Recent News
November 5, 2025 — Dutch Bros announced third-quarter results and highlighted a pipeline of new shops and elevated same-shop sales through October. November 18, 2025 — trade publications and industry outlets reiterated the company’s plan to grow to roughly 2,029 locations by 2029. November 2025 — coverage also emphasized expansion into new states and media reporting that franchise opportunities remain limited to internal employees.
Technical Analysis
ADX at 19.63 indicates no established trend; this low strength suggests technical signals lack conviction versus the company’s expansion narrative and the current WMDST valuation of over-valued.
DI+: 19.08 showing a peak & reversal and DI-: 26.81 increasing — both directional readings point to bearish directional pressure, tilting near-term price bias toward downside relative to the stated valuation.
MACD sits negative at -1.02 and is decreasing, trading below its signal line (-0.56); that combination indicates prevailing bearish momentum and no confirmed bullish momentum shift for price to re-rate the valuation higher.
MRO reads 19.17 with a peak & reversal; this positive MRO implies price sits above the oscillator’s target and carries a corrective bias that could relieve upside valuation pressure.
RSI at 44.19 with a peak & reversal places momentum below neutral and supports short-term selling pressure. Price trades below the 50-day ($54.64) and 200-day ($63.31) averages, the 12-day EMA is decreasing, and the close ($50.87) sits near or below the lower Bollinger band (1x lower $51.38), all consistent with short-term weakness against the stock’s long-term expansion story.
Fundamental Analysis
Revenue and operating results: total revenue $423,584,000 for the period matches the company’s reported quarterly top line. Reported same-store sales growth and new-shop productivity underpinned top-line expansion referenced in recent filings.
Profitability: EBIT $41,639,000 and EBITDA $70,705,000 translate to an EBIT margin of 9.83%. EBIT margin moved QoQ -22.40% and YoY -0.10%, indicating compressed margin on the most recent quarter-over-quarter comparison while remaining positive on a trailing basis.
Margins and cash flow: gross margin 25.21% and operating margin 9.80% remain positive, with operating cash flow $89,125,000 and free cash flow $18,920,000; free cash flow yield equals 0.26%, a low cash-yield profile given current market capitalization and enterprise figures and a driver of the valuation assessment.
Leverage and liquidity: cash $267,195,000 against total debt $1,036,577,000 produces debt-to-assets of 35.48% and debt-to-equity of 157.88%, while the current ratio stands at 1.52 and quick ratio 1.32; leverage sits materially above common peer liquidity metrics, increasing sensitivity to operating swings during aggressive unit expansion.
Returns and efficiency: return on equity 2.67% and return on assets 0.61% remain modest relative to growth expectations; asset turnover 14.77% signals capital intensity tied to new-shop openings.
Market multiples and valuation context: trailing PE 306.66 and forward PE ~467.22 sit at high absolute multiples, while price-to-book 11.27 records above the industry peer mean. WMDST values the stock as over-valued; that view aligns with a low free-cash-flow yield (0.26%), elevated price-to-book, and a high enterprise multiple, despite the company’s revenue expansion and EPS beat (EPS $0.19 vs estimate $0.17, a 11.76% surprise).
