BROS' Expansion Pipeline Surges: Will the Growth Last in 2026?

Dutch Bros Inc. BROS is entering its next stage of development with a materially stronger expansion engine, supported by a pipeline that has scaled more quickly than at any point in the company’s history. While same-shop sales and transaction trends continue to shape near-term performance, the depth and velocity of the company’s site approvals are emerging as a central indicator of its medium-term growth capacity.

Over the past six months, Dutch Bros has approved 30-plus potential sites per month, a pace that reflects expanded real estate capabilities, improved planning tools and more structured market evaluation processes. This level of consistency is notable, especially as the company prepares for an accelerated buildout schedule. Management reiterated plans for approximately 175 system shop openings in 2026, positioning Dutch Bros to advance toward its stated long-term target of 2,029 locations by 2029.

Operational execution in new markets continues to support this trajectory. With 38 new shops opened, pushing the system count to 1,081, the company highlighted “consistently long lines and strong customer demand” across the Midwest and Southeast. These markets represent the next wave of geographic expansion and are critical for demonstrating brand portability beyond its legacy footprint.

Still, several variables could influence the growth cadence as the company moves into 2026. Management noted that coffee cost inflation is rising and may remain elevated into next year, with potential implications for shop-level profitability. Labor costs are also set to increase, particularly in California, where regulatory changes are expected to contribute approximately 50 basis points of pressure. In addition, pre-opening expenses have increased as more shops come online in new and developing trade areas where training teams are required.

Even with these pressures, the company’s development posture reflects a more structured, analytics-driven approach to scaling its footprint. A larger and faster-moving pipeline, improved capital efficiency and steady demand across new regions suggest that Dutch Bros is building the operational foundation required to support its targeted pace of expansion.

BROS’ Stock Price Performance, Valuation & Estimates

Shares of Dutch Bros have gained 11.3% so far this year against the industry’s fall of 7%. In the same time frame, other industry players like Starbucks Corporation SBUX, Sweetgreen, Inc. SG and Chipotle Mexican Grill, Inc. CMG have declined 7%, 79.3% and 43.6%, respectively.

BROS YTD Price Performance

From a valuation standpoint, BROS trades at a forward price-to-sales (P/S) multiple of 4.86, above the industry’s average of 3.50. Meanwhile, industry players, such as Starbucks, Sweetgreen and Chipotle, have P/S multiples of 2.53, 1.03 and 3.46, respectively.

The Zacks Consensus Estimate for BROS’ 2026 earnings per share has remained unchanged at 86 cents in the past 60 days.

The company is likely to report strong earnings, with projections indicating a 27.6% rise in 2026. Industry players like Sweetgreen and Chipotle are likely to witness an increase of 15.5% and 4.9%, respectively, year over year, in 2026 earnings. Meanwhile, Starbucks' 2026 earnings are expected to rise 13.6% year over year.

BROS stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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