BROS

It has been about a month since the last earnings report for Dutch Bros (BROS). Shares have lost about 13.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Dutch Bros due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Dutch Bros Inc. before we dive into how investors and analysts have reacted as of late. Dutch Bros reported second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis. The quarter benefited from new shop growth, sustained comparable-shop momentum and transaction-driving initiatives. Systemwide same-shop sales rose 5.8% year over year, supported by a 1.7% increase in transactions. In the second quarter of 2026, Dutch Bros reported adjusted earnings per share of 33 cents, topping the Zacks Consensus Estimate of 29 cents by 13.8%. The figure increased 26.9% from 26 cents in the prior-year quarter. Quarterly revenues of $550.9 million surpassed the consensus mark of $524 million by 5.1%. The top line increased 32.5% year over year from $415.81 million, reflecting contributions from new shops and higher comparable sales. Company-operated shop revenues climbed 34% year over year to $510 million from $380.5 million. The increase reflected contributions from new locations and continued growth across comparable company-operated shops. Franchising and other revenues advanced to $40.8 million from $35.3 million in the prior-year quarter. Dutch Bros opened 48 system shops during the period, comprising 44 company-operated shops and four franchised locations, and ended the quarter with 1,225 system shops. Company-operated same-shop sales increased 8.3% year over year. The result included 3.4% transaction growth and a 4.9% rise in ticket, showing that higher customer visits and spending supported the sales increase. Systemwide same-shop sales advanced 5.8%, with ticket up 4.1%. Management cited the food rollout, maturation of newer shop vintages, brand marketing initiatives and customer segmentation within Dutch Rewards as key contributors to performance. Company-operated shop contribution increased 31.9% year over year to $155.97 million. The contribution margin was 30.6%, down from 31.1%, as higher coffee, food and occupancy costs offset part of the benefit from sales growth. Beverage, food and packaging costs increased 80 basis points to 26.1% of company-operated shop revenues. Labor costs improved 120 basis points to 25.4% on sales leverage, while occupancy and other costs increased 50 basis points to 16.3%. Adjusted EBITDA rose 27.8% to $113.71 million. Dutch Bros ended the quarter with $268.6 million in cash and cash equivalents, compared with $269.4 million at the end of 2025. Total liquidity was approximately $699 million, including $430.6 million of available borrowing capacity under its revolving credit facility. At June 30, 2026, $50.0 million was outstanding under the facility, with remaining borrowing capacity net of $19.4 million in letters of credit. Average capital expenditures per new shop were approximately $1.4 million. The company continued shifting toward build-to-suit leases and maintained its long-term target of deriving 60% of its shop portfolio from that development structure. Dutch Bros agreed to acquire the real estate and related site assets of up to 65 Salad and Go locations across Arizona, Nevada, Oklahoma and Texas. The transaction is expected to close in the third quarter of 2026, subject to approvals and customary conditions. The company expects to convert the acquired drive-thru locations into Dutch Bros shops in 2027. Management believes the sites will deepen density in markets where the brand already has awareness and support continued footprint growth. BROS’ 2026 outlook excludes any impact from the transaction. Following the second-quarter performance and the Phoenix franchise acquisition, management raised its 2026 revenue outlook to $2.10-$2.13 billion from $2.05-$2.08 billion. Systemwide same-shop sales growth is now expected between 5% and 6%, compared with the prior 4%-6% range. Adjusted EBITDA is projected between $385 million and $390 million, up from $370-$380 million. Capital expenditures are expected to be $350-$370 million, while Dutch Bros continues to forecast at least 185 system shop openings in 2026. In the past month, investors have witnessed a downward trend in fresh estimates. At this time, Dutch Bros has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Dutch Bros has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Dutch Bros belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Chipotle Mexican Grill (CMG), has gained 11.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Chipotle reported revenues of $3.35 billion in the last reported quarter, representing a year-over-year change of +9.3%. EPS of $0.33 for the same period compares with $0.33 a year ago. For the current quarter, Chipotle is expected to post earnings of $0.29 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Chipotle. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dutch Bros Inc. (BROS) : Free Stock Analysis Report Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Starbucks Corporation SBUX enters the final quarter of fiscal 2026 with stronger comparable sales and earnings trends. Global comparable sales rose 7.9% in the fiscal third quarter, while net revenues reached $9.3 billion. EPS increased 70% year over year to 85 cents. The improvement was supported by higher customer traffic and spending, giving the company a stronger base for earnings growth.The U.S. business provides a key base for this growth. Comparable sales increased 7.9%, driven by a 4.2% rise in transactions and a 3.6% improvement in average ticket. Food attach reached a quarterly record across U.S. company-operated stores, while delivery and product modifications supported ticket growth. The balanced contribution from traffic and ticket growth gives the company a stronger foundation for earnings as comparable sales improve.Starbucks’ stronger comparable sales also supported margin expansion. Consolidated operating margin expanded 430 basis points to 14.4%, while North America margin increased 280 basis points year over year. Sales leverage, operational improvements and cost savings helped offset investments in Green Apron Service and menu innovation. The company also reduced G&A expenses by about 20%, with the decline supported by cost savings, the China business deconsolidation and the comparison with higher leadership-related expenses in fiscal 2025.Starbucks raised its fiscal 2026 expectations following the stronger performance. U.S. comparable sales are projected to grow a little more than 6%, while global comparable sales are expected to approach 6%. Consolidated operating margin guidance was raised to above 11%, and EPS guidance increased to $2.55-$2.65. Starbucks also expects coffee price pressure to ease in the fiscal fourth quarter, which could reduce a previous drag on margins.The earnings trajectory will depend on whether Starbucks can maintain comparable sales growth while preserving the margin gains achieved in the third quarter. The company remains on track with its $2 billion cost-savings plan through fiscal 2028. Sales leverage and cost savings could support earnings as comparable sales grow. However, the company expects continued variability in the broader consumer environment, making traffic growth an important factor for fiscal fourth-quarter performance. Shares of Starbucks have gained 18.5% in the past year against the industry’s 7.3% decline. In the same time frame, other industry players like Dutch Bros Inc. BROS and McDonald's Corporation MCD have declined 23% and 14.7%, respectively. Image Source: Zacks Investment Research From a valuation standpoint, SBUX trades at a forward price-to-sales (P/S) multiple of 3.06, below the industry’s average of 3.09. Conversely, industry players, such as Dutch Bros and McDonald's, have P/S multiples of 3.43 and 6.5, respectively. Image Source: Zacks Investment Research The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share has increased in the past 30 days. Image Source: Zacks Investment Research The company is likely to report strong earnings, with projections indicating a 21.1% rise in fiscal 2026. Conversely, industry players like McDonald's are likely to witness an increase of 5.6%, year over year, in 2026 earnings. Meanwhile, Dutch Bros’ 2026 earnings are likely to witness a rise of 27.6% year over year.SBUX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Starbucks Corporation (SBUX) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report Dutch Bros Inc. (BROS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dutch Bros’ second quarter results were met with a negative market reaction, despite strong revenue growth and continued expansion. Management attributed this performance to robust transaction growth, accelerated shop openings, and the rollout of new food offerings across a majority of company-operated locations. CEO Christine Barone highlighted that the introduction of Mist, a plant-powered energy drink, and ongoing digital engagement initiatives through Dutch Rewards helped drive customer frequency and broaden daypart participation. The company also noted higher operating costs due to increased coffee prices and real estate expenses. Is now the time to buy BROS? Find out in our full research report (it’s free). Revenue: $550.9 million vs analyst estimates of $526.3 million (32.5% year-on-year growth, 4.7% beat) Adjusted EPS: $0.33 vs analyst estimates of $0.30 (11.2% beat) Adjusted EBITDA: $113.7 million vs analyst estimates of $106.1 million (20.6% margin, 7.1% beat) The company lifted its revenue guidance for the full year to $2.12 billion at the midpoint from $2.07 billion, a 2.4% increase EBITDA guidance for the full year is $387.5 million at the midpoint, above analyst estimates of $377.5 million Operating Margin: 12.8%, in line with the same quarter last year Locations: 1,225 at quarter end, up from 1,043 in the same quarter last year Same-Store Sales rose 5.8% year on year, in line with the same quarter last year Market Capitalization: $6.84 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Dennis Geiger (UBS) asked about the sustainability of same-store sales growth given the guidance deceleration and macro environment. CFO Joshua Guenser explained that the moderation reflects tougher transaction comparisons, roll-off of pricing, and the food rollout lap, but expressed confidence in ongoing initiatives and market position. Andrew Charles (TD Cowen) questioned the potential impact of competition and fuel prices on traffic trends. CEO Christine Barone responded that the company’s differentiated offerings and customer service continue to resonate, and recent initiatives are performing well despite external pressures. Jeffrey Farmer (Gordon Haskett) probed the relationship between limited-time offer (LTO) velocity and traffic, specifically referencing the Mist launch. Barone clarified that platform innovation like Mist not only drives trial but also increases energy drink mix and repeat occasions, supporting sustained growth. Sara Senatore (Bank of America) asked about the widening gap between company-operated and franchisee performance, especially concerning the food program rollout. Guenser attributed this to rapid food adoption and newer shop vintages benefiting company stores, noting franchise food rollout is scheduled to accelerate next quarter. Andrew North (Baird) inquired about plans to raise awareness of the food platform and potential marketing investments. Barone said initial customer adoption is strong and future efforts may focus on seasonal offerings and expanded food SKUs to build awareness and drive incremental visits. Looking ahead, the StockStory team will monitor (1) the effectiveness of the food program rollout in franchise locations, (2) the impact of further menu innovation and limited-time offerings on customer frequency, and (3) the pace and productivity of new shop openings—especially in new markets and recently acquired sites. The ability to manage margin pressures amid continued expansion will also be a key signpost. Dutch Bros currently trades at $49.85, down from $65.67 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026, at 5 p.m. ET Chief Executive Officer and President - Christine Barone Chief Financial Officer - Joshua Guenser Director, Investor Relations - Neil Patel Operator: Thank you for standing by and welcome to the Dutch Bros Inc. Second Quarter 26 Earnings Conference Call and Webcast. This conference call and webcast is being recorded today, 08/05/2026 at 5PM Eastern Time and will be available for replay shortly after it has concluded. Following the company's presentation, we will open the lines for questions and instructions to queue up will be provided at that time. I would now like to turn the call over to Neil Patel Dutch Bros. Director, Investor Relations. Please go ahead. Neil Patel: Good afternoon. I am joined by Christine Barone, CEO and president and Joshua Guenser, CFO. We issued our earnings press release for the quarter ended 06/30/2026 after the market closed today. The earnings press release along with a supplemental information deck have been posted to our Investor Relations website at investors.dutchpros.com. Please be aware that all statements in our prepared remarks and in response to your questions other than those of historical fact are forward looking statements and are subject to risks, uncertainties and assumptions that may cause actual results to differ materially. They are qualified by the cautionary statements in our earnings press release and the risk factors in our latest SEC filings. Including our most recent annual report on Form 10 ks And quarterly report on Form 10 Q. We assume no obligation to update any forward looking statements. We will also reference non GAAP financial measures on today's call. As a reminder, non GAAP measures are neither substitutes for nor superior to measures that are prepared under GAAP. Please review the reconciliation of non GAAP measures to compare GAAP results in our earnings press release. During the question and answer portion of today's call, please limit yourself to 1 question and avoid multipart questions that we can accommodate as many participants as possible. With that, I would like to turn the call over to Christine. Christine Barone: Thank you, Neil, and good afternoon, everyone. Dutch Bros continues to be powered by a differentiated people led culture expanding customer occasions, and a real estate development engine that is unlocking new growth opportunities across the country. The success of our strategy was evident in Q2 as we delivered our 8th consecutive quarter of transaction growth. And again delivered strong comp sales that have compounded year over year. Durable growth built on an already strong base. In fact, Q2 marked our 13th straight quarter of positive comp sales, This performance is the product of years of foundational investment. Not 1 lever, but a full playbook we have built deliberately, and are executing with intention. This gives us incredible confidence in our ability to continue growing the business for the long term. Based on our performance so far this year, and the recent acquisition of 1 of our Phoenix franchisees, we are raising our full year guidance. Turning to our Q2 results, Total revenues increased an outstanding 32%. Accompanied by strong profitability with adjusted EBITDA up 28%. Our distinctive value proposition continued to resonate in Q2. And we saw system wide transaction growth driven by the strength of our brand and our endlessly customizable offerings delivered with speed, quality, and service. Development momentum remained exceptionally strong during the quarter, with 48 system shop openings. Reinforcing our confidence in our pipeline and the path ahead to reaching 4 thousand shops in 2029. Our transaction driving initiatives, including the rollout of food, and category leading innovation are working. Serving as an important proof point in our ability to continue growing transactions while scaling nationally. System wide AUVs continued their upward momentum in Q2. And new shop productivity was exceptional. An important validation of Dutch Bros long term growth opportunity and the continued expansion of the beverage category. Our Q2 results are a direct reflection of the investments we have made across the business over the past several years. Our foundation remains exceptionally strong, we are building on that momentum. As we look ahead, the power of our brand, industry leading innovation, and our ability to grow customer occasions give us tremendous confidence in the long term trajectory of Dutch Bros. But none of it would be possible without our team who bring the Dutch Bros experience to life every day. At Dutch Bros, everything starts with our people. Our people led culture remains the foundation of our success, and the driving force behind how we grow. Our broistas the heartbeat of our brand, pour into their communities, make customers feel seen, and create meaningful moments that keep customers coming back. These genuine customer connections remain the strongest differentiator of the Dutch Bros experience. Customers come to us for more than a drink, They come for the moment at the window that makes their day a little better. That connection has been the hallmark of our brand since our very first stand. And because we grow our leaders from behind the window, that special feeling of connection only gets stronger as we grow. It is the reason we continue to be at the top of the industry in customer ratings for pleasant and friendly service. The exceptional people across our brand allow us to execute consistently, scale into new markets, and deliver the unmatched Dutch Bros energy our customers know and love. Today, we have more than 525 operator candidates in our pipeline with an average tenure of nearly 8 years. A leadership bench that gives us tremendous confidence in our ability to continue growing in a unique way only Dutch Bros can. At the end of June, I spent time with more than 2,000 of our field leaders at A Better World. Our immersive and engaging field event focused on developing the next generation of Dutch Bros leaders. Being surrounded by the people who bring our culture to life every day reinforced what makes Dutch Bros so special. Their passion for growing others, serving with kindness, and living our mission gives me tremendous confidence that our people will continue to be our greatest differentiator as we grow. The road to 4 thousand shops in 2029 remains very clear. Supported by our robust development pipeline. As we deepen our presence in existing markets and thoughtfully expand into new ones, each new shop opening reinforces the power of the Dutch Bros brand from coast to coast. Importantly, density continues to be a competitive advantage. We believe density matters and continue to view it as a strategic asset of both our expansion model and growing brand awareness. While we continue this densification strategy, we are also entering new markets as we expand our footprint across the country. And new market performance continues to give us even more confidence in our growth path ahead. 1 of the best examples is in the Chicago market. Last quarter, we provided an update on our entry into the Greater Chicago area. Highlighting that our first shop was pacing to a volume of approximately $4 million. During Q2, we expanded our footprint in the greater Chicagoland area with our Melrose Park shop, which is pacing to a volume of approximately $7 million. The response from the community has been incredible. Opening day demand exceeded our expectations and set a new company record. Further underscoring the portability of the Dutch Bros brand, the early results affirm our belief that the greater Chicagoland area represents a meaningful long term growth opportunity. Across several newer markets, we are also seeing incredible traction. From Atlanta to Charlotte to Tampa, we are seeing many new markets annualizing meaningfully above expectations showcasing firsthand how well the Dutch Bros brand travels and resonates across diverse geographies. We are also excited to have entered our 26 state Mississippi, in July. We recently completed the Phoenix East Valley acquisition, following the retirement of our franchise partner who had been with Dutch Bros for nearly 20 years. Looking ahead, our development momentum remains very strong. We are opening shops ahead of schedule, Our pipeline is rapidly growing, and we continue to see attractive conversion opportunities. Both from emerging growth concepts and legacy beverage and drive through players. Whether we are entering new markets or building density in existing ones, the broad appeal of the Dutch Bros brand and the significant runway ahead become even more evident with each shop we open. Growth is not just about expanding our footprint. it is also about creating more reasons for customers to choose Dutch Bros throughout the day. In Q2, innovation across our menu and our relentless focus on the customer experience helped strengthen customer routines, drive frequency, and deepen engagement with the brand. Let me start with food. Food continues to be 1 of our most important sales drivers and a key component of our morning daypart strategy. By the end of Q2, we completed the rollout of our new food program across approximately 750 system shops. Ahead of schedule. Throughout the rollout, the response from customers in Broistas has exceeded expectations. We are seeing customers incorporate Dutch Bros into more morning occasions, creating additional opportunities to engage with the brand and strengthening our position within customers' daily routine. Beyond food, innovation across our beverage menu and merch drop kept customers engaged and excited to visit Dutch Bros in the quarter. In May, we introduced Myst Energy Refreshers, a new category of plant powered energy drinks to complement our proprietary Rebel platform. Further strengthening our leadership position in the energy space. Mist allows us to broaden our occasions and reach new customers. While bringing meaningful innovation to the beverage industry. At launch, we drove trial of Mist through our Fill-a-Tray event. Making it easy for customers to mix and match and discover this new platform. Mist headlined our Q2 LTO lineup. Alongside the return of fan favorites, Strawberry Colada, Dulce de Leche. And drove outstanding year over year growth in LTO unit velocity. Since the launch of Mist, we have increased our overall energy mix and driven retention rates ahead of recent LTO benchmarks. Given the overwhelmingly positive customer response, we have made the decision to give Mist a permanent home on the menu alongside our Rebel program. Together, Mist and Rebel reinforce our innovation in energy