Dutch Bros Inc. Q4 FY2025 earnings call

• Dutch Bros Inc. showed strong momentum in 2025 with 28% revenue growth, 31% adjusted EBITDA growth, and 16% new shop growth from 154 new shop openings.
• Q4 2025 results maintained strength with 29% revenue growth, system same shop sales growth of 7.7%, and company-operated same shop sales growth of 9.7%.
• 2025 saw expansion into seven contiguous states, including North Carolina, with 1,136 system-wide shops. The shop pipeline accelerated, with shop approvals more than doubling vs 2024.
• Implemented foundational initiatives like paid advertising, CPG platform (creamers, coffee pods, etc.), loyalty program (Dutch Rewards with over 15,000,000 members, 72% of system transactions in 2025), order ahead program (14% mix in Q4 2025), and new food program (expanded to over 300 shops across 11 states by end of 2025).
• Jen Summers joined as Chief Shop Officer to focus on scaling operations and customer experience.

In 2025, total revenues reached $1,640,000,000, a 28% increase. Adjusted EBITDA grew 31% to $303,000,000. For Q4 2025, total revenues were $444,000,000, a 29% increase. System-wide AUVs hit a record $2,100,000. Company-operated revenue in Q4 was $410,000,000, up 30%, with company-operated same shop sales growth of 9.7%. Company-operated shop contribution margin was 27.6%, with beverage, food, and packaging costs at 27% of revenue, 160 basis points unfavorable year over year due to higher coffee costs and new food program rollout.

• Expect to open at least 181 system shops in 2026, including 20 Clutch Coffee Bar conversions.
• System same shop sales growth expected to be 3%-5% in 2026, with approximately 4% comp lift in shops with the new food program.
• Total revenues projected to be between $2,000,000,000 and $2,030,000,000, up 22%-24% year over year.
• Adjusted EBITDA estimated to be between $355,000,000 and $365,000,000.
• Capital expenditures estimated to be between $270,000,000 and $290,000,000.

• Competition pressures in local markets and nationally, though the company believes its value proposition and brand strength mitigate this.
• Commodity cost pressures, particularly coffee costs, which had a 160 basis point unfavorable impact in 2025 and are expected to continue affecting margins in 2026.
• Execution risks related to rolling out new initiatives like the food program and maintaining operational efficiency across expanded shop count.

Q: Investors are focused on same store sales resiliency as larger limited service restaurants launch energy and iced coffee beverages. Can you talk about levers to protect traffic?

A: Christine Barone noted the company's strong value proposition, service, and quality of beverages, and confidence in the business's position in the growing market.

Q: Jen Summers joined as Chief Shop Officer. What is her mandate?

A: Christine Barone said Jen's mandate is to serve Broistas better, prioritize shop initiatives, and support the rollout of the food program and mobile order enhancements.

Q: About the Clutch acquisition, are you actively seeking more such opportunities?

A: Hyun Jin Cho said the company views Clutch as a capital-efficient way to enter markets and will continue to look for conversion opportunities and ground-up builds.

Q: On mobile order, what incrementality are you seeing and pace of growth?

A: Christine Barone said mobile order hit 14% of transactions in Q4 2025, is popular with customers, and helps balance shop demand, with no set target but focus on customer preference.