Dutch Bros sinks after soft sales outlook
BROS•Dutch Bros shares fell 21.1% to $34.69, a two-year low, after the coffee chain lowered its 2026 same-store sales growth guidance to at least 5% from 5%-6%. Third-quarter revenue rose about 30% year over year to $549.8 million, slightly beating estimates, while same-store sales increased 5.4%.
1. Shares tumble on outlook
Dutch Bros shares fell 21.1% to $34.69 on Thursday, a two-year low, after the company issued a softer-than-expected near-term sales outlook. The shares were on course for their largest one-day percentage decline since May 12, 2022, while equities broadly sold off.
2. Guidance and analyst views
The company lowered its 2026 same-store sales growth guidance to at least 5%, from 5%-6%. At least nine brokerages cut their price targets; the median target fell to $55 from $77 a month ago. TD Cowen said management made the case on the earnings call that the reduced guidance reflected cyclical factors, including high gas prices and inflation, more than structural factors such as competition.
3. Third-quarter results
Dutch Bros reported third-quarter revenue growth of about 30% year over year to $549.8 million, slightly above the $547.4 million LSEG estimate. Same-store sales rose 5.4% on increased customer visits. The stock was down 43% year to date.