and create a sustainable growth engine for the business. Beyond beverages, our merch drops continue to generate excitement and engagement. Giving customers another reason to make a special trip to Dutch Bros while becoming truly signature events for the brand. We saw another quarter of meaningful sales lift with standout drops like the state sticker and frog charm delivering the strongest merchant sticker drops of the year. Our digital ecosystem also continues to deepen customer engagement, We ended Q2 with over 73% of transactions flowing through Dutch rewards. Reflecting continued customer adoption and engagement. Rewards penetration has been on a consistent climb over the last 3 years, and we have grown our registered members per shop by over 50%. In Q2, Dutch rewards also delivered its strongest contribution to comp since the start of our customer segmentation journey. Our ongoing investment in segmentation and personalization is enabling more relevant customer experiences and remains an important lever to drive long term transaction growth. We are also seeing continued adoption of order ahead, which reached approximately 16% of the total transaction mix. Improving convenience, and making it even easier for customers to engage with us. Our CPG business continues to expand the reach of our brand introducing customers to Dutch Bros and keeping the brand top of mind between visits to our shops. In Q2, the Dutch Bros CPG portfolio continued to show strong customer demand, generating above category average velocity in all formats in which we compete. As we scale the brand, maintaining strong operational discipline remains a key priority. In Q2, we launched our vibe check scorecard. Giving leaders greater visibility into shop level performance and enabling our field teams to make more informed operational decisions. As we continue to grow, tools like these help our teams maintain consistency and operational discipline. We successfully executed several high demand events during the quarter. Including major sticker, merch drop, and Fill-a-Tray events. Through improved staffing and operational planning, our teams delivered a consistent customer experience even during these periods of elevated demand. Finally, we continue to see improvement in throughput. With further progress already underway. We are focused on shop layout, equipment optimization, and operational processes that help our brewery to serve customers with speed while maintaining the quality and service our customers expect. In closing, our confidence in the opportunity ahead has never been greater. And it is clear that our strategy is working. Our people led culture continues to scale alongside the business and remains the defining differentiator of the Dutch Bros brand. Backed by our deep leadership pipeline and consistent execution, we believe what sets us apart today will continue to be a key reason why customers choose Dutch Bros and keep coming back. Our strong performance in new markets and continued momentum across our development pipeline reinforces our confidence in the path to 2,029 SHOPs in 2029. Our sales driving initiatives are delivering exceptional results. Exceeding our expectations and delighting customers. Beverage innovation, food, merch drops, and digital advancements. This is our playbook in action. All working together. And 8 consecutive quarters of transaction growth is the clearest proof it is paying off. Looking ahead, we remain confident in our ability to execute against the significant opportunity ahead of us. We continue to see significant runway for growth, supported by the strength of our brand, the passion of our people, and our ability to continue creating more occasions for customers. Together, these advantages position Dutch Bros to continue taking share. And further solidify our position in the beverage category. With that, I will pass it to Joshua. Joshua Guenser: Thanks, Christine. I will start with a recap of our second quarter performance. And then share our outlook for the remainder of 2026. Our second quarter results were above our expectations. With upside driven by outstanding execution of our marketing initiatives and the continued traction in our idiosyncratic sales drivers. The dedication of our people, and the strong conviction we have in our brand solidify my confidence in the balance of the year and our ability to drive long term growth. For the second quarter, total revenues were $551 million growing 32% over the second quarter of last year. Company operated same shop sales growth in Q2 was an impressive 8.3%, with transaction growth of 3.4%. System same shop sales growth in Q2 was 5.8% with transaction growth of 1.7%. The strength of our 2 year transaction stack highlights the effectiveness of the layers of sales driving initiatives we have executed over recent years. And their ability to generate strong customer demand even in an environment of lower consumer sentiment. Performance during the quarter from the continued rollout of our new food program, the continued maturation of newer shop vintages, strength in brand marketing initiatives, and the momentum in customer segmentation within Dutch rewards. And with our system same shop sales performance in Q2, and performance quarter to date in Q3, we are updating our guidance for the full year to 5% to 6%. Now let me be clear. Given our performance to date and our expectations for the full year, we are trending towards the midpoint of that 5% to 6% range. This guidance reflects transaction comparisons continuing to step up through the remainder of the year, and the lap of the food rollout we began in Q3 of last year which primarily impacts net ticket. Our updated full year comp guidance contemplates system same shop sales growth of approximately 4% to 5% in Q3. Reflecting stronger transaction comparisons and the impact of effective pricing stepping down sequentially. As a reminder, we rolled off another point of price in early July. And with pricing taken during the year, our ticket will include less than a point of effective pricing in the back half of the year. This reflects our disciplined approach to pricing while preserving our strong value proposition. I am very proud of the momentum we have generated across our business as the number of new shops we opened quarter after quarter continued to reach record volumes. The strength of our brand, the effectiveness of our sales drivers, and the tactical execution of our playbook continue to drive system wide AUVs higher. New shop productivity remained strong in Q2. Keeping pace with this continued upward trajectory system wide AUVs. And we continue to build momentum across our real estate development pipeline. During the second quarter, we opened 48 new shops, continuing our strong pace of development growth. We now have approximately 90% of our pipeline needed to achieve 4 thousand shops in 2029. The depth of this pipeline coupled with the outstanding execution of our development team, reinforces our confidence in our ability to continue capturing the significant amount of white space ahead of us. Last week, we completed the acquisition of the franchise rights and assets of 31 locations in the Phoenix market. Including 1 location currently under development. Total purchase consideration was $63.5 million. For the remainder of 2026, we expect this to drive net incremental total revenue of approximately $25 million inclusive of an approximately $5 million reduction in franchise and other revenue. We also expect incremental adjusted EBITDA of approximately $5 million for the balance of the year. Which is net of transition related costs. Earlier this week, we entered into an agreement to acquire the real estate and related site assets of up to 65 Salad and Go locations Arizona, Nevada, Oklahoma, and Texas. An opportunity that we believe enhances our development pipeline and deepens our scale in these markets. We anticipate closing this acquisition this quarter subject to applicable approvals and other customary closing conditions. With conversions expected in 2027. We are excited to expand our company operated presence in these important growth where we continue to see significant white space opportunity. Shifting to our company operated shops. Performance in Q2 was exceptional. With revenue totaling $510 million. An increase of 34% or $130 million compared to the second quarter of last year. Company operated shop contribution was $156 million representing a year over year increase of 32%. Company operated shop contribution margin was incredibly strong, approximately 31%. Beverage, food, and packaging costs were 26.1% of company operated shop revenue. Which is 80 basis points higher year over year primarily driven by higher coffee costs, and costs associated with the continued rollout of our new food program. We continue to expect an impact from higher coffee costs in the back half of the year. The updated full year 2026 guidance contemplates approximately 60 basis points of total COGS pressure, which includes the impact from costs associated with the new food program. Labor costs were 25.4% of company operated shop revenue. Which is 120 basis points favorable year over year primarily due to sales leverage. Occupancy and other costs were 16.3% of company operated shop revenue. Which is 50 basis points higher year over year primarily due to higher rent on new shops as we shift more of our portfolio to build to suit leases. We continue to expect to shift towards build to suit leases will drive higher occupancy costs as a percentage of revenue in 2026. We expect this impact to be approximately 50 basis points for 2026 consistent with what we saw in Q2. Preopening expenses were 1% of company operated shop revenue. Which is 40 basis points higher year over year primarily driven by increased number of shop openings. Moving down the P and L. Adjusted SG and A in Q2 was $72 million or 13.2% of total revenue. While continuing to make investments in our people and infrastructure, we were able to drive 90 basis points of leverage on adjusted SG and A. Our updated 2026 guidance now contemplates a approximately 90 basis points of leverage on adjusted SG and A for the full year. Our full year guidance contemplates Q3 adjusted SG and A of $73 million to $74 million In the quarter, adjusted EBITDA was $114 million an increase of 28% over Q2 of last year. And we delivered $0.33 of adjusted EPS, up from $0.26 in the second quarter of last year. Let me now provide an update on our liquidity and CapEx. As of June 30, we had approximately $699 million in liquidity. including $269 million in cash and cash equivalents, and the balance in our undrawn revolver. In Q2, our average CapEx per shop was approximately $1.4 million consistent with Q2 of last year. We remain on track toward our long term goal of 60% build to suit lease mix. And we continue to increase the number of high quality sites we are adding to our pipeline. As other concepts continue to rightsize their drive through fleet, they are creating even more opportunities for us to expand into high quality locations with exceptional long term economics. Turning to our guidance. Are approaching the back half of the year from a position of strength. We have a highly focused plan, long term visibility into our key growth initiatives, and a very clear objective. To continue converting the significant white space ahead of us into durable growth. Given the