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BROS Stock Analysis - Dutch Bros Inc. AI Rating

BROS NYSE Retail-Eating & Drinking Places DE CIK: 0001866581
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
62% Confidence

📊 BROS Key Takeaways

Revenue: $1.6B
Net Margin: 4.9%
Free Cash Flow: $54.4M
Current Ratio: 1.49x
Debt/Equity: 0.30x
EPS: $0.64
AI Rating: HOLD with 62% confidence

Investment Thesis

Dutch Bros demonstrates solid revenue growth of 27.9% YoY with improving operational efficiency (9.8% operating margin) and healthy free cash flow generation of $54.4M. However, net income declined 31.9% despite revenue growth, and elevated insider transactions combined with thin 4.9% net margins and capital intensity concerns warrant a cautious stance on fundamental quality.

BROS Strengths

  • + Strong top-line growth of 27.9% YoY with $1.6B revenue demonstrates market expansion
  • + Positive free cash flow of $54.4M shows ability to fund growth and operations from cash generation
  • + Conservative leverage with 0.30x debt-to-equity ratio and strong balance sheet with $269.4M cash
  • + Operating income growth to $161.2M reflects improving operational efficiency and scale benefits

BROS Risks

  • ! Net income declined 31.9% YoY despite 27.9% revenue growth indicates deteriorating profitability quality and cost pressures
  • ! Thin net margin of 4.9% leaves limited room for operational errors and provides weak cushion against market headwinds
  • ! Capital expenditure of $241.1M against $295.5M operating cash flow suggests high capital intensity with 81.5% of OCF committed to capex
  • ! Elevated insider transactions (18 Form 4 filings in 90 days) may signal management confidence uncertainty or stock option exercises

Key Metrics to Watch

BROS Financial Metrics

Revenue
$1.6B
Net Income
$79.8M
EPS (Diluted)
$0.64
Free Cash Flow
$54.4M
Total Assets
$3.0B
Cash Position
$269.4M

💡 AI Analyst Insight

The relatively thin 3.3% FCF margin may limit capital allocation flexibility.

BROS Profitability Ratios

Gross Margin N/A
Operating Margin 9.8%
Net Margin 4.9%
ROE 11.7%
ROA 2.7%
FCF Margin 3.3%

BROS vs Consumer Sector

How Dutch Bros Inc. compares to Consumer sector averages

Net Margin
BROS 4.9%
vs
Sector Avg 8.0%
BROS Sector
ROE
BROS 11.7%
vs
Sector Avg 18.0%
BROS Sector
Current Ratio
BROS 1.5x
vs
Sector Avg 1.5x
BROS Sector
Debt/Equity
BROS 0.3x
vs
Sector Avg 0.8x
BROS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BROS Balance Sheet & Liquidity

Current Ratio
1.49x
Quick Ratio
1.28x
Debt/Equity
0.30x
Debt/Assets
70.2%
Interest Coverage
N/A
Long-term Debt
$202.5M

BROS 5-Year Financial Trend

BROS 5-year financial data: Year 2021: Revenue $497.9M, Net Income $0, EPS $-0.28. Year 2022: Revenue $739.0M, Net Income $0, EPS $-0.28. Year 2023: Revenue $965.8M, Net Income -$12.7M, EPS $-0.28. Year 2024: Revenue $1.3B, Net Income -$4.8M, EPS $-0.09. Year 2025: Revenue $1.6B, Net Income $1.7M, EPS $0.03.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Dutch Bros Inc.'s revenue has grown significantly by 229% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.03 reflects profitable operations.

BROS Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
3.3%
Free cash flow / Revenue

BROS Quarterly Performance

Quarterly financial performance data for Dutch Bros Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $338.2M $12.6M $0.11
Q2 2025 $324.9M $11.9M $0.12
Q1 2025 $275.1M $7.1M $0.08
Q3 2024 $264.5M $3.1M $0.05
Q2 2024 $249.9M -$1.1M $-0.02
Q1 2024 $197.3M -$3.8M $-0.07
Q3 2023 $198.6M $1.8M $0.03
Q2 2023 $186.4M -$906.0K $-0.02

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BROS Capital Allocation

Operating Cash Flow
$295.5M
Cash generated from operations
Capital Expenditures
$241.1M
Investment in assets
Dividends
None
No dividend program

BROS SEC Filings

Access official SEC EDGAR filings for Dutch Bros Inc. (CIK: 0001866581)

📋 Recent SEC Filings

Date Form Document Action
Mar 2, 2026 4 xslF345X05/wk-form4_1772497450.xml View →
Mar 2, 2026 4 xslF345X05/wk-form4_1772497374.xml View →
Mar 2, 2026 4 xslF345X05/wk-form4_1772497356.xml View →
Mar 2, 2026 4 xslF345X05/wk-form4_1772497338.xml View →
Mar 2, 2026 4 xslF345X05/wk-form4_1772497323.xml View →

Frequently Asked Questions about BROS

What is the AI rating for BROS?

Dutch Bros Inc. (BROS) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BROS's key strengths?

Strong top-line growth of 27.9% YoY with $1.6B revenue demonstrates market expansion. Positive free cash flow of $54.4M shows ability to fund growth and operations from cash generation.

What are the risks of investing in BROS?

Net income declined 31.9% YoY despite 27.9% revenue growth indicates deteriorating profitability quality and cost pressures. Thin net margin of 4.9% leaves limited room for operational errors and provides weak cushion against market headwinds.

What is BROS's revenue and growth?

Dutch Bros Inc. reported revenue of $1.6B.

Does BROS pay dividends?

Dutch Bros Inc. does not currently pay dividends.

Where can I find BROS SEC filings?

Official SEC filings for Dutch Bros Inc. (CIK: 0001866581) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BROS's EPS?

Dutch Bros Inc. has a diluted EPS of $0.64.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-12-31 | Powered by Claude AI