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 254.4 M |
| Operating Cash Flow | $ 89.1 M | |
| Capital Expenditures | $ -70.20 M | |
| Change In Working Capital | $ 15.2 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 12.8 M | |
| End Period Cash Flow | $ 267.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 423.6 M | |
| Forward Revenue | $ 103.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 316.8 M | |
| Depreciation | $ 29.1 M | |
| Depreciation and Amortization | $ 29.1 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 382.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 106.8 M | |
| EBITDA | $ 70.7 M | |
| EBIT | $ 41.6 M | |
| Operating Income | $ 41.5 M | |
| Interest Income | — | |
| Interest Expense | $ 6.7 M | |
| Net Interest Income | $ -6.70 M | |
| Income Before Tax | $ 34.9 M | |
| Tax Provision | $ 7.7 M | |
| Tax Rate | 21.9 % | |
| Net Income | $ 17.5 M | |
| Net Income From Continuing Operations | $ 27.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.17 | |
| EPS Actual | $ 0.19 | |
| EPS Difference | $ 0.02 | |
| EPS Surprise | 11.765 % | |
| Forward EPS | $ 0.14 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.9 B | |
| Intangible Assets | $ 23.4 M | |
| Net Tangible Assets | $ 633.2 M | |
| Total Current Assets | $ 341.1 M | |
| Cash and Short-Term Investments | $ 267.2 M | |
| Cash | $ 267.2 M | |
| Net Receivables | $ 14.3 M | |
| Inventory | $ 45.3 M | |
| Long-Term Investments | $ 10.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 38.2 M | |
| Short-Term Debt | $ 3.9 M | |
| Total Current Liabilities | $ 224.5 M | |
| Net Debt | — | |
| Total Debt | $ 1.0 B | |
| Total Liabilities | $ 2.1 B | |
| EQUITY | ||
| Total Equity | $ 656.6 M | |
| Retained Earnings | $ 78.1 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 5.17 | |
| Shares Outstanding | 127.031 M | |
| Revenue Per-Share | $ 3.33 | |
| VALUATION | Market Capitalization | $ 7.4 B |
| Enterprise Value | $ 8.2 B | |
| Enterprise Multiple | 115.564 | |
| Enterprise Multiple QoQ | 2.569 % | |
| Enterprise Multiple YoY | 83.981 % | |
| Enterprise Multiple IPRWA | high: 234.406 median: 155.361 mean: 144.016 BROS: 115.564 low: -71.019 |
|
| EV/R | 19.29 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 4.45 | |
| Asset To Liability | 1.421 | |
| Debt To Capital | 0.612 | |
| Debt To Assets | 0.355 | |
| Debt To Assets QoQ | 1.703 % | |
| Debt To Assets YoY | 5374.537 % | |
| Debt To Assets IPRWA | high: 1.761 mean: 0.894 median: 0.571 BROS: 0.355 low: 0.322 |
|
| Debt To Equity | 1.579 | |
| Debt To Equity QoQ | 2.39 % | |
| Debt To Equity YoY | 5145.216 % | |
| Debt To Equity IPRWA | high: 5.029 BROS: 1.579 median: 0.577 mean: 0.401 low: -1.807 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 11.273 | |
| Price To Book QoQ | -14.123 % | |
| Price To Book YoY | 52.956 % | |
| Price To Book IPRWA | BROS: 11.273 high: 10.033 median: 2.629 mean: 1.04 low: -10.707 |
|
| Price To Earnings (P/E) | 306.663 | |
| Price To Earnings QoQ | 24.305 % | |
| Price To Earnings YoY | 44.843 % | |
| Price To Earnings IPRWA | high: 554.327 mean: 325.6 BROS: 306.663 median: 248.389 low: -28.173 |
|
| PE/G Ratio | -61.333 | |
| Price To Sales (P/S) | 17.474 | |
| Price To Sales QoQ | -12.996 % | |
| Price To Sales YoY | 53.272 % | |
| Price To Sales IPRWA | high: 42.809 median: 26.401 mean: 25.83 BROS: 17.474 low: 0.275 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 467.217 | |
| Forward PE/G | -93.443 | |
| Forward P/S | 71.304 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -11.211 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.148 | |
| Asset Turnover Ratio QoQ | -0.912 % | |
| Asset Turnover Ratio YoY | 5.033 % | |
| Asset Turnover Ratio IPRWA | high: 0.425 mean: 0.231 median: 0.224 BROS: 0.148 low: 0.103 |
|
| Receivables Turnover | 30.434 | |
| Receivables Turnover Ratio QoQ | -7.895 % | |
| Receivables Turnover Ratio YoY | 2.134 % | |
| Receivables Turnover Ratio IPRWA | high: 147.269 BROS: 30.434 mean: 24.18 median: 9.878 low: 4.713 |
|
| Inventory Turnover | 7.224 | |
| Inventory Turnover Ratio QoQ | -1.521 % | |
