Executive Summary

Dutch Bros delivered a strong Q1 2025: revenue grew 29% year over year to $355.2M, system same shop sales (SSS) rose 4.7% with positive transactions, and adjusted EBITDA was $62.9M .
Management reiterated FY2025 guidance and said total revenues, SSS growth, and adjusted EBITDA are “trending towards the top half” of prior ranges ($1.555–$1.575B revenue; 2–4% SSS; $265–$275M adjusted EBITDA) .
Key operational drivers: mobile order penetration increased to ~11% of transactions, strengthening the morning daypart and throughput; Dutch Rewards reached ~72% of transactions; paid advertising and innovation supported new shop productivity (30 openings in Q1) .
Cost headwinds: elevated coffee prices and import tariffs (10% for certain origins) are expected to drive ~110 bps company shop COGS margin pressure for FY2025; company believes exposure is limited (<10% of COGS sourced internationally) and prices are largely locked for the year .
Near-term catalysts: bias to upper-end FY guidance, continued transaction momentum into Q2, mobile order and throughput initiatives scaling, and early food test expansion (8→32 shops) for 2026 rollout potential .

What Went Well and What Went Wrong

What Went Well

Revenue and comp strength: Revenue +29% YoY to $355.2M; system SSS +4.7% with +1.3% transactions; company-operated SSS +6.9% with +3.7% transactions .
Mobile order adoption driving morning daypart and throughput: order ahead reached ~11% of transactions and over-indexed in mornings; walk-up window utilization supports production balance .
New shop productivity and unit growth: 30 openings in Q1 with some of the best openings ever; confidence in at least 160 system openings in 2025 and a robust pipeline .

Management quotes:

“We delivered exceptional results in the first quarter… 29% revenue growth and system same shop sales growth of 4.7%, which includes positive transaction growth” — CEO Christine Barone .
“Given the strong performance… total revenues, same shop sales growth and adjusted EBITDA are trending towards the top half of the ranges we provided last quarter” — CFO Josh Guenser .

What Went Wrong

Margin pressure from coffee and tariffs: beverage, food & packaging expected ~27% of company shop revenue in Q2; FY ~110 bps net COGS margin headwind from coffee (now inclusive of tariffs) .
Labor deleverage: labor costs at 27.4% of company-operated revenue in Q1 (+100 bps YoY), with shop leadership investments offsetting leverage for the remainder of the year .
Contribution margin slightly lower YoY: company-operated shop contribution margin was 29.4% in Q1, down 40 bps YoY (including 170 bps pre-opening costs) .

Financial Results

Income Statement and Profitability Progression

Metric	Q3 2024	Q4 2024	Q1 2025
Total Revenues ($USD Millions)	$338.2	$342.8	$355.2
GAAP Diluted EPS ($)	$0.11	$0.03	$0.13
Adjusted EPS (Fully Exchanged Diluted) ($)	$0.16	$0.07	$0.14
Adjusted EBITDA ($USD Millions)	$63.8	$48.8	$62.9
Adjusted EBITDA Margin (%)	18.9%	14.2%	17.7%

Same Shop Sales and Transactions

Metric	Q3 2024	Q4 2024	Q1 2025
System SSS YoY (%)	2.7%	6.9%	4.7%
System Ticket YoY (%)	1.9%	4.6%	3.4%
System Transactions YoY (%)	0.8%	2.3%	1.3%
Company-Operated SSS YoY (%)	4.0%	9.5%	6.9%
Company-Operated Ticket YoY (%)	1.6%	4.3%	3.2%
Company-Operated Transactions YoY (%)	2.4%	5.2%	3.7%

Segment Breakdown (Q1 2025)

Metric	Company-Operated Shops	Franchising & Other	Total
Revenues ($USD Thousands)	$326,421	$28,731	$355,152
Beverage, Food & Packaging ($USD Thousands)	$81,379	—	—
Labor Costs ($USD Thousands)	$89,439	—	—
Occupancy & Other ($USD Thousands)	$53,927	—	—
Pre-opening Costs ($USD Thousands)	$5,611	—	—
Franchising & Other COGS ($USD Thousands)	—	$8,775	—
Segment Contribution ($USD Thousands)	$96,065	$19,956	$116,021

KPIs (Q1 2025)

KPI	Value
Total Shops (End of Period)	1,012
Company-Operated / Franchised Shop Count	695 / 317
Systemwide AUV ($)	$2,026
Company-Operated AUV ($)	$1,950
Dutch Rewards Transactions (% of Total)	71.8%
Systemwide Sales ($USD Thousands)	$489,672
Company-Operated Operating Weeks	8,737
Cash & Cash Equivalents ($USD Thousands)	$316,441

