Financial Performance - Fourth quarter 2025 total revenues increased by 29.4% to $443.6 million compared to $342.8 million in the same period of 2024[6] - Net income for the fourth quarter was $29.2 million, up from $6.4 million in the same period of 2024[6] - Adjusted EBITDA rose by 48.8% to $72.6 million compared to $48.8 million in the fourth quarter of 2024[6] - For the full year 2025, total revenues reached $1.64 billion, a 27.9% increase from $1.28 billion in 2024[9] - Full year net income was $117.3 million, compared to $66.5 million in 2024[9] - Adjusted EBITDA for the year ended December 31, 2025, was $302,554, up 31.3% from $230,283 in 2024, indicating an 18.5% margin[64] - The company reported a net income before income taxes of $31.1 million for Q4 2025, significantly up from $7.5 million in Q4 2024[21] - Net income for Q4 2025 reached $29,155, a significant increase of 357.5% compared to $6,367 in the prior year[32] - Net income per diluted share for Q4 2025 was $0.17, compared to $0.03 in Q4 2024, reflecting strong earnings growth[66] Operational Growth - The company opened 55 new shops in the fourth quarter and a total of 154 new shops in 2025[6][9] - The company aims to achieve 2,029 shops by 2029, having expanded its footprint into seven contiguous states[5] - The company-operated shop count increased to 811 by the end of 2025, up from 670 at the end of 2024, marking a 20.9% growth[30] - The systemwide shop base grew to 912 from 754 year-over-year, indicating a 20.9% increase[32] - The company-operated shop base expanded to 612 from 473, reflecting a 29.4% growth[32] Revenue and Sales Metrics - System same shop sales grew by 7.7% and company-operated same shop sales increased by 9.7% year-over-year in the fourth quarter[6] - Company-operated shop revenues were $409.6 million, up 30.4% from $314.2 million in the same quarter last year[24] - The total segment contribution increased to $137.6 million, representing a 21.7% growth compared to $113.1 million in Q4 2024[21] - Systemwide same shop sales growth was 7.7% for Q4 2025, compared to 6.9% in Q4 2024[30] - The average unit volume (AUV) for company-operated shops was $2,061 for the year ended December 31, 2025, compared to $1,933 in 2024[30] Cash Flow and Assets - Net cash provided by operating activities for the year ended December 31, 2025, was $295.5 million, compared to $246.4 million in 2024, reflecting a 19.9% increase[26] - Cash and cash equivalents at the end of 2025 were $269.4 million, down from $293.4 million at the end of 2024[28] - Total assets increased to $3.0 billion as of December 31, 2025, compared to $2.5 billion in 2024, reflecting a 20.3% growth[28] Cost Management - Selling, general, and administrative expenses were $73,171, representing 16.5% of revenues, down from 21.1% in the previous year[32] - Total organization realignment and restructuring costs for the year were $8,238, down from $17,876 in 2024, indicating improved operational efficiency[65] Future Guidance - The guidance for 2026 projects total revenues between $2 billion and $2.03 billion, with same shop sales growth estimated at 3% to 5%[9] - Adjusted EBITDA for 2026 is estimated to be between $355 million and $365 million[9] - Future guidance indicates a focus on operational efficiency and strategic growth, with expectations for continued revenue increases[32]

Core Insights - Dutch Bros Inc. is expanding its consumer packaged goods (CPG) product line, making its offerings available in more stores and online, including Amazon and select grocery retailers [1][1][1] Group 1: Product Expansion - The Dutch Bros at home assortment includes signature ground coffee, ready-to-drink iced lattes, creamers, and single-serve coffee pods in popular flavors like Golden Eagle® and Annihilator® [1][1][1] - The collection is developed in partnership with Trilliant Food & Nutrition, a leading U.S. coffee manufacturer, and aims to disrupt the coffee category [1][1][1] Group 2: Community Engagement - A portion of the proceeds from the CPG products will be dedicated to the Dutch Bros Foundation®, supporting community initiatives [1][1][1] Group 3: Market Presence - Dutch Bros operates 1,081 locations across 24 states as of September 30, 2025, focusing on high-quality, hand-crafted beverages and a unique drive-thru experience [1][1][1]

