Dutch Bros: Key takeaways from HQ visit

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Dutch Bros: Key takeaways from HQ visit

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Dutch Bros

Key takeaways from HQ visit

Maintain Rating: BUY | PO: 75.00 USD | Price: 52.77 USD

Food, LTOs, digital drive upwardly revised F26, LT algo 19 May 2026

The food lineup (breakfast sandwiches, a wrap, and a waffle) in 485 stores as of 1Q26 is Equity

broadly appealing, affording a long runway for breakfast daypart growth (~1/3 of BROS’s

sales vs 50% for the beverage industry). LTOs like Myst Energy and Blended Strawberry Sara Senatore Research Analyst

Colada capture current trends and the QSR-like cadence (~2 months per LTO) ensures BofAS

novelty to attract new customers and increase existing customer frequency. Updated +1sara.senatore@bofa.com646 743 2110

F26 comp guide (4-6% vs 3-5% prior) is likely still conservative. Isiah Austin

Research Analyst

Long-term margin targets intact as BROS invests BofAS+1 646 855 0472

As near-term headwinds abate over time (elevated coffee costs), BROS should move isiah.austin@bofa.com

closer to the LT margin outlook of ~30%. BROS also intends to continue to lever G&A

despite investing in field teams and real estate teams that support new store openings.

While BROS rationalizes labor deployment models across the system, savings from new Stock Data

efficiencies will be reinvested into training, staffing, and leadership development.

Occupancy margins saw a 50bp headwind in 1Q owing to BROS’ continued shift from Price 52.77 USD

ground lease to build to suit (impact is expected to persist throughout 2026). Price Objective 75.00 USD

Date Established 7-May-2026

Investment Opinion C-1-9New market strength highlights unit dev opportunity

AUVs in new markets (most recently in Chicago) continue to outperform as BROS builds 52-Week Range 44.58 USD - 77.88 USD