The Q3 guidance implies deceleration. Are there other dynamics like gas prices or Starbucks competition impacting this?

The primary drivers for the implied deceleration are the transaction lapse starting to step up, and the rolling off of pricing and the food program rollover. Management remains confident in their position for Q3 and the balance of the year. “I'd really point you towards the primary driver being that transaction lapse starting to step up here and then what we're rolling off both in terms of pricing and the rollover of the start of our food program.”

Why is the gap between company and franchise comps widening, and is there an opportunity to accelerate comps in acquired franchise businesses?

The spread is primarily driven by strong comp tailwinds from newer shop vintages, with company-operated growth outpacing franchise. The food program rollout, completed in company shops, will start in franchise shops next quarter, contributing to the spread. “As we shared in the past, one of the biggest drivers of the spread between company and franchise is really that we see strong comp tailwinds coming from the newer vintages of shops and our growth is more heavily weighted towards the company-operated side.”

How is the company raising awareness for the food offering, and are sales mix continuing to build as awareness grows?

Food attach rates pop up quickly upon launch. The focus is on executing the program well and addressing customer demand for breakfast items. There's a long-term opportunity to grow awareness, add new platforms, and use seasonal offerings to drive traffic, especially in new markets. “So as we look at the food platform, our teams are really excited about the platform. So we actually see really from the very beginning of launch of food that we see that pop up in food attach very, very quickly within our shops.”

BROS

Dutch Bros (BROS) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 5, 2026

Source: earnings call transcript

Executive summary

Dutch Bros Q2 FY26 — Strong Comp Sales and Raised Full-Year Guidance

Dutch Bros delivered its eighth consecutive quarter of transaction growth and strong comp sales, driven by strategic investments in real estate, innovation, and digital engagement. The successful rollout of the food program and the new Myst Energy Refreshers platform contributed to robust performance, leading to raised full-year guidance despite some cost pressures. Management remains confident in its long-term growth trajectory and unit expansion goals.

Highlights

Total revenues increased an outstanding 32% to $551 million.
Adjusted EBITDA was up 28% to $114 million.
Company-operated same-shop sales grew an impressive 8.3% with 3.4% transaction growth.
Opened 48 new system shops, reinforcing confidence in the pipeline to reach 2,029 shops by 2029.
Dutch Rewards penetration reached over 73% of transactions, delivering its strongest contribution to comp sales.

Concerns

Beverage, food, and packaging costs were 26.1% of company-operated shop revenue, up 80 basis points year-over-year, primarily due to higher coffee costs and the food program rollout.
Occupancy and other costs were 16.3% of company-operated shop revenue, up 50 basis points year-over-year, driven by higher rent on new build-to-suit leases.
Preopening expenses were 1.6% of company-operated shop revenue, up 40 basis points year-over-year, primarily due to an increased number of shop openings.
Full-year 2026 guidance contemplates approximately 20 basis points of year-over-year net adjusted EBITDA margin pressure.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Total Revenues	$2.1B-$2.13B high materiality	FY26	High
Full-year 2026 Total Revenue Growth	28%-30% high materiality	FY26	High
Full-year 2026 System Same Shop Sales Growth	5%-6% high materiality	FY26	High
Q3 2026 System Same Shop Sales Growth	4%-5% medium materiality	Q3 · FY26	High
Full-year 2026 Adjusted EBITDA	$385M-$390M high materiality	FY26	High
Full-year 2026 Net Adjusted EBITDA Margin Pressure	~20 bps medium materiality	FY26	High
Full-year 2026 Capital Expenditures	$350M-$370M high materiality	FY26	High
Full-year 2026 System Shop Openings	at least 185 high materiality	FY26	High
Full-year 2026 Total COGS Pressure	~60 bps medium materiality	FY26	High
Full-year 2026 Occupancy Costs Impact	~50 bps medium materiality	FY26	High
Full-year 2026 Adjusted SG&A Leverage	~90 bps medium materiality	FY26	High
Q3 2026 Adjusted SG&A	$73M-$74M medium materiality	Q3 · FY26	High
Long-term Shop Count Target	2,029 shops high materiality	FY29	High
Long-term Build-to-Suit Lease Mix	60% low materiality	Long-term	High

Product announcements

Product	Type	Timeline	Details
Myst Energy Refreshers	launch	May 2026
Food Program	milestone	End of Q2 FY26

Deals & partnerships

Phoenix East Valley franchise partner Acquisition of franchise rights and assets for 31 locations (including one under development) in the Phoenix market. $63.5M

The acquisition followed the retirement of a franchise partner who had been with Dutch Bros for nearly 20 years. The locations were seamlessly converted to company-operated shops.

Salad and Go Agreement to acquire the real estate and related site assets of up to 65 Salad and Go locations.