Core Insights - Dutch Bros Inc. is set to release its fourth-quarter 2025 results on February 12, with a strong history of earnings surprises, averaging a 91.9% surprise over the last four quarters [2]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is 10 cents, reflecting a 42.9% increase from 7 cents in the same quarter last year [3]. - The consensus estimate for fourth-quarter revenues is $426.8 million, indicating a 24.5% growth compared to the previous year's figure [3]. Revenue Drivers - Revenue growth in Q4 2025 is expected to be supported by sustained same-shop sales growth, operational improvements, and strong traffic trends [4]. - Increased engagement through digital channels and the loyalty program has contributed to revenue, with Order Ahead adoption rising, particularly in newer markets [5]. - Menu innovation and the expansion of the hot food program are anticipated to provide additional revenue boosts, with successful seasonal offerings driving traffic [6]. Revenue Breakdown - Revenues from company-operated shops are projected at $397 million, up from $314 million in the prior-year quarter, while franchising and other revenues are expected to reach $30.5 million compared to $28.6 million last year [7]. Profitability Factors - The bottom-line performance is likely to benefit from operating leverage due to higher sales volumes and disciplined expense management, despite pressures from elevated coffee costs and expenses related to food rollout [8]. - Improved labor efficiency and SG&A leverage from scale are expected to support profitability, allowing for adjusted earnings growth while continuing investments in new shops and long-term initiatives [8]. Earnings Outlook - The model does not predict an earnings beat for Dutch Bros this time, with an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [9][10].

Core Viewpoint - Analysts project that Dutch Bros (BROS) will report quarterly earnings of $0.10 per share, reflecting a year-over-year increase of 42.9% and revenues of $426.77 million, up 24.5% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 7.7% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Franchising and other' to reach $30.46 million, a 6.5% increase from the previous year [5]. - 'Revenues- Company-operated shops' are projected to be $396.52 million, reflecting a 26.2% increase from the prior-year quarter [5]. Shop Count Estimates - The total shop count is estimated to be 1,142, up from 982 in the same quarter last year [6]. - Franchised shop count is expected to reach 331, compared to 312 a year ago [6]. - Company-operated shop count is projected at 812, an increase from 670 in the same quarter last year [7]. Sales and Transactions Forecast - System same shop sales and transactions are expected to be 4.6%, down from 6.9% in the previous year [7]. - Company-operated same shop sales and transactions are forecasted to be 5.3%, compared to 9.5% a year ago [8]. New Shop Openings - Total net new shop openings are estimated at 62, up from 32 in the previous year [8]. - Company-operated new openings are projected to be 54, compared to 25 a year ago [8]. - Franchised new openings are expected to be 8, slightly up from 7 in the same quarter last year [9]. Stock Performance - Over the past month, Dutch Bros shares have declined by 8.6%, while the Zacks S&P 500 composite has changed by -0.2% [9].

Core Insights - Starbucks holds a $110 billion market cap and reported revenue of $9.9 billion in Q1 of fiscal 2026, but its shares are trading 23% below their peak as of February 4 [1] - Dutch Bros is emerging as a strong competitor, generating nearly 75% of its revenue after 10 a.m., unlike leading chains that see half of their sales during that time [5][6] - Dutch Bros has achieved 12 consecutive quarters of same-store sales growth, contrasting with Starbucks' six straight quarters of declines prior to a recent growth report [8] Company Performance - Starbucks' same-store sales are projected to rise by 3% in fiscal 2026, indicating a potential recovery [9] - Dutch Bros aims for an average annual unit volume of $1.8 million, supported by its unique sales distribution throughout the day [6] Expansion Potential - Dutch Bros has a market cap of $9 billion and had 1,081 locations as of September 30, 2025, indicating significant room for growth [10] - The company believes there is potential for 7,000 stores in the U.S., particularly in the eastern and northern regions, which could lead to substantial revenue and earnings growth [11]

Core Viewpoint - The comparison between Compass Group PLC (CMPGY) and Dutch Bros (BROS) indicates that CMPGY presents a better value opportunity for investors at this time due to its stronger earnings outlook and more attractive valuation metrics [1][3][7]. Valuation Metrics - CMPGY has a forward P/E ratio of 19.80, significantly lower than BROS's forward P/E of 61.16, suggesting that CMPGY is more reasonably priced relative to its earnings [5]. - The PEG ratio for CMPGY is 1.73, while BROS has a PEG ratio of 1.98, indicating that CMPGY's expected earnings growth is more favorable compared to its price [5]. - CMPGY's P/B ratio stands at 6.41, compared to BROS's P/B of 9.97, further highlighting CMPGY's relative undervaluation [6]. Investment Ratings - CMPGY holds a Zacks Rank of 2 (Buy), indicating a positive outlook, while BROS has a Zacks Rank of 4 (Sell), suggesting a less favorable investment position [3][7]. - The Value grade for CMPGY is B, reflecting its strong valuation metrics, whereas BROS has a Value grade of F, indicating poor valuation [6].

