Dutch Bros (BROS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 29% year-over-year to $355.2 million, driven by new shop openings and strong same shop sales growth.

• Net income rose to $22.5 million, up from $16.2 million in Q1 2024, with diluted EPS of $0.13 compared to $0.08.

• Adjusted EBITDA reached $63.8 million, a 20% increase from $53.0 million in Q1 2024.

• Shop count increased to 1,012 locations, with 695 company-operated and 317 franchised shops across 18 states.

• Dutch Rewards transactions accounted for 71.8% of total transactions, up from 66.5% year-over-year.

Financial highlights

• Company-operated shop revenue grew 31.6% year-over-year to $326.4 million.

• Company-operated shop contribution was $96.1 million, with a margin of 29.4%.

• Franchising and other revenue was $28.7 million, up 6.4% year-over-year.

• Adjusted net income for Q1 2025 was $24.8 million, compared to $16.5 million in Q1 2024.

• Systemwide AUV increased to $2,026,000 from $1,950,000 year-over-year.

Outlook and guidance

• Full-year 2025 revenue guidance: $1.555–$1.575 billion; adjusted EBITDA: $265–$275 million.

• At least 160 new system shop openings and capital expenditures of $240–$260 million anticipated for 2025.

• System same shop sales growth guidance: 2%–4% for 2025.

• Management expects continued pressure from minimum wage increases and inflation, with ongoing menu price adjustments and productivity initiatives to offset cost impacts.

• Cash flow and credit facility are expected to be sufficient to fund operations, expansion, and obligations for at least the next 12 months.