc sold 648,089 shares of the business’s stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $55.44, for a total transaction of $35,930,054.16. Following the completion of the transaction, the insider owned 9,817 shares in the company, valued at $544,254.48. The trade was a 98.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Chairman Travis Boersma sold 1,678,616 shares of the firm’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $55.44, for a total transaction of $93,062,471.04. Following the completion of the sale, the chairman owned 9,817 shares in the company, valued at $544,254.48. The trade was a 99.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 3,465,214 shares of company stock valued at $189,800,291 in the last quarter. 42.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Integrated Wealth Concepts LLC purchased a new stake in Dutch Bros in the first quarter valued at $318,000. Empowered Funds LLC increased its position in shares of Dutch Bros by 15.9% during the first quarter. Empowered Funds LLC now owns 33,843 shares of the company’s stock worth $2,089,000 after purchasing an additional 4,633 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Dutch Bros by 7.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 305,714 shares of the company’s stock valued at $18,875,000 after purchasing an additional 22,323 shares during the last quarter. US Bancorp DE boosted its position in shares of Dutch Bros by 76.6% in the 2nd quarter. US Bancorp DE now owns 15,458 shares of the company’s stock valued at $1,057,000 after purchasing an additional 6,703 shares during the period. Finally, IFP Advisors Inc boosted its position in shares of Dutch Bros by 22.8% in the 2nd quarter. IFP Advisors Inc now owns 3,710 shares of the company’s stock valued at $254,000 after purchasing an additional 688 shares during the period. 85.54% of the stock is owned by hedge funds and other institutional investors.

Dutch Bros Stock Up 5.0%

The stock has a market cap of $8.78 billion, a PE ratio of 83.41, a P/E/G ratio of 2.14 and a beta of 2.54. The business has a 50 day moving average of $60.05 and a 200-day moving average of $59.36. The company has a current ratio of 1.52, a quick ratio of 1.32 and a debt-to-equity ratio of 0.68.

About Dutch Bros

Dutch Bros Coffee, trading on the NYSE under the ticker BROS, is an American drive-through coffee chain known for its quick-service model and community-focused brand. Founded in 1992 by brothers Dane and Travis Boersma in Grants Pass, Oregon, the company began as a single coffee stand and has since expanded its footprint across numerous U.S. markets. Dutch Bros specializes in handcrafted espresso drinks, drip coffee, cold brew, energy drinks, smoothies, teas, and a variety of signature “Dutch Freeze” and “Dutch Frost” blended beverages.

The company operates a mix of company-owned and franchised locations, placing a strong emphasis on speed and customer engagement.