The sites are comparable in size to Dutch Bros shops, leading to easier conversion. This acquisition is seen as an opportunity to secure fantastic real estate in growth markets.

Risks & headwinds

Higher coffee costs Q2 FY26, H2 FY26, FY26

80 bps impact on beverage, food, and packaging costs in Q2; expected to continue in H2 FY26; ~60 bps total COGS pressure for FY26.

Mitigation:Partially offset by leverage on adjusted SG&A.

Increased occupancy costs Q2 FY26, FY26

50 bps impact on company-operated shop revenue in Q2; expected ~50 bps for FY26.

Mitigation:Partially offset by leverage on adjusted SG&A; driven by shift to build-to-suit leases.

Preopening expenses Q2 FY26

40 bps impact on company-operated shop revenue in Q2.

Net adjusted EBITDA margin pressure FY26

~20 bps year-over-year for FY26 (midpoint of guidance).

Mitigation:Reflecting the impact of higher coffee costs and increased occupancy costs, partially offset by leverage on adjusted SG&A.

What to watch in Q3 FY26

System Same Shop Sales Growth (Q3)

Q3 FY26

Current 5.8% (Q2 FY26)

Target 4%-5%

Why it matters

Indicates continued sales momentum and the impact of transaction comparison step-up, pricing roll-off, and food program laps.

Our updated full year comp guidance contemplates system same-shop sales growth of approximately 4% to 5% in Q3, reflecting stronger transaction comparisons and the impact of effective pricing stepping down sequentially.

Find out whether BROS delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you provide more color on the back-half comp outlook, considering key initiatives, macro backdrop, and competition?

The back-half comp guidance reflects a step-up in transaction comparisons, rolling off net pricing, and the lap of the food program rollout from Q3/Q4 last year. Management feels well-positioned to outperform the industry with current initiatives.

“As we think about our guide for the full year of the midpoint of the 5% to 6% range, that really does reflect the continued step-up in transaction comparisons. So we see that step up in Q3 and Q4. We also are rolling off net pricing as we head into Q3.”

asked by Dennis Geiger · answered by Joshua Guenser

2 min read 6 chapters

Detailed narrative

Strategic Growth Pillars and Performance

Dutch Bros' continued success is underpinned by its differentiated people-led culture, expanding customer occasions through innovation, and a robust real estate development engine. This strategy has resulted in the eighth consecutive quarter of transaction growth and strong comp sales, compounding year-over-year.

The company's performance in Q2, with total revenues up 32% and adjusted EBITDA up 28%, validates its foundational investments and execution, providing confidence in its long-term growth trajectory.

New Market Expansion and Brand Portability

The company is demonstrating strong momentum in new market entries, reinforcing the portability of the Dutch Bros brand. The Melrose Park shop in the Greater Chicagoland area, for example, is pacing to a volume of approximately $7 million and set a new company record for opening day demand.

Other new markets like Atlanta, Charlotte, and Tampa are also annualizing meaningfully above expectations, showcasing the brand's ability to resonate across diverse geographies, including the recent entry into Mississippi.

Innovation Driving Customer Engagement and Sales

Innovation across the menu and customer experience is strengthening routines and driving frequency. The food program rollout was completed across approximately 750 system shops ahead of schedule, enhancing morning daypart occasions. Additionally, the new Myst Energy Refreshers, a plant-powered energy drink platform, was introduced and has been made a permanent menu item due to overwhelmingly positive customer response, increasing the overall energy mix and driving LTO unit velocity.

Digital Ecosystem and CPG Growth

Dutch Bros' digital ecosystem continues to deepen customer engagement, with over 73% of transactions flowing through Dutch Rewards, reflecting continued adoption and its strongest contribution to comp sales since the segmentation journey began. Order Ahead reached approximately 16% of the total transaction mix, improving convenience. The CPG business is also expanding the brand's reach, generating above-category average velocity in all formats.

Operational Discipline and Throughput Improvements

Maintaining strong operational discipline is a key priority, supported by the launch of the Vibe Check scorecard, which provides leaders with greater visibility into shop-level performance across people, customer, and business metrics. The company is also focused on improving throughput through better labor deployment, matching staffing to demand by day and daypart, and longer-term initiatives like optimizing shop layout and equipment to balance demand from drive-thru and walk-up windows.

Strategic Real Estate Acquisitions

Dutch Bros completed the acquisition of franchise rights and assets for 31 locations in the Phoenix market for $63.5 million, which is expected to contribute $25 million in incremental revenue and $5 million in adjusted EBITDA for the remainder of 2026.

Furthermore, the company entered an agreement to acquire real estate and site assets of up to 65 Salad and Go locations in Arizona, Nevada, Oklahoma, and Texas, enhancing its development pipeline for conversions expected in 2027.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.