Core Viewpoint - Dutch Bros (BROS) has experienced a significant decline in stock performance recently, with a return of -16.9% over the past month, contrasting with the S&P 500's -1.5% and the Zacks Retail - Restaurants industry's gain of 8.6% [2] Earnings Estimates - Dutch Bros is projected to report earnings of $0.10 per share for the current quarter, reflecting a year-over-year increase of +42.9%, although the Zacks Consensus Estimate has decreased by -7.7% over the last 30 days [5] - The consensus earnings estimate for the current fiscal year stands at $0.68, indicating a year-over-year change of +38.8%, with a slight decrease of -1.9% in the estimate over the past month [5] - For the next fiscal year, the consensus earnings estimate is $0.86, representing a +26.5% change from the previous year, with a -2.3% adjustment in the estimate over the last month [6] Revenue Growth - The consensus sales estimate for the current quarter is $426.47 million, indicating a year-over-year increase of +24.4% [11] - For the current fiscal year, the revenue estimate is $1.62 billion, reflecting a +26.5% change, while the next fiscal year's estimate is $2.03 billion, indicating a +25.2% change [11] Recent Performance - In the last reported quarter, Dutch Bros achieved revenues of $423.58 million, a year-over-year increase of +25.2%, and an EPS of $0.19 compared to $0.16 a year ago [12] - The company exceeded the Zacks Consensus Estimate for revenues by +3.03% and for EPS by +11.76% [12] - Dutch Bros has consistently beaten consensus EPS and revenue estimates in the last four quarters [13] Valuation - Dutch Bros is currently graded F in the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [17] - The assessment of valuation multiples such as P/E, P/S, and P/CF is crucial for determining whether the stock is overvalued, fairly valued, or undervalued [15]

Group 1 - Dutch Bros Inc. is projected to double by 2030, with Morgan Stanley lowering its price target to $82 from $84 while maintaining an Overweight rating [1] - TD Cowen approved Dutch Bros' acquisition of Clutch Coffee, enhancing its presence in the Southeast and accelerating regional expansion, with a Buy rating and a price target of $73 [2] - Barclays raised the price target for Dutch Bros to $76 from $72, maintaining an Overweight rating, while noting ongoing sales difficulties in the industry [3] Group 2 - Dutch Bros operates and franchises drive-thru coffee shops in the US through various segments including Company-Operated Shops and Franchising [4]

Core Insights - Dutch Bros stock experienced an 11% decline in January, attributed to market concerns regarding U.S. consumer strength, despite no specific news affecting the company [1] Company Overview - Dutch Bros operates a unique model focused on speed, service, and a fun environment, primarily through drive-thru locations, with staff engaging customers directly to enhance service [2] - The company has expanded significantly from around 500 stores at its IPO to over 1,000 today, aiming to reach 2,029 stores by 2029 and ultimately 7,000 nationwide [3] Financial Performance - Sales increased by 25% year over year in Q3 2025, with comparable sales up 5.7% and transactions increasing by 4.7%. Net income for the quarter was $27.3 million, up from $21.7 million the previous year [4] Growth Strategy - Dutch Bros is in a growth phase, focusing on new store openings, a robust membership program, and mobile ordering, while also developing an efficient real estate strategy [5] Market Concerns - Despite strong performance, there are concerns about future growth in 2026 due to high inflation and the perception of custom coffee as a luxury item. However, the company’s pricing is competitive [6] - The stock is considered expensive, trading at a P/E ratio of 123, which raises questions about sustaining such a high valuation without corresponding growth [7] Future Outlook - The company is expected to continue strong performance and revenue growth through its expansion plans, making it a potential success for shareholders, particularly for long-term growth investors [8]

Core Insights - Immersion Investment Partners achieved a net return of 4.9% in Q4 2025, outperforming the Russell 2000 Index's return of 2.2% and the Russell Microcap Index's gain of 6.3% [1] - The yearly return for Immersion Investment Partners was 45.4%, significantly higher than the Russell 2000 Index's 12.8% and the Russell Microcap Index's 23.0% [1] - The firm expressed concerns about energy demands and unclear monetization paths in the context of massive investments in AI, indicating potential investment opportunities for companies with innovative business models [1] Company Focus: Dutch Bros Inc. - Dutch Bros Inc. (NYSE:BROS) is highlighted as a top holding for Immersion Investment Partners, with a market capitalization of $8.804 billion [2] - The stock closed at $53.49 per share on February 3, 2026, but has seen a decline of -15.38% in the past month and -18.58% over the past twelve months [2] - Immersion Investment Partners views Dutch Bros as a compelling restaurant asset with favorable long-term trends, comparing it to successful brands like Wingstop and Domino's, while noting its early growth stage and cult-like following similar to Chick-fil-A and In-N-Out Burgers [3]