performance we have seen thus far, and the impact of the Phoenix franchise acquisition, we are raising our 2026 guidance in the following areas. Total revenues are now projected to be between $2.1 billion and $2.13 billion representing 28% to 30% growth year over year. System same shop sales growth is now estimated to be in the range of 5% to 6%, with us trending towards the midpoint of that range. Adjusted EBITDA is now estimated to be in the range $385 million to $390 million The midpoint of this range contemplates approximately 20 basis points of year over year net adjusted EBITDA margin pressure. Reflecting the impact of higher coffee costs, and increased occupancy costs partially offset by leverage on adjusted SG and A. Capital expenditures are now expected to be in the range $350 million to $370 million We remain very confident in opening at least 150 system shops in 2026. I am very proud of the results our team delivered in Q2. Strong operational execution, the continued focus on establishing the everyday routine for our customers, an incredibly strong 4 wall economics, give me even greater conviction that we are set up for long term success. Thank you, everyone. We will now take your questions. Operator, please open the lines. Operator: Thank you. We will now be conducting a question-and-answer session. Please limit yourself to 1 question. Your handset before pressing the star keys. And our first question will come from Dennis Geiger with UBS. Dennis Geiger: Joshua, you gave some really help helpful color on the rest of the year guidance and including as it relates to the same store sales target. Wanted to know if you could get into that a little bit more as far how you are thinking about the back half outlook. Any other puts and takes as it relates to some of the key initiatives that you have got in place and how you are thinking about contribution as we move through the back half of the year as well as just kind of anything on broader macro backdrop competition, anything else that might impact the back half of the year comps? Joshua Guenser: Yes, Dennis. Thanks for the question. So as we think about our guide for the full year of the midpoint of the 5% to 6% range, that really does reflect the continued step up in transaction comparison. So we see step up in Q3. And Q4. We also are rolling off net pricing as we head into Q3, so we will see that impact our ticket. And then we begin to roll over actually the start of the rollout of our food program that we started in of last year. And then more meaningfully in Q4. So all those factors lead us to that 5% to 6% range for the full year and 4 to 5 points comp for Q3. Christine Barone: Yeah. And as we look at the broader macro environment, we are feeling really good about how we are positioned. We think that we continue to be positioned to really outcompete the rest of the industry and outperform with mobile order, with Dutch rewards, with the food program, and all of the different initiatives that we have added together are just really performing. Our customers are loving them and our Broistas are serving them with exceptional service. Operator: And our next question will come from Andrew Charles with TD Cowen. Andrew Charles: Great. Thank you. Just a little on the guidance for 4-5%. It implies a deceleration from the strong 2Q results on both the 2 year basis as well as a seasonal basis. And I know you caught out rolling off some price, but are there other dynamics to think about considering, you know, perhaps the implied deceleration? In particular, are you seeing any headwinds from the surges of gas prices? Obviously, Starbucks had a big launch this month with blended energy as well. Just have the dynamics that we should be thinking about as well here. Joshua Guenser: Yeah. Andrew, thanks for the question. I would really point you towards the primary driver being that transaction lapse starting to step up here and then what we are rolling off both in terms of pricing and the rollover of, the start of our food program. So we do feel very good about the position that we are in as we head into Q3 and for the balance of the year and how things are shaping up for us. Operator: We will go next to Jeffrey Farmer with Gordon Haskett. Jeffrey Farmer: Thanks. Over the last couple of quarters, you guys pointed out some pretty big increases in your LTO unit velocity. So just looking for a little bit more color there. And then more importantly, what is the relationship between increased LTO velocity and your traffic and same store sales numbers? Thank you. Christine Barone: Thanks for the question. So we continue to be really pleased with how our LTOs are performing. When you look at Q2, I would highlight the launch of Mist. This is an incredibly important-- we are the leader, the category creator in customized energy. And having that full platform, including Mist, really just adds to what our customers can choose across that. We actually saw an incremental increase in energy as a total percent of our sales as we looked over that quarter. So really excited to see how that is performing. We did launch that as an LTE LTO, and with that strong performance, have decided to keep that on the menu. As we have talked over the last couple of quarters and look at our innovation, we really look at innovation as platform innovation and then some of those LTOs, those new flavors that just drive excitement across our business. And this quarter we were really focused on that platform innovation with launching Mist. You know, the other thing we saw too is as we look at our LTOs, we look each year at what is performing really well and saw a continued really great performance out of strawberry colada. So to see both Mist performing and our strawberry colada along with very strong performance out of Dulce de Leche for that second year as well. Operator: Moving on to Sara Senatore with Bank of America. Sara Senatore: Oh, thank you. I wanted to ask about the franchisee comps perhaps. It looks like the gap is widening, although certainly, I think the 2 year gap maybe is more stable. I guess the reason I ask is twofold. 1, trying to distinguish kind of how much of your strength in the company system was kind of the wind at your back from a strong segment versus I think you tend to do more preopening. You tend to do, like, more local marketing. So just as I think about your underlying drivers, sort of feels like maybe franchise is a control group. And then the other piece is I know you bought in a franchise system. I guess is there an opportunity to maybe you know, increase or accelerate comps from that business as well? Thank you. Joshua Guenser: Yes, Sara. I will I will I will just talk about the broader spread to start with. You know, as we shared in the past, the 1 of the biggest drivers of the spread between company franchise is really that we see strong comp tailwinds coming from the newer vintages of shops. And our growth is more heavily weighted towards the company operated side. So that just disproportionately benefits our company operated system more. I would say adding to that, as we have rolled out food, we completed the rollout of food into our company operated system during the quarter. We will start rolling that out into the franchise system starting next quarter. So certainly, that helped Create some more of the spread, especially on the ticket side as we look at Q2. Christine Barone: And then just as a reminder about 350 of our shops will not be able to have the hot food program. And that really is disproportionately in the franchise shops. The franchise shops that we have been testing with, have started to roll out food, and those that have all of the new bakery are seeing great results with it. Operator: We will go next to Andrew North with Baird. Andrew North: Great. I had a follow-up on the food platforms, so you teed it up well. I was hoping you could expand a bit on your opportunity to raise awareness of the offering. I think, as you mentioned, I mean, food is rolled out to majority of the company operated locations now to date. I was wondering if you were seeing sales mix continue to build as awareness has naturally grown and maybe how you are thinking about putting marketing dollars if that is a consideration behind food to drive year 2 of growth in that platform? Thanks. Christine Barone: Yeah. So, if we look at the food platform, our teams are really excited about the platform. So we actually see really, from the very beginning of launch of food that we see that pop up in food attach very, very quickly within our shops. And as we look at what we are trying to do with food, really, the first thing that we are trying to do is we heard from our customers loud and clear that, hey. I love Dutch Bros the most, but some days I go to another place because I want a breakfast sandwich or something like that in the morning. And so it is really important for us to add this for our customers, and we are seeing that attached you know, right away as we roll out the program. So we are very focused right now on executing the program really well. We are really pleased with the lift that we are seeing, As we look at the long term opportunity, I think not only do we have an opportunity to grow awareness of the program, but we also now have a very important food capability as part of our toolkit. And so as we look ahead, I think there are other platforms we can look at that might still be missing, within our offering. We only have 9 SKUs right now, within our shops. I think food can also play a nice role in seasonal offerings to help drive that awareness and that traffic. And as we roll out into new markets, I think another thing that is neat to see is customers really expect us to have that broader food offering. And so I think are very pleased when they come to our shop. So some of those new shops that we spoke about are seeing really great success, with food as well. Operator: And our next question will come from John Ivankoe with JPMorgan. Analyst: Good evening, guys. Can you help us understand how the new store product has been steadily ticking higher I mean, look, what is being done differently, especially as many stores are not necessarily been opening in the newer markets? And I have a follow-up. Christine Barone: Yeah. So if we look at our new shop performance, we continue to be incredibly pleased. As you know, we have been on a journey in really developing our real estate capabilities. So starting with market planning, you know, understanding how each store that we open is going to perform not only when it opens, but also as we fill out that whole market. Then looking at how we do our marketing within a new market, how we think about what really works, what helps to drive customers in. We have been on a march to build brand awareness as we go into new markets And I think as you look across all of those things, it is clearly working and we are opening great new shops as we continue to roll out in the country. I think 1 of the big highlights that we had in this quarter was opening in Chicago, our second shop there. I think to set an opening day record when we are at 1.2 thousand+ shops in a new market, just really speaks to the incredible strength of the brand and all of the awesome work that our teams are doing. Operator: We will go next to Nerses Setyan with Mizuho Securities. Nerses Setyan: Hi, thank you. Just in terms of the guidance for second half, any