Dutch Bros Inc.

Results for our company-operated shops segment were as follows:

1 Reconciliation of GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures” in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Company-operated Shops Segment Performance

Company-operated Shops Revenue

The company-operated shops revenue increase was driven by $63.9 million from newly opened shops not yet in the comparable shop base and $21.3 million from a 7.8% increase in same shop sales within the comparable shop base.

The company-operated shops revenue increase was driven by $128.1 million from newly opened shops not yet in the comparable shop base and $35.5 million from a 7.2% increase in same shop sales within the comparable shop base.

Beverage, Food, and Packaging Costs

As a percentage of company-operated shops revenues, beverage, food and packaging costs decreased by 20 basis points. This was primarily due to a 60 basis point decrease for the impact of pricing on the comparable shop base, offset by an increase in ingredient costs. The increase in ingredient costs was driven by higher coffee costs and partially offset by favorable dairy pricing.

As a percentage of company-operated shops revenues, beverage, food and packaging costs decreased by 30 basis points. This was primarily due to a 70 basis point decrease for the impact of pricing on the comparable shop base, partially offset by a 50 basis point increase in ingredient costs.

Labor Costs

As a percentage of company-operated shops revenues, labor costs decreased by 60 basis points primarily due to the impact of pricing.

As a percentage of company-operated shops revenues, labor costs increased by 20 basis points. This was primarily due to 90 basis points from increased wages partially offset by a decrease of 80 basis points from the impact of pricing.

Occupancy and Other Costs

As a percentage of company-operated shops revenues, occupancy and other costs increased by 80 basis points and 30 basis points for the three and six months ended June 30, 2025, respectively. These increases were primarily due to the impact of occupancy rates from new shops.

Pre-opening Costs

The increase in pre-opening costs was primarily driven by increased travel for setup and training teams, and lease expense related to unopened shops, in the six months ended June 30, 2025 as compared to the same period in 2024.

Depreciation and Amortization

The increase in depreciation and amortization was primarily driven by the increase in the number of company-operated shops in the current period compared to the prior period.

Company-operated Shops Gross Profit and Contribution 1

1 Reconciliation of GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures” in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

The company-operated shops gross profit margin increased by 60 basis points and 30 basis points for the three and six months ended June 30, 2025, respectively. This was primarily driven by leverage from increased sales in the comparable shop base.