Dutch Bros Stock Plunges on Slowing Sales

Dutch Bros Inc. (NYSE:BROS) experienced a significant stock decline of 19% in after-hours trading on Wednesday. This drop followed the coffee chain's release of third-quarter financial results, which revealed a slowdown in same-shop sales growth.

The company reported adjusted earnings per share of $0.25, surpassing analyst expectations of $0.24. Revenue for the quarter reached $549.8 million, a 29.8% year-over-year increase and slightly exceeding the consensus estimate.

Despite the positive earnings and revenue figures, company-operated same-shop sales saw a modest increase of 5.4%, with systemwide sales up 4.4%. This marks a noticeable deceleration compared to previous quarters.

In response to these trends, Dutch Bros revised its full-year adjusted EBITDA outlook downward to approximately $380 million, a reduction from its prior guidance of $385 million to $390 million. Concurrently, capital expenditure guidance was raised to a range of $370 million to $390 million.

Looking ahead, Dutch Bros announced an ambitious plan to accelerate its expansion, targeting approximately 250 new locations in 2027, an increase from its previous pace. The company reaffirmed its 2026 guidance, which includes at least 185 total system shop openings and a same-shop sales growth of at least 5%.

The company also reported net income of $37.2 million for the quarter, an improvement from $27.3 million in the same period last year. Dutch Bros completed the reacquisition of 32 franchise locations in Phoenix's East Valley on July 27, 2026, and opened 48 new shops in the third quarter, bringing its total count to 1,273.