way to kind of break out company owned versus franchise, you know, given the expanding gap here? That would be very helpful. And aside from, you know, the food rollout, being delayed at the franchise stores. Are any of the other initiatives that are taking place in company owned stores not taking place within the franchise stores. Joshua Guenser: Yeah, Nick. So we do not provide guidance on the components of company versus franchise. Certainly, as we think about the some of the drivers for that spread there, you expect there to remain a spread as we continue to our shop growth cadence on the company side is certainly outpacing the franchise side. But that is about as much detail as we would give on guidance as it relates to the spread between the 2. Christine Barone: And then our food rollout really is ahead of schedule. I think as we have continued to see how our teams have embraced the food rollout, we always expected to actually roll out the company operated shops first. And for our franchisees to get to see that great performance and then adopt that program. Operator: We will go next to Sharon Zackfia with William Blair. Sharon Zackfia: Hi. Thanks for taking the question. Sorry. I am losing my voice. Can you talk about what you are seeing with Mist in terms of the demographic and the dayparts that might differ from what you see with Rebel? Christine Barone: Yeah. So as we look at Mist we really are seeing that afternoon daypart strength continue. But we also do see Mist occasions in the morning as well. And I do think that it is a lighter customizable caffeine that is that is in the Mist product. it is plant powered. And it provides that really refreshing platform that our customers love. As far as demographics go, again, it looks fairly similar, I think, to what we are seeing, from Rebel as well. But it is incredibly early days still for Mist. We think this platform just has a long way to go. And I think that, you know, as this energy market to evolve, we would expect that you would continue to see more of those occasions come into the morning as well. And I think that it is becoming something that our customers are really drinking throughout the day. Operator: Moving on to Gregory Francfort with Guggenheim Partners. Gregory Francfort: Hey. Thanks for the question. I just I just wanted to ask about the thought behind the Salad and Go lease acquisition. I mean, I think these are a thousand square feet, so it is pretty comparable to the size of a Dutch Bros. But I think Arizona and Nevada might be 2 of your 3 or 4 most penetrated states, and you kind of have been growing mid single digit unit growth in those markets. Just like is this to kind of turbocharge? Is there a lot of overlap with your stores? Just anything on the thought process there. Thanks. Joshua Guenser: Yeah, Gregory. So, you know, we really look at this as we shared in the past even with something like Clutch. We look at this as a great opportunity for us to get a hold of some fantastic real estate in markets where we see a lot of potential to continue growing. So while you are right, we have several shops here in Arizona and Nevada, we still see a significant amount of white space ahead and availability for us to be able to go after creating more of that daily routine and a daily occasion with customers. So we see this as a nice addition to the overall portfolio. To your point, the real the sites themselves are right around our size. Shop. So it should lead to easier conversion to a Dutch Bros. Operator: Moving next to John Tower with Citigroup. Jon Tower: Great. Thanks for taking the question. Maybe quick clarification on the question. On the clarification front, just want to make sure that the bump in CapEx that you guys had for the year guidance that includes the acquisition of the franchise market in Arizona, 1. And then the question is, on the rewards program. You know, I think Christine, you had mentioned that, it delivered its strongest contribution to comp since the start of the customer segmentation journey. So can you just speak to what exactly contributed to that? Is it something that you are doing explicitly in the program that drew customers back? Was it products in the period? Was it, you know, exclusive merch that maybe they had access to? Just curious what moved the needle there. Joshua Guenser: Yeah. I will start with the CapEx question quickly. That does-- the increase does-- the franchisee acquisition, does not include the announcement around Salad and Go. Christine Barone: Yeah. And then on the rewards program, we have really been on a journey, and so a lot of this is actually us taking our data and being able to segment it in new ways and then be able to provide very unique offers, to different customer segments that really match with what we are seeing from their behavior patterns. So when we see a behavior pattern trying to get someone into that next layer of frequency, trying to get them into that next drink, trying to make them aware of other products that we have, things like that. So it actually really is an increase in our sophistication in data and the way that we are using it within our rewards program. So it is a new capability that we have developed over time. We are also adding different ways that we can encourage our customers to try new things, so things like streaks in the program, So we are actually building out new technological capabilities as well along with all of that data segmentation that we are working through. Operator: And moving next to Jacob Aiken-Phillips with Melius Research. Jacob Aiken-Phillips: Good afternoon, guys. Thanks so much for taking our question. So between the 150 planned openings this year, acquired franchise shops, the Salad and Go conversions, You know, I was just curious as to how you are planning on segment sequencing these projects to ensure that the operator and MOB pipeline is not stretched. Is people capacity permitting or construction now the primary constraint? Thanks. Christine Barone: Yeah. So as we look at our, openings, so 1, the franchise shops we actually continuously operate at those. So that acquisition is complete. They closed 1 night at the franchisee shop, opened the next morning, and our teams did just such an incredible job with that, seamless operation. I think you know, given the proximity to our headquarters, we have had the teams in here getting them getting ready for that, and they have done just a fantastic job with that. You know, on things like Salad and Go, and, like, clutch, that really is just adding, real estate to our pipeline. So that is part of our normal process, that we go through. it is really just building on that pipeline as we are on that March to 4 thousand shops in 2029. We have an incredible pipeline of leaders. So as I mentioned on the call, we have 525 operator candidates in our pipeline. Our operators sit just above SHOP, so they manage multiple shops. And so we have a very, very strong group of leaders. And as we look, you know, in particular at adding shops, in our pipeline in some of our markets that have been with us for the longest, like our Arizona market, we have an incredible bench of really, really strong leaders in the Arizona market. In the Vegas market. And so as we look to add more sites, we have got great people ready to operate those shops. Operator: Moving on to Brian Mullan with Stephens. Analyst: If you could provide us any detail on geographic distribution in terms of same restaurant sales drivers. I know in 1Q, you guys highlighted very strong results out of Texas, and that helped support the kind of system wide results. I am wondering if there is any other callouts this quarter and if you see any particular strength across any geographies? Christine Barone: Yeah. So we do not typically share strength across geographies. We had shared that last quarter really just to highlight 1 of our most competitive markets and to show how well Dutch Bros is showing up and competing in those markets. But as we look across our comp and our very strong comp, both from a system perspective and then from a company operated perspective, we are seeing strength across all dayparts with positive comp on all dayparts. We are seeing particular strength in the morning, and that is something, you know, as we roll out these different initiatives, we have been very focused on growing that morning daypart. So what we have been expecting to see is really showing up in the numbers. And just super pleased by how that is going. Operator: And our next question comes from Margaret-May Binshtok with Wolfe Research. Margaret-May Binshtok: Hey guys, thanks for taking my question. I just wanted to ask on the vibe check scorecard that you guys, just launched. I guess, can you talk a little bit about what it measures on, like, what the intent is? Is it behind, like, catching issues early or just identifying best practices so you can replicate them to other shops? Thank you. Christine Barone: Great. So if we look at the Vibe check scorecard, it is really measuring those things that are important to our business. So like everything at Dutch Bros, starts with our people, so really understanding turnover, we are working on a metric to really understand how are our crews doing and to make sure that our teams you know, have great visibility across the board to the shop. We also have customer metrics. So what do our customers think of how we are doing? What do they think of our speed, quality, and service? And what differences do we see across shops? And then finally, business metrics. So how are we staffing our shops? Are we staffing against the demand really well? And then how are we growing our customers? Are we inviting more customers into Dutch Bros? So it is really all of those things. That are a good important check. And as we roll this out, I think the most important thing at the beginning of the rollout is really the learning that our teams can see from each other. So we might have a shop that is doing particularly well in motivating their teams, and they have really great turnover metrics. And then the whole rest of that region will get to learn from that great operator and understand what they are doing. And so we will use it to understand where things are, where we can improve, But I think the greatest use of a tool like this is really the learning that our operators can provide for each other. Operator: We will hear next from Christopher Carril with KeyBanc Capital Markets. Christopher Carril: Hi. Thanks for taking the question. Can you expand on throughput opportunities that you are seeing today? Maybe how much potential upside you see from increasing throughput? Over the near to medium term? And if you could maybe speak to this in the context of your highest volume stores, maybe touch upon some of the learnings from the Melrose Park shop that would be helpful. Thank you. Christine Barone: Yeah. So we think we have a great path ahead of us to expand our throughput. And, you know, as we look at what is driving at what is driving the most right now, it really is on labor deployment. And so what we are looking at giving our shops very detailed and great information around how are they staffing versus the demand by day and by daypart. And as you look at that, it really helps match the demand, and then we can go through those very long lines that we have in some of our shops much quicker. And as I look at that and learnings