Has Dutch Bros (BROS) Stock Been Good for Investors?

1 day ago 5

Anders Bylund, The Motley Fool

Thu, December 11, 2025 astatine 10:53 AM CST 4 min read

Dutch Bros banal has gained 60.6% since its September 2021 IPO, somewhat up of the S&P 500's 53% return.
The company's marketplace headdress soared 336%, but dense banal dilution constricted shareholder gains.
The java concatenation has doubled its store number since going public, funded partially by secondary banal offerings -- and plans to astir treble again by 2029.
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Coffee concatenation Dutch Bros (NYSE: BROS) has been astir since 1992, but joined the nationalist banal marketplace overmuch later. The institution raised $557 cardinal successful its archetypal nationalist offering (IPO) connected Sept. 17, 2021.

How person aboriginal investors fared successful the astir 4 years since then?

A smiling idiosyncratic receives java done their car window.

As of Dec. 9, Dutch Bros banal has gained 60.6% since the IPO. The S&P 500 (SNPINDEX: ^GSPC) banal marketplace scale roseate 53% implicit the aforesaid period, though. In different words, Dutch Bros hasn't precisely crushed the marketplace since going public.

Dutch Bros' banal returns alteration dramatically if I displacement the starting constituent of the examination by conscionable a fewer days. For example, the banal posted an underwhelming 14% instrumentality since Sept. 20, 2021 -- conscionable 3 calendar days aft the IPO. I could besides cherry-pick a starting day to marque Dutch Bros look mighty good:

Either way, Dutch Bros' banal has seen robust but not mind-blowing returns implicit time. But the banal started retired with a humble $1.71 cardinal marketplace cap, and present it's up to $7.48 billion. That's a 336% summation -- acold up of the double-digit gains its investors experienced.

That mismatch is the effect of monolithic banal dilution. That's a two-part issue:

Dutch Bros ran respective secondary banal offerings successful 2023 and 2024, bolstering a cash-poor equilibrium sheet. The institution had 57.4 cardinal afloat diluted shares outstanding successful the 2nd 4th of 2023. By the extremity of 2024, the diluted stock number had ballooned to 115.2 million.
The institution besides offers stock-based compensation to immoderate employees. That non-cash disbursal accounted for 19% of Dutch Bros' selling, general, and administrative costs successful 2023, for instance. Backing retired conscionable that enactment point from 2023's bottommost enactment would assistance full-year net from $0.03 to $0.27 per diluted share. This programme besides adds a important fig of further shares each year, connected apical of the company's secondary banal offerings.

Dutch Bros is raising superior for a reason, of course. The store number has exploded from 503 drive-through java shops successful September 2021 to 1,043 locations successful the latest report. And astir each of the further stores are company-owned, portion the fig of franchised operations lone accrued by 20%.