Dutch Bros

BROS

Restaurants · Consumer Cyclical

Price

$68.36

+3.01 (+4.61%)

Market Cap

$11.81B

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+174.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 45.9M (2021) → 125.8M (2025)

Dutch Bros is a drive-through coffee and beverage chain based in the United States. It sells coffee drinks, energy drinks, smoothies, and teas, mostly to everyday consumers who want a fast, affordable alternative to sitting-down coffee shops. The company started in Oregon in 1992 and has grown into one of the largest drive-through coffee chains in the country.

Dutch Bros makes money by operating its own shops and by collecting royalties and fees from franchised locations. It currently has over 900 locations, concentrated mostly in the western and southern United States, with ongoing expansion into new states. The brand has a loyal, younger customer base and a strong drive-through-only format that keeps costs lower than full-service cafes. The key growth driver is opening new shops in markets where Dutch Bros does not yet have a presence, though rising labor and real estate costs could pressure profit margins as it scales.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+30.8% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+0.0% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

4.0%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$264M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Dutch Bros grew revenue 31% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

22.8%

Thin — 22.8% gross margin

Operating Margin

7.7%

Modest — 7.7% operating margin

ROCE

3.8%

Weak — 3.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+28.4%

Fast-growing sales (28.4% YoY)

EPS YoY

+63.5%

Earnings growing fast (63.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

426%

Turns 426% of profit into real cash

FCF Margin

5.2%

Thin free cash flow (5.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.34

Conservative — low debt load (0.34)

Interest Cover

12.13x

Comfortably covers interest (12.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

106.8x

Expensive — P/E 106.8

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+63.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (106.8 → 43.7)

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Dividends

Not applicable for this business.

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