from some of those very high volume shops, you know, I think we are doing a really great job of that, and our highest volume shops but really labor deployment helps across our entire system. And so getting that correct. The other thing we are working on is longer term opportunities. And really looking at the shop layout. So as we look at the demand, how much of the demand is coming out the drive through window, how much of the demand is coming out of our walk up window, especially now with mobile order at 16% sales. How do we balance that demand and make sure that the stations are in the right place and the work is happening in the right place at the shop. So very early days on that, but it excited by the work that the teams are starting to do on that. Operator: And we will go next to Matthew Curtis with D. A. David. Matthew Curtis: Hi, thanks. I have another question on Mist. With being added to the permanent menu. I mean, what metrics gave you confidence in making that decision to make it permanent so quickly? Is there any additional color you can provide on repeat rates, perhaps how they are tracking relative to Rebel? Or prior successful product introductions? Thank you. Christine Barone: Yeah. So if we look at adding Mist to the permanent menu, we have actually been working on MIST for quite some time. And so kind of starting from the beginning and how we develop a product first, we do concept testing to understand how does the as we describe this product to customers, how do we think they are going to react to it? We are actually asking them how does this product sound? What about these benefits? Things like that. Then we take it through some taste testing to see, is this really the best product on the market, and how do customers react to the taste of the product? Then we go and we actually do a market test. So we are looking for a smaller market test first to really test operations. And so can we make this? Does it fit within the cadence of what we are trying to do? And then we go to a broader market test where we are actually looking at volumes, we are looking at repeat rates, things like that. So even before the launch of Mist, we had a lot of great data indicating that we were likely going to leave this on as a permanent menu item, given what we had seen and really given the reaction as we as we had to temporarily take it off the menu for a little bit, and the customers really begging for it to come back. And then as we roll out, we look very carefully at what customers are new, where is it, again, occasions, what other platforms do we see the product drawing from? And what is interesting here is with Mist, not only do we see new occasions, occasions, we do see some of it drawing from Rebel, but we also see it drawing from things like lemonade. And so I think there is this real need in the market for that type of energy that a product like Mist provides. And then as we look at it, we look at repeat rates and what happens as we launch a normal LTO then what happens to that curve afterwards. And so we saw really great trial and then really strong repeat rates as Mist continued throughout quarter. Operator: And this now concludes our question and answer session. I would like to turn the floor back over to Christine Barone for closing comments. Christine Barone: Thank you for your questions. Before we wrap up, I would like to recognize an achievement that reflects the very best of Dutch Bros. In Q2, Drink 1 for Dame Day raised more than $1.7 million for the Muscular Dystrophy Association. The event also marked an incredible milestone, helping us surpass $20 million in lifetime donations to the MDA. Supporting critical ALS research, care, and services for families affected by the disease. Our partnership with the MDA continues to honor the legacy of our cofounder, Dane Boersma, and reflects our deep commitment to giving back to the communities we serve. As Dutch Bros continues to grow, so does the impact we are able to make together. Thank you to our broistas, our customers, and our community partners for helping us honor Dane's legacy and make a massive difference 1 cup at a time. Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day. Before you buy stock in Dutch Bros, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dutch Bros wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Dutch Bros. The Motley Fool has a disclosure policy. Dutch Bros (BROS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Stocks are often volatile around earnings, and even the slightest misstep can sometimes lead to big sell-offs. For long-term investors, though, these dips can be great buying opportunities, as the reasons behind them often have very little impact on a company's future prospects. Sandisk (NASDAQ: SNDK), AppLovin (NASDAQ: APP), and Dutch Bros (NYSE: BROS) all crashed after earnings and now look like good long-term buys. Let's look at the case for each. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » If you were to look at Sandisk's recent fiscal fourth-quarter earnings in a vacuum, they were incredible. Its revenue surged 372% year over year to $9 billion, while its adjusted earnings per share (EPS) skyrocketed from $0.29 a year earlier to $39.25. The results were driven by soaring NAND (flash) memory prices, which drove revenue growth and helped its gross margin expand from 26.2% last year to 84.6%. However, investors sent its shares sinking nearly 12% the following session as its fiscal Q1 guidance, which calls for revenue between $10.3 billion and $10.8 billion ($10.55 billion at the midpoint), came up just shy of the $10.62 billion consensus, and it projected its gross margin would slip slightly sequentially. However, the big reason behind the "light" forecast was that Sandisk decided to forgo some near-term revenue and gross margin gains in favor of locking in longer-term five-year deals for more sustained growth. It now has eight contracts with revenue floor pricing of $93.9 billion and $16.5 billion in financial guarantees. This is actually the type of visibility investors should want to see from a company that has historically been in a very cyclical industry. Trading at a forward price-to-earnings (P/E) ratio of 5.7, based on fiscal 2027 analyst estimates, the stock looks like a buy on the dip. AppLovin is another company that saw robust revenue growth, but whose stock fell on high expectations. The company's revenue soared 53% to $1.92 billion, but that was just short of the $1.94 billion analyst consensus, sending its shares crashing 20% the next session. The company said the revenue miss stemmed from its adtech AI model not improving at its usual speed, with the next big performance boost not coming until after the quarter ended. This led to a less robust pace of increased ad spending on its platform than expected, but it said the demand had already started to reaccelerate. The plunge in the stock brought its forward P/E ratio to 16, based on 2027 analyst estimates, which is very cheap for a company projecting revenue growth of between 46% and 48% next quarter. This is a growth stock worth buying on the sell-off. Dutch Bros shares sank nearly 17% after the coffee shop operator turned in another strong earnings report, as it forecast that its same-store sales growth would start to decelerate in the second half. However, its overall same-store sales growth remains strong and its expansion story remains unchanged. In Q2, the company saw its revenue jump by 32.5% to $550.9 million, while EPS climbed 40% to $0.28. Its same-store sales rose by 5.8%, on a 1.7% bump in transactions, while company-owned comparable-store sales climbed 8.3% on a 3.4% increase in transactions. However, investors didn't like that Dutch Bros only raised the low end of its prior full-year same-store guidance, taking it from 4% to 6% to a new range of 5% to 6%. Nonetheless, that is still solid same-store growth, and the company has a long growth runway of opening new stores. At the end of Q2, it had 1,225 stores, with plans to have over 2,000 by 2029 and a long-term target of 7,000 in the U.S. With impressive average unit volumes ($2.1 million), this is a company with tremendous growth ahead, making the stock a buy on the dip. Before you buy stock in Sandisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sandisk wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. Geoffrey Seiler has positions in Dutch Bros. The Motley Fool has positions in and recommends Dutch Bros. The Motley Fool has a disclosure policy. 3 Stocks to Buy After Post-Earnings Crashes was originally published by The Motley Fool

Dutch Bros Inc. reported past second-quarter 2026 results showing sales of US$510.03 million and revenue of US$550.85 million, with net income rising to US$37.41 million and diluted EPS from continuing operations increasing to US$0.28, and projected full-year 2026 total revenues between roughly US$2.10 billion and US$2.13 billion. At the same time, Dutch Bros agreed to acquire the real estate and site assets of up to 65 former Salad and Go drive-thru locations, aiming to convert them into Dutch Bros shops in 2027 to accelerate footprint growth and support its expanding food program in Arizona, Nevada, Oklahoma, and Texas. We’ll now examine how stronger earnings and the planned conversion of Salad and Go drive-thru sites might influence Dutch Bros’ investment narrative. Rare earth metals are the new gold rush. Find out which 28 stocks are leading the charge. To own Dutch Bros, you need to believe the company can keep translating rapid store growth and menu expansion into healthier earnings without letting costs or overbuilding get in the way. The latest quarter’s higher net income and tighter full year revenue guidance support that near term earnings momentum, while the Salad and Go site deal adds more potential units but also reinforces market saturation and execution risk if new shops do not ramp efficiently. The most relevant update here is the agreement to acquire up to 65 former Salad and Go drive thru locations across Arizona, Nevada, Oklahoma, and Texas, which directly ties into Dutch Bros’ growth catalyst of densifying high awareness markets and leaning harder into convenience. If conversions progress as planned in 2027, they could accelerate the footprint and help its growing food program, but they also raise the stakes on controlling build out costs and maintaining healthy shop level margins as the system scales. Yet behind that rapid expansion, one risk investors should be aware of is the potential for market saturation and... Read the full narrative on Dutch Bros (it's free!) Dutch Bros’ narrative projects $3.3 billion revenue and $230.4 million earnings by 2029. Uncover how Dutch Bros' forecasts yield a $79.75 fair value, a 50% upside to its current price. Five Simply Wall St Community fair value estimates for Dutch Bros span roughly US$13.91 to US$79.79 per share, underscoring how differently private investors see its potential. When you set that wide range against Dutch Bros’ aggressive drive thru expansion and food rollout, it highlights how much of the company’s long term performance hinges on sustaining profitable growth rather than just opening more shops. Explore 5 other fair value estimates on Dutch Bros - why the stock might be worth less than half the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Dutch Bros research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Dutch