Dutch Bros Inc.
For the period ended Mar 31, 2026. Filed May 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 6, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Company-operated Shops Results
Results for our company-operated shops segment were as follows:
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| 2026 | 2025 | |||
| (dollars in thousands; unaudited) | $ | % | $ | % |
| Company-operated shops revenues | 429,057 | 100.0 | 326,421 | 100.0 |
| Beverage, food, and packaging costs | 112,322 | 26.2 | 81,379 | 25.0 |
| Labor costs | 112,305 | 26.2 | 89,439 | 27.4 |
| Occupancy and other costs | 76,785 | 17.8 | 53,927 | 16.5 |
| Pre-opening costs | 6,341 | 1.5 | 5,611 | 1.7 |
| Depreciation and amortization | 35,522 | 8.3 | 24,567 | 7.5 |
| Company-operated shops costs and expenses | 343,275 | 80.0 | 254,923 | 78.1 |
| Company-operated shops gross profit | 85,782 | 20.0 | 71,498 | 21.9 |
| Company-operated shops contribution | 121,304 | 28.3 | 96,065 | 29.4 |
Company-operated Shops Segment Performance
Company-operated Shops Revenue
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| (dollars in thousands; unaudited) · 2026 · 2025 · 2026 v. 2025 | ||||
| Company-operated shops revenue | $429,057 | $326,421 | $102,636 | 31.4% |
Company-operated shops revenue increased $70.3 million from newly opened shops not yet in the comparable shop base and $32.3 million from a 10.6% increase in same shop sales.
Beverage, Food, and Packaging Costs
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| (dollars in thousands; unaudited) · 2026 · 2025 · 2026 v. 2025 | ||||
| Beverage, food and packaging costs | $112,322 | $81,379 | $30,943 | 38.0% |
| As a percentage of company-operated shops revenues | 26.2% | 25.0% | N/A | 120 bps |
As a percentage of company-operated shops revenues, beverage, food and packaging costs increased by 120 basis points. This was primarily due to an increase in coffee costs and the costs associated with the expansion of our new food program, which have higher costs as a percentage of revenue compared to beverages.
Labor Costs
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| (dollars in thousands; unaudited) · 2026 · 2025 · 2026 v. 2025 | ||||
| Labor costs | $112,305 | $89,439 | $22,866 | 25.6% |
| As a percentage of company-operated shops revenues | 26.2% | 27.4% | N/A | (120) bps |
As a percentage of company-operated shops revenues, labor costs decreased by 120 basis points primarily due to sales leverage and the impact of pricing.
Occupancy and Other Costs
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| (dollars in thousands; unaudited) · 2026 · 2025 · 2026 v. 2025 | ||||
| Occupancy and other costs | $76,785 | $53,927 | $22,858 | 42.4% |
| As a percentage of company-operated shops revenues | 17.8% | 16.5% | N/A | 130 bps |
As a percentage of company-operated shops revenues, occupancy and other costs increased by 130 basis points. This increase was primarily due to higher rent on new shops as we shift more of our portfolio to build-to-suit leases and higher repair and maintenance costs.
Pre-opening Costs
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| (dollars in thousands; unaudited) · 2026 · 2025 · 2026 v. 2025 | ||||
| Pre-opening costs | $6,341 | $5,611 | $730 | 13.0% |
| As a percentage of company-operated shops revenues | 1.5% | 1.7% | N/A | (20) bps |
| New company-operated shops opened | 33 | 25 | 8 | 32.0% |
| Pre-opening costs per new company-operated shop | $192 | $224 | $(32) | (14.3)% |
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 current period as compared to the prior period.
Depreciation and Amortization
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| (dollars in thousands; unaudited) · 2026 · 2025 · 2026 v. 2025 | ||||
| Depreciation and amortization | $35,522 | $24,567 | $10,955 | 44.6% |
| As a percentage of company-operated shops revenues | 8.3% | 7.5% | N/A | 80 bps |
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 and an adjustment recorded in 2026 as a result of our evaluation of the useful lives of certain shop related assets previously placed into service.
Company-operated Shops Gross Profit and Contribution
The factors described above resulted in a gross profit margin decrease of 190 basis points for the three months ended March 31, 2026 compared to 2025.
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| (dollars in thousands; unaudited) · 2026 · 2025 · 2026 v. 2025 | ||||
| Company-operated shops gross profit | $85,782 | $71,498 | $14,284 | 20.0% |
| As a percentage of company-operated shops revenues | 20.0% | 21.9% | N/A | (190) bps |
| Company-operated shops contribution | $121,304 | $96,065 | $25,239 | 26.3% |
| As a percentage of company-operated shops revenues | 28.3% | 29.4% | N/A | (110) bps |
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