Dutch Bros (BROS 3.97%) once again delivered strong results when it reported its fourth-quarter earnings. Despite the coffeeshop operator's continued strong operational performance, the stock is down more than 35% over the past year, as of this writing.
Let's take a closer look at its results and prospects to see if the stock is a buy.
Image source: Getty Images.
Same-store sales shine
Dutch Bros continues to see strong same-store sales (comps) growth, with comparable-restaurant sales rising by 7.7% in the quarter and same-store transactions climbing 5.5%. Company-owned stores once again outperformed, with comparable-shop sales soaring 9.7% on a 7.6% jump in transactions.
Order-ahead mobile ordering is helping drive same-store sales, with mobile ordering now making up about 14% of its transactions, up from 13% in Q3 and 11.5% in Q2. The company also continues to roll out hot food items, which have been giving stores a 4% comp lift. Looking ahead, Dutch Bros projected that its 2026 same-store sales would rise between 3% and 5%.
The company also continues to aggressively expand its store base. It opened 154 new shops in 2025, including 141 company-owned locations, and it expects to add at least 181 new shops in 2026. It said the path to opening 2,029 shops by 2029 is very clear.
Dutch Bros generated $54.4 million in free cash flow for 2025, so it continues to fund its build-out with its operating cash flow. Importantly, it said it has been able to reduce the capital expenditures (capex) it spends on each shop, taking it from $1.8 million a year ago to $1.3 million.
The combination of strong comparable-restaurant sales and new stores, meanwhile, led to a 29% increase in total Q4 revenue to $443.6 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 49% year over year to $72.6 million, while adjusted earnings per share (EPS) more than doubled from $0.07 to $0.17.
Looking ahead, the company is projecting 2026 revenue to be between $2 billion and $2.03 billion, representing growth of 22% to 24%. It forecast adjusted EBITDA to be between $355 million and $365 million.
NYSE: BROS
Key Data Points
Is the stock a buy?
Dutch Bros is one of the best expansion stories in the restaurant space. It's growing its store base at a nice clip, while importantly self-funding expansion through its cash flow. And while its shops are small in size and don't cost much to build, they generate an impressive $2.1 million in average unit volume (AUV).
Meanwhile, the company still has a nice opportunity to boost its same-store sales with its new food offerings. Trading at a forward price-to-sales multiple of 3.2 versus 2.8 for the much more mature Starbucks, Dutch Bros stock is a relative bargain given its much longer growth runway. Between its expansion opportunities and same-store growth levers, this is a growth stock to own.
