Dutch Bros Inc. (BROS) stock fell in Thursday's premarket trading after the company lowered its full-year 2026 sales outlook.
Dutch Bros now expects annual revenue of at least $2.1 billion, down from its previous forecast of $2.1 billion to $2.13 billion. Analysts expected $2.131 billion.
However, the company reported better-than-expected third-quarter results. Adjusted earnings came in at 25 cents per share, beating Wall Street's estimate of 24 cents.
Revenue rose 30% year over year to $549.84 million, topping analysts' estimate of $547.41 million.
Strong Same-Shop Sales Growth
Company-operated same-shop sales rose 5.4%, while systemwide same-shop sales increased 4.4%.
Dutch Bros recorded its 14th straight quarter of positive same-shop sales growth and ninth consecutive quarter of customer visit growth.
Management said loyalty programs, merchandise launches and marketing efforts helped offset changes in customer demand.
The company expects systemwide same-shop sales to grow at least 5% in 2026, despite tougher comparisons and economic uncertainty.
Shop contribution margin rose 30 basis points to 28.1%.
Beverage, food and packaging costs fell 30 basis points to 25.6% of revenue. About $4 million in tariff refunds helped offset higher food program expenses.
However, management expects these costs to rise to approximately 27.5% of revenue in the fourth quarter.
Dutch Bros Targets 2,029 Shops By 2029
Dutch Bros opened 48 shops during the third quarter, bringing its total to 1,273 locations.
Management said its real estate pipeline is the strongest in company history, supporting its goal of reaching 2,029 shops by 2029.
The company expects to open at least 185 shops in 2026 and approximately 250 in 2027, mainly in existing markets.
Dutch Bros also plans to accelerate beverage innovation in 2027, with several product launches expected in the first half.
The company forecasts full-year capital expenditures of $370 million to $390 million to support its expansion plans.
BROS Price Action: Dutch Bros shares were down 14.53% at $37.60 during premarket trading on Thursday. The stock is trading near its 52-week low of $36.51, according to market data.