Bros research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Dutch Bros' overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BROS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Dutch Bros (BROS) is back in focus after its latest quarterly report and expansion update. Fresh earnings figures, new full year revenue guidance, and a planned acquisition of drive thru sites give investors several moving pieces to consider. See our latest analysis for Dutch Bros. Dutch Bros shares, which closed at US$53.01, have come under pressure in the short term, with the 7 day share price return down 19.47% and the 30 day share price return down 21.54%, even though the 90 day share price return is up 3.68% and the 3 year total shareholder return sits at 59.19%. Recent earnings, new 2026 revenue guidance, and the planned acquisition of Salad and Go drive thru sites appear to have shifted market focus toward execution risk after a period of stronger long term gains. If you are weighing Dutch Bros alongside other opportunities, this could be a useful moment to scan the market for other consumer facing growth stories through the 19 top founder-led companies For Dutch Bros, the recent share price drop sits against upbeat revenue guidance and an expansion plan built around acquired drive thru sites. Is the stock now tracking sentiment swings more than the underlying business, or not? Against Dutch Bros' last close of $53.01, the most widely followed narrative points to a fair value of $79.75, with that gap explained by long term growth and margin assumptions that differ from what the current share price implies. Investments in digital innovation including increasing adoption of mobile ordering, personalization in the Dutch Rewards loyalty program, and targeted paid advertising are enhancing customer retention, frequency, and segmentation, which is likely to expand customer lifetime value and drive higher same store sales growth and margin expansion. Read the complete narrative. Want to understand why this narrative still supports a higher value for Dutch Bros despite recent share price weakness? The core story leans heavily on rapid revenue expansion, faster earnings growth, and a richer profit margin profile several years out, all wrapped in a premium future earnings multiple. Curious which specific growth path and profitability levels have to line up for that to hold? The answers sit inside the full narrative model that underpins this fair value. Result: Fair Value of $79.75 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this narrative can crack if Dutch Bros experiences sustained labor cost pressure or if rapid unit growth drags on same-shop sales and returns. Find out about the key risks to this Dutch Bros narrative. The fair value of $79.75 for Dutch Bros comes from a long term narrative built around growth and margins. The current P/E of 79.2x is far above the US Hospitality industry at 23.2x, the peer average at 47.8x, and the fair ratio of 41.2x. This points to meaningful valuation risk if sentiment cools. That gap raises a simple question for investors: Is Dutch Bros priced for a future that already assumes much of the upside, or is the stock just temporarily out of sync with the fair ratio that the market could move toward over time? See what the numbers say about this price — find out in our valuation breakdown. Given the mix of optimism and concern running through this Dutch Bros story, it makes sense to review the underlying data and act on your own judgment. To see both sides laid out clearly in one place, start with the 3 key rewards and 1 important warning sign. Do not just stop at Dutch Bros. Broaden your watchlist with fresh ideas so you are not relying on a single story when the market next shifts. Target value first and see which companies combine quality fundamentals with attractive pricing through the 52 high quality undervalued stocks. Strengthen your downside protection by focusing on companies with resilient finances using the solid balance sheet and fundamentals stocks screener (48 results). Spot potential early stage opportunities with healthier profiles than typical micro caps by scanning the 20 elite penny stocks with strong financials. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BROS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Retail traders are treating recent post-earnings declines as buying opportunities, favoring companies with strong long-term growth potential. A Stocktwits poll ranked AppLovin first (33%) and Dutch Bros second (32%), followed by Celsius (21%) and Axon Enterprise (14%). Scotiabank and Wedbush maintained bullish ratings on AppLovin despite lowering their price targets. Growth stocks including AppLovin (APP), Dutch Bros (BROS), Celsius Holdings (CELH) and Axon Enterprise (AXON) took a hit after second-quarter (Q2) earnings, but retail investors are hunting for opportunities. AppLovin and Dutch Bros emerged as the top dip-buying targets, with traders betting on AI-powered advertising growth and aggressive store expansion despite concerns over margins and valuations. Retail traders see the recent stock drops as buying opportunities, looking past short-term cost and margin pressures to focus on long-term growth in AI and consumer businesses. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox A Stocktwits poll showed that retail investors were most leaned toward buying AppLovin and Dutch Bros after their post-earnings declines. AppLovin received 33% of the votes, while Dutch Bros followed closely with 32%, making them the top two choices among the stocks polled. Celsius finished third in the poll as investors weighed its strong Q2 revenue of $817.9 million against lower profits due to higher promotional and operating costs. Axon Enterprise received 14% of the votes, the lowest among the four companies, as higher component costs hurt margins despite reporting $904.3 million in revenue. AppLovin stock sank 19% on Thursday as weak Q2 revenue and outlook weighed on the stock. CEO Adam Foroughi linked the softness to AI model upgrade timing, not demand weakness, while citing record advertiser spending and a strong Q3 start. Scotiabank and Wedbush analysts trimmed their price targets, though both firms maintained bullish ratings and pointed to long-term growth opportunities. Scotiabank reduced its price target on AppLovin to $515 from $775 while keeping an ‘Outperform’ rating. The firm said the quarter’s weakness appeared tied to the timing of AI model improvements rather than a broader deterioration in the business. Wedbush also lowered its AppLovin price target, moving it to $610 from $640, but retained an ‘Outperform’ recommendation. The firm highlighted continued expansion in AppLovin’s gaming business, growth from its consumer advertising platform and the company’s ability to maintain a competitive advantage through its AI infrastructure. Dutch Bros stock dropped 18% in Thursday’s session despite both Q2 revenue and earnings coming in above Street expectations. also became a favored target among investors looking beyond near-term pressure. Higher commodity expenses and expansion-related costs weighed on the coffee-chain’s sentiment, but traders pointed to store growth plans and improving sales trends as reasons to consider the decline attractive. The company received mixed reactions from Wall Street, with analysts lowering price targets but maintaining positive views on it’s long-term growth prospects. DA Davidson reduced its price target for Dutch Bros to $85 from $90 while keeping a ‘Buy’ rating, saying the company’s quarterly performance showed strength in key areas despite the market’s negative response. The firm noted strong same-store sales, solid store productivity and better-than-expected EBITDA performance, supporting confidence that the recent pullback may be temporary. RBC Capital analyst Logan Reich also lowered the price target to $70 from $75, while maintaining an ‘Outperform’ rating. The analyst pointed to improved margins, stronger performance from newer locations and progress in customer targeting efforts as reasons for optimism. So far this year, APP, BROS, AXON and CELH stocks have declined between 8% and 50%. Also See: WEN Stock Rises Overnight Ahead Of Q2 Results: Retail Bulls Eagerly Hope For 'Short Squeeze' For updates and corrections, email newsroom[at]stocktwits[dot]com. Shivani Kumaresan has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: TG Q2 2026 Earnings Summary S&P 500 Hits Record Highs — But BofA Warns Bullish Sentiment Has Gone Too Far Duos Technologies Group Completes Sale of Duos Technologies, Inc. to Sandbank Acosta, LLC

Dutch Bros (BROS) reported $550.85 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 32.5%. EPS of $0.33 for the same period compares to $0.26 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $524.2 million, representing a surprise of +5.08%. The company delivered an EPS surprise of +13.79%, with the consensus EPS estimate being $0.29. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Dutch Bros performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: System same shop sales and transactions: 5.8% versus the six-analyst average estimate of 5.4%. Shop count, end of period - Total shop count: 1,225 versus 1,218 estimated by six analysts on average. Shop count, end of period - Franchised: 337 versus 336 estimated by five analysts on average. Shop count, end of period - Company-operated: 888 compared to the 882 average estimate based on five analysts. Total net - new shop openings: 48 compared to the 42 average estimate based on four analysts. Franchised new openings: 4 versus the four-analyst average estimate of 3. Company-operated same shop sales and transactions: 8.3% versus 6.8% estimated by four analysts on average. Company-operated new openings: 44 compared to the 39 average estimate based on four analysts. Revenues- Franchising and other: $40.82 million versus the seven-analyst average estimate of $38.68 million. The reported number represents a year-over-year change of +15.6%. Revenues- Company-operated shops: $510.03 million compared to the $485.52 million average estimate based on seven analysts. The reported number represents a change of +34% year over year. View all Key Company Metrics for Dutch Bros here>>> Shares of Dutch Bros have returned -3.3% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dutch Bros Inc. (BROS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Dutch Bros Inc.? Here are five stocks we like better. Strong Q2 performance: Dutch Bros reported 32% revenue growth to $551 million, with adjusted EBITDA up 28% to $114 million and company-operated same-shop sales rising 8.3%. Management cited transaction growth, food adoption and menu innovation. 