| Inventory Turnover Ratio YoY | 23.758 % | |
| Inventory Turnover Ratio IPRWA | high: 61.844 median: 26.534 mean: 25.909 low: 8.017 BROS: 7.224 |
|
| Days Sales Outstanding (DSO) | 2.998 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 5.44 | |
| Cash Conversion Cycle Days QoQ | 0.556 % | |
| Cash Conversion Cycle Days YoY | -14.734 % | |
| Cash Conversion Cycle Days IPRWA | high: 10.518 BROS: 5.44 median: 0.66 mean: -0.806 low: -14.181 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 3.63 | |
| CapEx To Revenue | -0.166 | |
| CapEx To Depreciation | -2.415 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 852.6 M | |
| Net Invested Capital | $ 856.4 M | |
| Invested Capital | $ 856.4 M | |
| Net Tangible Assets | $ 633.2 M | |
| Net Working Capital | $ 116.7 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.19 | |
| Current Ratio | 1.52 | |
| Current Ratio QoQ | -7.139 % | |
| Current Ratio YoY | -19.83 % | |
| Current Ratio IPRWA | high: 4.054 median: 2.686 mean: 2.67 BROS: 1.52 low: 0.247 |
|
| Quick Ratio | 1.318 | |
| Quick Ratio QoQ | -7.405 % | |
| Quick Ratio YoY | -21.687 % | |
| Quick Ratio IPRWA | high: 2.799 median: 2.632 mean: 1.871 BROS: 1.318 low: 0.19 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 14.661 | |
| Cost Of Debt | 0.518 % | |
| Interest Coverage Ratio | 6.219 | |
| Interest Coverage Ratio QoQ | -16.454 % | |
| Interest Coverage Ratio YoY | 28.373 % | |
| Interest Coverage Ratio IPRWA | high: 16.79 mean: 7.088 BROS: 6.219 median: 5.307 low: -2.235 |
|
| Operating Cash Flow Ratio | 0.212 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 11.089 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.903 % | |
| Revenue Growth | 1.869 % | |
| Revenue Growth QoQ | -89.057 % | |
| Revenue Growth YoY | -54.314 % | |
| Revenue Growth IPRWA | high: 4.142 % BROS: 1.869 % median: 0.807 % mean: 0.789 % low: -7.107 % |
|
| Earnings Growth | -5.0 % | |
| Earnings Growth QoQ | -105.833 % | |
| Earnings Growth YoY | -68.332 % | |
| Earnings Growth IPRWA | high: 20.0 % BROS: -5.0 % mean: -11.73 % median: -25.0 % low: -43.103 % |
|
| MARGINS | ||
| Gross Margin | 25.208 % | |
| Gross Margin QoQ | -12.684 % | |
| Gross Margin YoY | -5.326 % | |
| Gross Margin IPRWA | high: 48.853 % median: 39.167 % mean: 35.414 % BROS: 25.208 % low: 13.06 % |
|
| EBIT Margin | 9.83 % | |
| EBIT Margin QoQ | -22.403 % | |
| EBIT Margin YoY | -0.102 % | |
| EBIT Margin IPRWA | high: 27.788 % mean: 12.138 % BROS: 9.83 % median: 7.952 % low: -20.911 % |
|
| Return On Sales (ROS) | 9.795 % | |
| Return On Sales QoQ | -25.485 % | |
| Return On Sales YoY | -0.457 % | |
| Return On Sales IPRWA | BROS: 9.795 % high: 9.496 % median: 7.952 % mean: 7.028 % low: -0.518 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 18.9 M | |
| Free Cash Flow Yield | 0.256 % | |
| Free Cash Flow Yield QoQ | -40.047 % | |
| Free Cash Flow Yield YoY | -62.628 % | |
| Free Cash Flow Yield IPRWA | high: 4.283 % median: 0.82 % mean: 0.541 % BROS: 0.256 % low: -3.758 % |
|
| Free Cash Growth | -46.982 % | |
| Free Cash Growth QoQ | -90.819 % | |
| Free Cash Growth YoY | -92.631 % | |
| Free Cash Growth IPRWA | high: 250.173 % BROS: -46.982 % median: -92.854 % mean: -323.845 % low: -892.774 % |
|
| Free Cash To Net Income | 1.081 | |
| Cash Flow Margin | 11.216 % | |
| Cash Flow To Earnings | 2.716 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.61 % | |
| Return On Assets QoQ | -33.624 % | |
| Return On Assets YoY | 15.97 % | |
| Return On Assets IPRWA | high: 3.985 % mean: 1.714 % median: 1.128 % BROS: 0.61 % low: -4.364 % |
|
| Return On Capital Employed (ROCE) | 1.544 % | |
| Return On Equity (ROE) | 0.027 | |
| Return On Equity QoQ | -33.838 % | |
| Return On Equity YoY | 10.261 % | |
| Return On Equity IPRWA | high: 0.235 BROS: 0.027 median: 0.019 mean: -0.001 low: -0.092 |
|
| DuPont ROE | 2.707 % | |
| Return On Invested Capital (ROIC) | 3.797 % | |
| Return On Invested Capital QoQ | -28.291 % | |
| Return On Invested Capital YoY | -136.835 % | |
| Return On Invested Capital IPRWA | high: 6.942 % BROS: 3.797 % mean: 3.322 % median: 2.158 % low: -7.241 % |
|