Dutch Bros to Report Q2 Earnings: What's in Store for the Stock?

Dutch Bros Inc. BROS is scheduled to report second-quarter 2025 results on Aug. 6, after market close. In the last reported quarter, the company delivered an earnings surprise of 40%.
    
BROS’ earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 92.4%.

Trend in Estimate Revision of BROS

The consensus estimate for second-quarter earnings is pegged at 18 cents per share, implying a 5.3% decrease from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 60 days.

Dutch Bros Inc. Price and EPS Surprise

 

Dutch Bros Inc. price-eps-surprise | Dutch Bros Inc. Quote

The Zacks Consensus Estimate for revenues is pegged at $401.9 million, indicating a rise of 23.7% from the year-ago reported figure.

Factors Likely to Shape Dutch Bros’ Quarterly Results

Dutch Bros' second-quarter revenues are expected to have increased year over year, driven by strong system same shop sales and transactions growth. The company is likely to have benefited from enhanced new shop productivity, menu innovation and continued investment in real estate capability and paid media. Furthermore, loyalty program usage is expected to have remained high, supporting overall traffic and engagement in the to-be-reported quarter.

The company expects system same shop sales growth of 3% to 4% in the second quarter. It expects to open around 30 shops in the to-be-reported quarter.

The Zacks Consensus Estimate for second-quarter revenues from company-operated shops (which accounted for 92% of total first-quarter revenues) is pegged at $368 million, up from $295 million reported in the prior-year quarter. The Zacks Consensus Estimate for second-quarter revenues from franchising and other segment (accounted for 8% of total first-quarter revenues) is pegged at $32.5 million, up from $29.7 million reported in the prior-year quarter.

However, a tough macro landscape, including inflationary pressures, remains a concern. The company is prone to economic conditions, including commodity inflation, elevated labor costs and supply-chain disruptions. Dutch Bros has been making higher investments in shop labor and toward business-building activities. These limitations are likely to have weighed on the company’s profitability in the quarter under review.

What the Zacks Model Unveils

Our proven model conclusively predicts an earnings beat for Dutch Bros this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.

BROS’ Earnings ESP: Dutch Bros has an Earnings ESP of +1.62%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

BROS’ Rank: The company currently has a Zacks Rank #3.

Other Stocks With the Favorable Combination

Here are some other stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these, too, have the right combination of elements to deliver an earnings beat this time around.

Yum! Brands, Inc. YUM currently has an Earnings ESP of +1.34 and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Yum! Brands’ earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 0.53%. For the second quarter of 2025, Yum! Brands’ earnings are expected to increase 7.4%. 

Brinker International EAT presently has an Earnings ESP of +0.93 and a Zacks Rank of 3.

With the average surprise of 24.52%, Brinker’s earnings beat estimates in three of the trailing four quarters and missed once. Brinker’s earnings for the second quarter of 2025 are expected to increase 51%

McDonald's MCD currently has an Earnings ESP of +0.43 and a Zacks Rank of 3.

With the average negative surprise of 0.22%, McDonald's earnings beat estimates in three of the trailing four quarters and missed once. McDonald's earnings for the second quarter of 2025 are expected to increase 6.1%.

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This article originally published on Zacks Investment Research (zacks.com).

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