Dutch Bros has once again delivered an outstanding performance in the second quarter of 2026, showcasing sustained growth and strategic advancements. The company achieved its thirteenth consecutive quarter of increased same-shop sales and its eighth consecutive quarter of transaction growth, driven by its unique 'people-led' culture, innovative product offerings, and an aggressive real estate development strategy. These strong results have led to an upward revision of its full-year financial projections, underscoring management's confidence in the brand's continued expansion and profitability.
The company's Chief Executive Officer and President, Christine Barone, along with Chief Financial Officer, Joshua Guenser, presented a comprehensive overview of the Q2 2026 financial performance and strategic direction. The earnings call, held on Wednesday, August 5, 2026, at 5 p.m. ET, highlighted key financial achievements and operational milestones that are propelling Dutch Bros' growth. Total revenue saw a remarkable 32.5% increase year-over-year, reaching $550.9 million, primarily fueled by the expansion into new locations and consistent sales growth at existing shops. Net income surged to $51.6 million, a significant improvement from $38.4 million in the same period of 2025. Adjusted EBITDA also demonstrated strong growth, climbing to $113.7 million, an increase of 27.8%, with a margin of 20.6%. Adjusted earnings per share (EPS) rose to $0.33, up from $0.26 in the prior year's second quarter.
Operational metrics further illustrated the company's robust health. Systemwide same-shop sales grew by 5.8%, attributed to a 4.1% increase in ticket size and a 1.7% rise in transactions. Company-operated same-shop sales outperformed, achieving 8.3% growth, with a 4.9% ticket increase and 3.4% transaction growth. The average unit volume (AUV) systemwide reached $2.2 million over the trailing 12 months, with company-operated AUV matching this figure, signaling enhanced productivity across newer shop vintages. Dutch Bros opened 48 new shops during the quarter, including 44 company-operated locations, bringing the total shop count to 1,225 across 26 states as of June 30, 2026. This aggressive expansion aligns with the company's ambitious goal of reaching 4,000 shops by 2029.
Strategic initiatives played a crucial role in these positive outcomes. The rollout of a new food program was completed across approximately 750 system shops ahead of schedule, proving to be a key driver for morning sales and customer engagement. The introduction of Myst Energy Refreshers, a plant-powered energy drink, further strengthened Dutch Bros' position in the energy beverage market. This new category, initially launched as a limited-time offering, demonstrated strong repeat rates and positive customer feedback, leading to its permanent inclusion on the menu. The company's digital loyalty program, Dutch Rewards, continued to deepen customer engagement, with 73% of total transactions flowing through the program. Order Ahead capabilities also saw increased adoption, accounting for 16% of total transactions, enhancing convenience for customers.
Looking ahead, Dutch Bros raised its full-year revenue guidance to between $2.1 billion and $2.13 billion, representing 28% to 30% growth. Full-year same-shop sales growth is now projected to be in the range of 5% to 6%, with performance trending towards the midpoint. Adjusted EBITDA guidance was updated to $385 million to $390 million, reflecting the impact of the Phoenix market acquisition, which involved acquiring 31 locations for $63.5 million. This acquisition is expected to contribute an additional $25 million in revenue and $5 million in Adjusted EBITDA for the remainder of 2026. Additionally, Dutch Bros entered an agreement to acquire real estate for up to 65 Salad and Go lease sites in Arizona, Nevada, Oklahoma, and Texas, aiming to further expand its company-operated presence in key growth markets.
The company also remains focused on operational efficiency. Labor costs as a percentage of company-operated revenue improved by 120 basis points year-over-year, primarily due to sales leverage. However, cost of sales increased by 80 basis points, driven by higher coffee costs and the new food program rollout. Preopening expenses also saw an increase due to the higher volume of new shop openings. Dutch Bros maintains a strong liquidity position of $699 million, including $269 million in cash and an undrawn revolver. The company's commitment to its 'people-led' culture and community involvement was also highlighted, with the Drink 1 for Dame Day raising over $1.7 million for the Muscular Dystrophy Association, surpassing $20 million in lifetime donations.
Dutch Bros is well-positioned for continued success, leveraging its unique brand appeal, robust development pipeline, and customer-centric innovations. The firm's ability to consistently deliver strong financial results and operational excellence, coupled with its strategic expansion into new markets and enhanced customer engagement through digital platforms and diverse menu offerings, points to a bright future. This ongoing momentum underscores Dutch Bros' capacity to capture further market share and solidify its prominent position within the competitive beverage industry.
