Investing.com -- Dutch Bros Inc ( BROS ) shares plunged more than 11% in premarket trading Thursday after the coffee chain reported slowing same-shop sales growth and cut its full-year adjusted EBITDA guidance despite beating third-quarter earnings estimates.
The company reported adjusted earnings per share of $0.25 for the third quarter, topping the analyst estimate of $0.24. Revenue grew 29.8% YoY to $549.8 million, slightly above the consensus estimate of $548.6 million and up from $423.6 million in the same period last year. However, company-operated same-shop sales increased just 5.4%, while systemwide same-shop sales rose 4.4%, marking a deceleration from prior quarters.
Dutch Bros lowered its full-year adjusted EBITDA outlook to approximately $380 million, down from previous guidance of $385 million to $390 million, and raised capital expenditure guidance to between $370 million and $390 million. The company now projects full-year revenue of at least $2.1 billion, below the consensus estimate of $2.131 billion.
Baird analysts said they remain optimistic about Dutch Bros' long-term growth, citing its unit economics and room to open more stores. But they said management's satisfaction with recent results "seems disconnected from investor expectations," given slowing transaction growth.
The analysts said the lack of near-term visibility into a recovery in traffic has "tempered our conviction" and lowered the stock's standing among their preferred ideas. They said "evidence of sustained traffic acceleration" will be needed to restore investor confidence and support a higher valuation.
Separately, Citi analysts said the "competition debate is set to flare up again as BROS tempered its outlook for '26 SSS/EBITDA while ramping unit growth plans for '27."
"To date, BROS has grown comps/EBITDA as competition has ramped (legacy and newcomers) and we see '26/the years ahead continuing this trend," they added.
The company opened 48 new shops during the quarter, bringing the total shop count to 1,273. Dutch Bros also completed the reacquisition of 32 franchise locations in Phoenix's East Valley on July 27, 2026. Net income for the quarter was $37.2 million, up from $27.3 million in the prior-year period.
For 2027, Dutch Bros announced an accelerated shop opening target of approximately 250 locations, up from its previous expansion pace. The company maintained its 2026 guidance of at least 185 total system shop openings and same-shop sales growth of at least 5%.
"Dutch Bros continues to gain share in the high-growth beverage category," said Christine Barone, Chief Executive Officer and President. "In the third quarter, we achieved our fourteenth consecutive quarter of positive same shop sales and ninth consecutive quarter of same shop customer visit growth."
Vahid Karaahmetovic contributed to this report.
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