Coffee chain Dutch Bros (NYSE: BROS) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 28% year on year to $415.8 million. The company’s full-year revenue guidance of $1.60 billion at the midpoint came in 0.6% above analysts’ estimates. Its non-GAAP profit of $0.26 per share was 46.6% above analysts’ consensus estimates.

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Company Overview

Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $1.45 billion in revenue over the past 12 months, Dutch Bros is a mid-sized restaurant chain, which sometimes brings disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base.

As you can see below, Dutch Bros grew its sales at an incredible 37.7% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as it opened new restaurants and increased sales at existing, established dining locations.

This quarter, Dutch Bros reported robust year-on-year revenue growth of 28%, and its $415.8 million of revenue topped Wall Street estimates by 3.1%.

Looking ahead, sell-side analysts expect revenue to grow 22.3% over the next 12 months, a deceleration versus the last six years. Despite the slowdown, this projection is admirable and implies the market is forecasting success for its menu offerings.

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Restaurant Performance

Number of Restaurants

A restaurant chain’s total number of dining locations influences how much it can sell and how quickly revenue can grow.

Dutch Bros operated 1,043 locations in the latest quarter. It has opened new restaurants at a rapid clip over the last two years, averaging 19.8% annual growth, much faster than the broader restaurant sector. This gives it a chance to become a large, scaled business over time.

When a chain opens new restaurants, it usually means it’s investing for growth because there’s healthy demand for its meals and there are markets where its concepts have few or no locations.

Same-Store Sales

A company's restaurant base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it’s prudent to close some locations and use the money in other ways. Same-store sales is an industry measure of whether revenue is growing at those existing restaurants and is driven by customer visits (often called traffic) and the average spending per customer (ticket).

Dutch Bros has been one of the most successful restaurant chains over the last two years thanks to skyrocketing demand within its existing dining locations. On average, the company has posted exceptional year-on-year same-store sales growth of 5.4%. This performance along with its meaningful buildout of new restaurants suggest it’s playing some aggressive offense.

In the latest quarter, Dutch Bros’s same-store sales rose 6.1% year on year. This performance was more or less in line with its historical levels.

Key Takeaways from Dutch Bros’s Q2 Results

This was a beat and raise quarter. We were impressed by how significantly Dutch Bros blew past analysts’ EBITDA expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Looking ahead, full-year revenue guidance was raised, and full-year EBITDA guided beat expectations. Zooming out, we think this quarter featured some important positives. The stock traded up 15.7% to $66.88 immediately after reporting.

Dutch Bros put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.