Dutch Bros Inc. shares experienced a significant after-hours rally on Thursday, climbing 12.3% to $57.07. This surge reversed a 5.0% decline from the regular session close at $50.82, driven by the company's release of fourth-quarter financial results that exceeded analyst expectations.
Earnings and Revenue Beat
The drive-thru coffee chain reported quarterly revenue of $443.6 million, a 29% year-over-year increase. A key metric, same-shop sales, grew by 7.7%. Adjusted earnings came in at $0.17 per share, notably higher than the consensus estimate of $0.09 per share.
Ambitious 2026 Outlook
Management provided a detailed forecast for fiscal year 2026, projecting revenue in the range of $2.0 billion to $2.03 billion. The company plans to open at least 181 new locations that year and anticipates same-shop sales growth between 3% and 5%. Adjusted EBITDA is forecasted to be between $355 million and $365 million.
CEO Christine Barone expressed confidence in the company's strategic direction, while CFO Josh Guenser highlighted strong belief in the long-term target of 2,029 shops by 2029. The company ended 2025 with 1,136 shops across 25 states.
Investor Focus Shifts to Execution
While the quarterly beat provided a positive catalyst, investor attention is now centered on the company's ability to execute its aggressive expansion plan. Key concerns include managing volatile coffee commodity costs, labor expenses, and maintaining healthy margins as new stores open. The projected 2026 same-shop sales growth, while positive, represents a moderation from the robust 7.7% pace seen in Q4.
The after-hours gain sets the stage for a pivotal regular trading session on Friday, where the market will fully digest the guidance against current valuations and broader sector trends.