Dutch Bros Inc. SEC 10-Q Report

Dutch Bros Inc., a leading operator and franchisor of drive-thru coffee shops, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant growth in both financial and operational metrics, driven by new shop openings and increased same shop sales. The company continues to expand its footprint across the United States while enhancing operational efficiencies.

Financial Highlights

• Total Revenues: $415.8 million, reflecting a 28.0% increase from the same period in the prior year, driven by new shop openings and a 7.8% increase in same shop sales.
• Gross Profit: $92.6 million, representing a 32.2% increase from the prior year, with a gross profit margin of 24.3%, up 60 basis points due to leverage from increased sales.
• Income from Operations: $54.7 million, up from $32.2 million in the prior year, indicating improved operational efficiency.
• Net Income: $38.4 million, an increase from $22.2 million in the prior year, with a net income margin of 9.2%.
• Net Income Per Share: $0.20, compared to $0.12 in the prior year, reflecting improved profitability and operational performance.

Business Highlights

• Revenue Segments: The company operates two main segments: Company-operated shops and Franchising and other. The Company-operated shops segment includes retail coffee shop sales to end consumers, while the Franchising and other segment includes bean and product sales to franchise partners, initial franchise fees, royalties, and marketing fees related to the franchise partners, as well as sales of products through the company's website.
• Sales Units: As of June 30, 2025, Dutch Bros had 1,043 shops in operation across 19 U.S. states, comprising 725 company-operated and 318 franchised locations. This represents a 14.4% increase in total shop count compared to the same period in the previous year.
• Company-operated Shops Performance: The Company-operated shops segment saw a significant increase in revenue, driven by $63.9 million from newly opened shops not yet in the comparable shop base and $21.3 million from a 7.8% increase in same shop sales within the comparable shop base.
• Franchising and Other Segment Performance: The Franchising and other segment experienced a 19.1% increase in revenue for the three months ended June 30, 2025, primarily driven by inventory management and newly opened franchised shops not in the comparable shop base.
• Operational Efficiency: The company reported a decrease in beverage, food, and packaging costs as a percentage of company-operated shop revenues by 20 basis points for the three months ended June 30, 2025, due to pricing impacts and favorable dairy pricing.
• Labor Costs Management: Labor costs as a percentage of company-operated shop revenues decreased by 60 basis points for the three months ended June 30, 2025, primarily due to the impact of pricing.
• Occupancy and Other Costs: Occupancy and other costs increased by 80 basis points as a percentage of company-operated shop revenues for the three months ended June 30, 2025, mainly due to the impact of occupancy rates from new shops.
• Future Outlook: The company expects to continue expanding its shop count and enhancing operational efficiencies. It is also evaluating further pricing actions to mitigate the impact of minimum wage increases and other cost pressures.

SEC Filing: Dutch Bros Inc. [ BROS ] - 10-Q - Aug. 06, 2025