Why Dutch Bros Stock Skyrocketed on Thursday

Key Points

• Dutch Bros delivered a classic beat-and-raise quarter.

• The company is faring far better than its largest competition.

• The stock is expensive, but worthy of a premium.

• 10 stocks we like better than Dutch Bros ›

Shares of Dutch Bros (NYSE: BROS) roared out of the gate on Thursday, spiking as much as 24.2%. As of 11:37 a.m. ET, the stock was still up 18.5%.

The catalyst that sent the stock soaring today was its most recent financial report, as the company delivered a classic beat-and-raise quarter.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

Served up piping hot

For the second quarter, Dutch Bros generated revenue of $416 million, up 28% year over year. This fueled robust profits, as adjusted earnings per share (EPS) of $0.26 jumped 37%. For context, analysts' consensus estimates were calling for revenue of $404 million and EPS of $0.18, so the company cleared both those hurdles with ease.

The underlying customer metrics were equally robust. Growth in same-store sales (comps) was 6.1% systemwide and 7.8% for company-owned shops.

Further fueling investor enthusiasm was the company's outlook. Management raised its full-year revenue forecast to $1.595 billion at the midpoint of its guidance, up from $1.565 billion last quarter.

Bucking the trend

Investors have been concerned about the state of the restaurant industry and coffeehouses in particular. When Starbucks reported the results of its fiscal 2025 third quarter (ended June 29), revenue of $9.5 billion increased a tepid 4%, while EPS plunged 47%. Furthermore, global sales declined 2%, fueled by a 2% decline in comps.

The fact that Dutch Bros was able to deliver such steamy results caused shareholders to rejoice, sending the stock up by double digits.

For full disclosure, the stock isn't cheap. After this morning's price spike, it's selling for 83 times next year's expected earnings and more than 4 times next year's expected sales. With that much of a premium built in, volatility will remain high. Any failure on Dutch Bros' part to meet investor expectations could results in a correction that is as swift as it is severe.

That said, Dutch Bros is certainly deserving of a premium, especially since it's taking market share from the competition.

Should you invest $1,000 in Dutch Bros right now?

Before you buy stock in Dutch Bros, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dutch Bros wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,099,758!*

Now, it’s worth noting Stock Advisor’s total average return is 1,046% — a market-crushing outperformance compared to 181% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 4, 2025

Danny Vena has positions in Dutch Bros and Starbucks. The Motley Fool has positions in and recommends Starbucks. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.