Key Highlights

● Second-quarter total revenue rose 32.5 per cent year over year to $550.9 million.

● The company opened 48 new shops in the quarter, ending June with 1,225 total.

● Adjusted EBITDA increased 27.8 per cent to $113.7 million, a 20.6 per cent margin.

● Dutch Bros agreed to buy up to 65 Salad and Go real estate sites.

Dutch Bros Inc. (NYSE:BROS) published its second-quarter 2026 results on 5 August, for the quarter ended 30 June. Total revenues were $550.9 million, up 32.5 per cent from $415.8 million. Company-operated same shop sales rose 8.3 per cent, with transactions up 3.4 per cent, while systemwide same shop sales grew 5.8 per cent on transactions up 1.7 per cent. Net income was $51.6 million, against $38.4 million a year earlier, and diluted earnings per Class A share were $0.28 versus $0.20. Adjusted EBITDA increased 27.8 per cent to $113.7 million, a margin of 20.6 per cent compared with 21.4 per cent in the prior-year quarter. Management raised its full-year 2026 guidance on revenue, same shop sales and adjusted EBITDA, which are forward-looking company estimates rather than outcomes.

Shop expansion and the Salad and Go purchase

The company ended June with 1,225 shops, comprising 888 company-operated and 337 franchised. It opened 48 in the quarter, 44 company-operated and four franchised, and 89 year to date. Guidance for the full year calls for at least 185 system openings, revenues of roughly $2.10 billion to $2.13 billion, same shop sales growth of 5 to 6 per cent, adjusted EBITDA of $385 million to $390 million and capital expenditure of $350 million to $370 million. On 5 August, Dutch Bros also announced an agreement to buy up to 65 Salad and Go sites in Arizona, Nevada, Oklahoma and Texas, according to market data. The deal covers real estate rather than the operating business, Salad and Go having filed for Chapter 11 protection. Market data indicated that completion was expected in the third quarter, with conversions planned for next year and no price disclosed. Company guidance excludes this transaction. The same report cited a goal of 2,029 locations by 2029.

Margins, balance sheet and share structure

Profitability held up reasonably well despite heavy investment in new shops. For the first half, adjusted EBITDA was $193.1 million, a margin of 19.0 per cent against 19.7 per cent a year earlier, so margins eased slightly. Contribution margin for company-operated shops, which excludes depreciation, was 30.6 per cent against 31.1 per cent a year ago, and for the first half it was 29.5 per cent against 30.3 per cent. Operating cash flow for the six months was $196.9 million, up from $126.8 million, while investing outflows were $149.0 million. Cash and equivalents were $268.6 million at 30 June, and debt totalled about $198.5 million. The balance sheet also carries a tax receivable agreement liability of about $973 million, associated with the company's Up-C structure, in which Class A shares are only one part of the equity; the release shows 43.2 million assumed exchanges of OpCo units, producing 178.0 million adjusted fully exchanged diluted shares against 134.8 million Class A diluted shares. Investors comparing per-share measures should note which share count is used. The release declares no dividend, and none has been verified.

Expansion Pace Tests Margin Discipline

Dutch Bros is growing fast on nearly every measure, from shop count to same-shop sales to revenue, and it raised full-year guidance accordingly. Contribution margin for company-operated shops eased slightly as new-shop investment continues, and the pending Salad and Go site purchase adds further expansion outside the company's existing guidance. With a tax receivable agreement liability of about $973 million tied to its Up-C structure, investors comparing per-share measures need to track which share count, Class A or fully exchanged, is being used.