Guidance Changes

Metric	Period	Previous Guidance (Q4 2024)	Current Guidance (Q1 2025)	Change
Total Revenues ($B)	FY 2025	$1.555–$1.575	$1.555–$1.575	Maintained; trending to top half
System Same Shop Sales Growth (%)	FY 2025	2–4	2–4	Maintained; trending to top half
Adjusted EBITDA ($M)	FY 2025	$265–$275	$265–$275	Maintained; trending to top half
System Shop Openings (Count)	FY 2025	≥160	≥160	Maintained
Capital Expenditures ($M)	FY 2025	$240–$260	$240–$260	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 & Q4 2024)	Current Period (Q1 2025)	Trend
Mobile order & morning daypart	Rollout ~90% system; ~7% mix; +5% frequency; morning over-index	~11% mix; higher adoption in new markets; strengthens mornings and throughput	Scaling up
Throughput initiatives	Early stage; deployment focus; mobile order aids throughput	Dashboards, bottleneck identification, flexible deployment; pilot showing promising results	Operationalizing
Paid advertising	Upsized spend driving awareness; new + mature markets	Continued elevated spend; effective ROI; supports outsized new shop vintages	Sustained investment
Dutch Rewards	~71% of transactions in Q4; segmentation improving	~72% of transactions; boosts frequency and mobile adoption	Increasing penetration
Food program	Limited test (6–8 shops) early signs encouraging	Expanded to 32 shops; targeting incremental beverage occasions; 2026 broader rollout anticipated	Broader test
Coffee costs & tariffs	FY2025 COGS pressure expected (~110 bps)	Exposure limited (<10% COGS international); tariffs now included; pricing largely locked	Headwind quantified
Real estate & pipeline	Strong new shop productivity; 38 openings Q3; 32 openings Q4	30 openings Q1; pipeline supports ≥160 openings in 2025; CDO hire	Consistent growth
Regional trends	Texas maturation aiding comps; strong CA volumes	Florida early success; top openings in Q1	New market traction
CPG entry	—	Retail packaged coffee via licensing; brand awareness and philanthropy	New channel

Management Commentary

“We have a clear roadmap ahead of us and are well-positioned to continue generating sustainable long-term growth.” — CEO Christine Barone .
“We now substantially locked in coffee prices for the remainder of 2025… expect approximately 110 bps of net COGS margin pressure for the full year, now inclusive of tariffs.” — CFO Josh Guenser .
“Order ahead accounted for approximately 11% of transaction mix, representing a 3-point improvement versus Q4… over-indexing in the morning daypart.” — CEO Christine Barone .
“We attribute approximately 72% of system transactions to our loyalty program… a 5-point improvement versus the same period last year.” — CEO Christine Barone .
“We successfully opened 30 shops and anticipate maintaining this pace next quarter with plans to accelerate in the second half.” — CEO Christine Barone .

Q&A Highlights

Q2 comp trajectory: Management expects Q2 system SSS of 3–4%, acknowledging ~150 bps price roll-off, with traffic trends continuing into Q2 .
Mobile order incrementality: Frequency lifts for adopters; faster Rewards sign-ups; morning skew; walk-up window production benefits .
Coffee/tariff headwinds: Exposure <10% of COGS; prices locked slightly below ~$4/lb benchmark, absorbing estimated tariff impact within guidance; ~110 bps FY company shop COGS margin pressure .
Labor: Shop leadership investments in April to offset sales leverage; labor at 27.4% of company-operated revenue in Q1 .
Food program scope: Expanded test to 32 shops; limited SKU approach for throughput; margin lower than beverage but favorable fixed-cost absorption and beverage attach .

Estimates Context

Metric	Consensus (Q1 2025)	Actual (Q1 2025)	Surprise
Revenue ($USD Millions)	$343.9*	$355.2	+$11.3
Primary EPS ($)	$0.105*	$0.14 (Adjusted fully exchanged diluted)	+$0.035
EBITDA ($USD Millions)	$57.1*	$62.9 (Adjusted)	+$5.8
# of Estimates (Revenue / EPS)	11 / 12*	—	—

Values marked with * retrieved from S&P Global.

Implications: Broad beats on revenue, adjusted EPS, and adjusted EBITDA suggest upward pressure on FY models, particularly on top-line and profitability cadence. Management’s “top-half” bias to FY guidance corroborates potential estimate revisions toward upper ends on revenue and adjusted EBITDA .

Key Takeaways for Investors

Top-line momentum is durable: multi-quarter SSS transaction growth, strong new shop productivity, and elevated paid media underpinning comps and unit growth .
Operational levers (mobile order, throughput) are scaling and driving morning daypart share, with visible benefits to frequency and production balancing .
Coffee/tariff headwinds are managed within guidance; pricing largely locked, limited international COGS exposure, and SG&A leverage offsets support margins .
FY 2025 guide bias to upper end for revenue and adjusted EBITDA increases probability of estimate upward revisions; watch Q2 comps and margin cadence .
Food test expansion (2025) positions for a 2026 broader rollout aimed at incremental beverage occasions, with limited operational complexity .
Balance sheet/liquidity strong (~$316M cash, ~$658M total liquidity at Q1 end), supporting ≥160 openings in 2025 and capital-efficient build-to-suit shift .
Medium-term thesis: sustained mid-teens unit growth, low-single-digit SSS, adjusted EBITDA growth exceeding revenue growth, and company-operated shop contribution ~30% goal (Investor Day) .

Dutch Bros Inc. (BROS)·Q1 2025 Earnings Summary