2026 outlook raised: The company now expects $2.1 billion-$2.13 billion in revenue, $385 million-$390 million in adjusted EBITDA and at least 185 new shops, despite anticipated coffee-cost and occupancy pressures. Expansion and new offerings accelerate growth: Dutch Bros opened 48 shops in Q2, acquired rights to 31 Phoenix-area locations and plans to convert up to 65 Salad and Go sites. Its new Myst Energy Refreshers will become a permanent menu item, while Rewards accounted for more than 73% of transactions. Starbucks Builds Sovereign AI to Cut $400 Million in Software Costs Dutch Bros (NYSE:BROS) reported second-quarter 2026 revenue growth of 32% and raised its full-year outlook, citing transaction gains, food-program adoption, menu innovation and continued new-shop productivity. Total revenue for the quarter ended June 30 reached $551 million, while adjusted EBITDA increased 28% year over year to $114 million. Adjusted earnings per share were $0.33, compared with $0.26 in the prior-year quarter, CFO Josh Guenser said on the company’s Aug. 5 earnings call. → 3 Drone Stocks That Should Soar After the Summer Slump Dutch Bros Q1 Earnings: The Newest Starbucks Rival Faces Its First Big Reality Check Company-operated same-shop sales rose 8.3% during the quarter, including 3.4% transaction growth. Systemwide same-shop sales increased 5.8%, with transactions up 1.7%. CEO and President Christine Barone said the quarter marked the company’s eighth consecutive quarter of transaction growth and its 13th straight quarter of positive comparable sales. Dutch Bros raised its 2026 outlook following its year-to-date performance and the acquisition of a Phoenix East Valley franchisee. The company now expects total revenue of $2.1 billion to $2.13 billion, representing 28% to 30% year-over-year growth, and adjusted EBITDA of $385 million to $390 million. System same-shop sales growth is projected at 5% to 6% for the full year, with the company trending toward the midpoint of that range. Third-quarter system same-shop sales are expected to increase about 4% to 5%. The company expects to open at least 185 system shops during 2026. Capital expenditures are projected at $350 million to $370 million. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 2026 Food Inflation Outlook: This ETF Could Outperform Guenser said the third-quarter comparable-sales outlook reflects more difficult transaction comparisons, lower effective pricing and the anniversary of the food-program rollout that began in the third quarter of 2025. He said pricing taken during the year will contribute less than one percentage point to ticket growth in the second half after another price increase rolled off in early July. The company expects higher coffee costs to continue affecting results in the back half of the year. Its updated outlook includes roughly 60 basis points of full-year cost-of-goods pressure, including food-program costs. The midpoint of adjusted EBITDA guidance assumes approximately 20 basis points of year-over-year margin pressure from coffee and occupancy costs, partly offset by leverage in adjusted SG&A. → Jersey Mike's Serves Fresh Gains After IPO Stumble Dutch Bros opened 48 system shops in the second quarter and said it now has about 90% of the pipeline needed to reach its goal of 2,029 shops in 2029. Barone said new-market results in Chicago, Atlanta, Charlotte and Tampa have supported management’s confidence in the national expansion strategy. The company’s first greater Chicago shop had been pacing toward approximately $4 million in volume, while its Melrose Park location is pacing toward approximately $7 million, according to Barone. The Melrose Park opening also established a company opening-day record. Dutch Bros entered its 26th state, Mississippi, in July. Last week, Dutch Bros completed the purchase of franchise rights and assets for 31 Phoenix-area locations, including one location under development, for $63.5 million. The company expects the deal to provide about $25 million in net incremental revenue and approximately $5 million in incremental adjusted EBITDA for the remainder of 2026, with the revenue figure including a roughly $5 million reduction in franchise and other revenue. The company also agreed to acquire real estate and related site assets for up to 65 Salad and Go locations in Arizona, Nevada, Oklahoma and Texas. Dutch Bros expects to close that transaction during the current quarter, subject to approvals and customary conditions, with conversions expected in 2027. Guenser said the locations are comparable in size to Dutch Bros shops and could offer relatively straightforward conversions. Dutch Bros completed the rollout of its new food program at roughly 750 system shops by the end of the second quarter, ahead of schedule. Barone said the offering has helped the company serve more morning occasions and has produced quick food-attachment gains in shops as the program launches. Food rollout to franchise locations is expected to begin next quarter. Barone noted that about 300 shops will not be able to offer the hot-food program and that these locations are disproportionately within the franchise system. The company also introduced Myst Energy Refreshers during the quarter, a plant-powered energy-drink platform that complements its Rebel energy lineup. Dutch Bros said Myst drove trial through a Coffee Fill-A-Tray event, increased energy’s overall sales mix and generated retention rates ahead of recent limited-time-offer benchmarks. The company has decided to add Myst permanently to the menu. Barone said Myst demand has been strongest in the afternoon, although the product is also gaining morning occasions. She said customer demographics are broadly similar to Rebel’s, while the product has also drawn some demand from lemonade purchases. Digital engagement continued to rise, with more than 73% of transactions flowing through Dutch Rewards at quarter-end. Registered members per shop have increased more than 50% over the past three years, Barone said. Order Ahead represented about 16% of transactions. Management attributed the rewards program’s contribution to comparable sales to increased data segmentation, personalized offers and new engagement capabilities, including customer “streaks.” Company-operated shop revenue rose 34% to $510 million, while company-operated shop contribution increased 32% to $156 million. Shop contribution margin was approximately 31%. Beverage, food and packaging costs represented 26.1% of company-operated shop revenue, up 80 basis points year over year. Labor expense was 25.4% of shop revenue, improving 120 basis points due primarily to sales leverage. Occupancy and other costs increased 50 basis points to 16.3% of revenue, reflecting higher rent as Dutch Bros shifts more of its portfolio toward build-to-suit leases. The company ended June with approximately $699 million of total liquidity, including $269 million of cash and cash equivalents. Average capital expenditures per shop were approximately $1.4 million in the second quarter. Barone said the company is working to improve throughput through labor deployment, shop layouts, equipment and operational processes. Dutch Bros also introduced a Vibe Check Scorecard during the quarter to provide leaders with visibility into employee turnover, customer feedback, staffing and business performance at the shop level. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Dutch Bros Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Dutch Bros Inc. BROS used its second-quarter 2026 earnings call to emphasize sustained transaction growth, stronger new-shop productivity and more customer occasions. Management raised full-year guidance after results exceeded expectations and the company completed a Phoenix franchise acquisition. Adjusted earnings of 33 cents per share beat the Zacks Consensus Estimate of 29 cents. Revenues of $550.9 million topped the Zacks Consensus Estimate of $524.2 million and increased 32.5% year over year. Dutch Bros Inc. price-consensus-eps-surprise-chart | Dutch Bros Inc. Quote CFO Joshua Guenser raised 2026 revenue guidance to $2.1 billion to $2.13 billion and adjusted EBITDA guidance to $385 million to $390 million. At least 185 system shop openings remain planned. Systemwide same-shop sales are now expected to grow 5% to 6%, with results trending toward the midpoint. Management expects 4% to 5% growth in the third quarter. A UBS analyst asked about the back-half outlook. Guenser cited tougher transaction comparisons, lower effective pricing and the anniversary of the food rollout, while CEO and president Christine Barone said the company’s sales initiatives remained effective. Barone said the quarter marked the eighth consecutive period of transaction growth and the 13th straight quarter of positive same-shop sales. Company-operated same-shop sales rose 8.3%, including 3.4% transaction growth. Systemwide same-shop sales increased 5.8%, with transactions up 1.7%. When a TD Cowen analyst questioned the implied third-quarter slowdown, Guenser again identified comparisons and pricing as the primary drivers. Barone emphasized mobile ordering, rewards, food and menu innovation as continuing traffic drivers. Dutch Bros opened 48 shops during the quarter, including 44 company-operated locations. Management said it has about 90% of the pipeline required to reach 2,029 shops in 2029. The company acquired franchise rights and assets for 31 Phoenix-area locations for $63.5 million. Management expects about $25 million of incremental 2026 revenues and $5 million of adjusted EBITDA from the transaction. Dutch Bros also agreed to acquire up to 65 Salad and Go sites for conversions beginning in 2027. Guenser told a Guggenheim analyst that the sites provide suitable real estate in markets where management still sees substantial white space. Barone said the food program reached about 750 system shops by quarter-end, ahead of schedule. The offering is designed to strengthen the morning daypart and capture visits previously lost to breakfast competitors. A Baird analyst asked about the platform’s next phase. Barone said food attach rises quickly after launch and that the current nine-item lineup leaves room for broader awareness and seasonal offerings. Myst Energy Refreshers earned a permanent menu position after strong trial and repeat rates. Dutch Rewards represented more than 73% of transactions, while Order Ahead reached about 16% of transaction mix, giving management additional tools to build frequency. Company-operated shop contribution margin was 30.6%, compared with 31.1% a year earlier. Higher coffee, food and occupancy costs offset labor and administrative leverage. Guenser said 2026 guidance includes about 60 basis points of cost-of-goods pressure and roughly 50 basis points of occupancy pressure. Adjusted SG&A is expected to produce about 90 basis points of leverage. At the midpoint of guidance, adjusted EBITDA margin would face about 20 basis points of year-over-year pressure. Management maintained that shop economics and sales growth support continued expansion despite those cost pressures. Management’s tone remained confident but focused on execution. Its priorities are transaction growth, stronger customer routines, disciplined development and enough leadership depth to support national expansion. The call showed Dutch Bros relying on coordinated growth levers rather than a single promotion or pricing action. Food, energy innovation, digital engagement and real estate development remain central to the company’s direction. BROS carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings-estimate revision outlook. Its Growth Score of A is favorable, while the Value Score of F, Momentum Score of C and VGM Score of C create a mixed style profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Style Scores complement the Zacks Rank, with A and B grades representing stronger characteristics. The Zacks Rank can change as analyst estimates are revised following the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dutch Bros Inc. (BROS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research