📊 BROS Key Takeaways
Is Dutch Bros Inc. (BROS) a Good Investment?
Dutch Bros demonstrates strong revenue growth of 27.9% but profitability is deteriorating sharply, with net income declining 31.9% YoY—indicating severe margin compression and operational challenges. The company's returns on equity (2.3%) and assets (0.5%) are unacceptably low, suggesting the rapid expansion is destroying shareholder value despite positive cash flow, and this disconnect between growth and profitability raises fundamental concerns about business model sustainability.
Dutch Bros shows strong top-line momentum with revenue up 27.9% year over year while remaining solidly profitable at the operating and net income levels. Financial health looks sound, with good liquidity, manageable leverage, and positive free cash flow, although thin net margins and a sharp decline in net income suggest growth is still carrying execution risk. Overall, the fundamentals support a constructive view, but the business still needs to prove that rapid expansion can translate into more consistent bottom-line improvement.
Dutch Bros Inc. Key Strengths (BROS)
- Strong top-line revenue growth of 27.9% YoY demonstrating market demand and expansion
- Positive operating cash flow of 84.7M and free cash flow of 27.7M showing underlying cash generation
- Moderate leverage with Debt/Equity ratio of 0.29x and adequate cash position of 263.5M providing financial flexibility
- Revenue growth is strong at 27.9% year over year, indicating continued demand and expansion traction
- Balance sheet and liquidity are healthy, with a 1.49x current ratio, 1.28x quick ratio, and low 0.30x debt-to-equity
- Operating cash flow of $295.55M and positive free cash flow show the business is funding growth without obvious balance-sheet strain
BROS Stock Risks: Dutch Bros Inc. Investment Risks
- Net income declined 31.9% YoY despite revenue growth—severe margin compression indicating deteriorating unit economics and operational inefficiency
- Extremely poor returns on equity (2.3%) and assets (0.5%) signaling capital is not being deployed productively
- Thin operating margin of 7.4% and net margin of 3.5% typical of struggling retail food/beverage operators with pricing power or cost control issues
- Net income fell 31.9% year over year, which raises questions about earnings durability despite higher revenue
- Net margin remains modest at 4.9%, leaving limited room for cost pressure or execution mistakes
- Capital expenditures are very high relative to cash generation, which could keep free cash flow constrained during expansion
Key Metrics to Watch
- Net income trend—must stabilize and grow with revenue for thesis validation
- Gross margin transparency—currently unavailable but critical to isolate cost of goods vs. operating expense issues
- Free cash flow conversion rate—must remain above 6% and ideally improve as company matures
- Net income and net margin trend
- Free cash flow conversion after capital expenditures
Dutch Bros Inc. (BROS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Dutch Bros Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BROS Profit Margin, ROE & Profitability Analysis
BROS vs Consumer Sector: How Dutch Bros Inc. Compares
How Dutch Bros Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Dutch Bros Inc. Stock Overvalued? BROS Valuation Analysis 2026
Based on fundamental analysis, Dutch Bros Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Dutch Bros Inc. Balance Sheet: BROS Debt, Cash & Liquidity
BROS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Dutch Bros Inc.'s revenue has grown significantly by 229% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.03 reflects profitable operations.
BROS Revenue Growth, EPS Growth & YoY Performance
BROS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $355.2M | $15.4M | $0.13 |
| Q3 2025 | $338.2M | $12.6M | $0.11 |
| Q2 2025 | $324.9M | $11.9M | $0.12 |
| Q1 2025 | $275.1M | $7.1M | $0.08 |
| Q3 2024 | $264.5M | $3.1M | $0.05 |
| Q2 2024 | $249.9M | -$1.1M | $-0.02 |
| Q1 2024 | $197.3M | -$3.8M | $-0.07 |
| Q3 2023 | $198.6M | $1.8M | $0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Dutch Bros Inc. Dividends, Buybacks & Capital Allocation
BROS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Dutch Bros Inc. (CIK: 0001866581)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 2, 2026 | 4 | xslF345X06/wk-form4_1780432271.xml | View → |
| Jun 2, 2026 | 4 | xslF345X06/wk-form4_1780432258.xml | View → |
| Jun 2, 2026 | 4 | xslF345X06/wk-form4_1780432243.xml | View → |
| May 29, 2026 | 4 | xslF345X06/wk-form4_1780087748.xml | View → |
| May 29, 2026 | 4 | xslF345X06/wk-form4_1780087728.xml | View → |
❓ Frequently Asked Questions about BROS
What is the AI rating for BROS?
Dutch Bros Inc. (BROS) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 62% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BROS's key strengths?
Claude: Strong top-line revenue growth of 27.9% YoY demonstrating market demand and expansion. Positive operating cash flow of 84.7M and free cash flow of 27.7M showing underlying cash generation. ChatGPT: Revenue growth is strong at 27.9% year over year, indicating continued demand and expansion traction. Balance sheet and liquidity are healthy, with a 1.49x current ratio, 1.28x quick ratio, and low 0.30x debt-to-equity.
What are the risks of investing in BROS?
Claude: Net income declined 31.9% YoY despite revenue growth—severe margin compression indicating deteriorating unit economics and operational inefficiency. Extremely poor returns on equity (2.3%) and assets (0.5%) signaling capital is not being deployed productively. ChatGPT: Net income fell 31.9% year over year, which raises questions about earnings durability despite higher revenue. Net margin remains modest at 4.9%, leaving limited room for cost pressure or execution mistakes.
What is BROS's revenue and growth?
Dutch Bros Inc. reported revenue of $464.4M.
Does BROS pay dividends?
Dutch Bros Inc. does not currently pay dividends.
Where can I find BROS SEC filings?
Official SEC filings for Dutch Bros Inc. (CIK: 0001866581) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BROS's EPS?
Dutch Bros Inc. has a diluted EPS of $0.13.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BROS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Dutch Bros Inc. has a B grade with 62% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BROS stock overvalued or undervalued?
Valuation metrics for BROS: ROE of 2.3% (sector avg: 18%), net margin of 3.5% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is BROS's AI grade for 2026?
Our dual AI analysis gives Dutch Bros Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BROS's free cash flow?
Dutch Bros Inc.'s operating cash flow is $84.7M, with capital expenditures of $57.0M. FCF margin is 6.0%.
How does BROS compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 3.5% (avg: 8%), ROE 2.3% (avg: 18%), current ratio 1.33 (avg: 1.5).